Daily Management Review

Bombardier: business jet market will rise by 2025


05/24/2016


Today, one of the leaders of the world business aviation market, Canadian Bombardier, has released a ten-year forecast. The document says that up to 2025, the market will require more than 8 thousand new business jets worth a total of $ 250 billion. The largest market will be North America, followed by Europe with a two-time lag.



Alexandre Gouger
Alexandre Gouger
Bombardier’s forecast was presented today in Geneva at European Business Aviation Convention and Exhibition. In the report, the company analyzes the market situation in connection with the developments in the global economy and the economic situation of the largest regions of the world. Bombardier said that 8.3 thousand new business jets will be delivered in the world during 2016-2025 years, which will give the industry revenues totaling $ 250 billion. "Our forecast refers to long-term trends that we take into account in the development strategy. This allows us to quickly and effectively adapt to the changing conditions in the market", - said vice-president of Bombardier Business Aircraft Jean-Christophe Gallagher.

The company expects North America to remain the largest market for business aviation, requiring 3930 new aircraft until 2025. The second-largest market in the world will remain Europe with the projected supply of new business jets at the level of 1530 units.

The company notes that developing countries, where demand for business jets only starts to grow, will also provide good support for the market. According to Bombardier, the market is waiting for growth at the long run, with large models dominating the market. Experts note that other business jet manufacturers have also caught the trend. They also offer not only larger, but also more sophisticated aircraft, equipped with Wi-Fi, touch screens and mobile office systems. In an interview with Financial Times, senior vice president of American Cessna Aircraft Kriya Shortt commented that this trend was triggered by manufacturers forced to adapt to the growing demands of customers. She noted that buyers now want to be "able to work more effectively, even if they are in the air."

Bombardier’s prediction is slightly at odds with the current situation. Deliveries of business jets of Bombardier Inc. fell in the first quarter of this year by almost a third. The fall in demand for business jets was noted in almost all classes, touching both light and large aircraft.

During the first three months of 2016, the Canadian aircraft manufacturer transferred to customers 31 business jet in total, including fourteen Challenger 350 models, fourteen Global 5000/6000S, two Challenger 650 and a Learjet 70/75. For comparison: last year for the same period were sold 45 jets - 17 Global, Challenger 350 14, nine Learjet and five Challenger 605/650. The only product in Bombardier’s range that has not lost its positions turned out to be super-middle Challenger 350. More even, this aircraft provided 40 new orders, compared to 20 orders a year earlier.

Accordingly, the company's revenue for the first quarter fell compared with the previous year by 15%. It is projected that by the end of this year, Bombardier will be able to supply about 150 business jets, which 49 pieces less than in 2015. However, the company says that in the long term, Bombardier is ready for further development and profit, the key to which should be work on new projects Global 7000 and 8000, which are positioned as key elements of the company's strategy.

source: reuters.com






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