BELFAST, Northern Ireland --- Today, Bombardier Aerospace released its annual aircraft market forecasts for the business and commercial aircraft markets.
Overall demand for aircraft in the segments in which Bombardier competes will remain strong. As well, there is a geographic shift towards international markets and a structural shift towards more cost-effective aircraft. Bombardier's key product families - business jets and regional aircraft - are expected to continue to generate strong interest across all markets.
"With its comprehensive portfolios of innovative business and regional aircraft, with its state-of-the-art technologies and focus on customer services, Bombardier is well-positioned for continued success," said Michael McAdoo, Vice-President, Strategy and Business Development, Bombardier Aerospace.
Business Aircraft Market Forecast
In the 10-year period from 2007 to 2016, Bombardier's Business Aircraft Market Forecast predicts that corporate aircraft manufacturers will deliver approximately 995 business jets annually, excluding the very light jet segment, a substantial increase from the industry average of over 572 business jet deliveries annually during the 1997 to 2006 period.
The total forecasted 9,950 deliveries over the 10-year period represent revenues of approximately $227 billion US for the industry.
The growth in business jet deliveries is expected to continue over the next four years, continuing to improve on the record set in 2006, then remain strong for the following six years. Based on the industry's continued robust order intake and manufacturers' solid backlogs, Bombardier believes the business aircraft industry will reach this plateau two years later than it had forecasted previously.
Bombardier's forecast also indicates that primary market drivers continue to be positive or stable. These include manufacturers' current average order backlog of approximately 24 months; a sustained U.S. gross domestic product growth is expected to remain at close to three per cent for the next 10 years; strong order intake from international markets, now representing approximately 50 per cent of the total market, and a number of new aircraft programs scheduled to enter service over the next two years.
Commercial Aircraft Market Forecast
According to Bombardier's Commercial Aircraft Market Forecast, demand for 20- to 149-seat commercial aircraft is expected to reach approximately 11,200 new aircraft in the 20-year period ranging from 2007 to 2026, an increase in demand from last year's forecast. Forecasted demand is valued at approximately $393 billion U.S. based on manufacturers' aircraft list prices.
Airline capacity is expected to double over the next 20 years. The trend towards larger aircraft, coupled with sustained higher fuel prices, will reinforce operators' requirement for modern aircraft with low operating costs.
The forecast reflects this shift in demand to larger commercial aircraft:
- In the 20- to 59-seat aircraft segment: the forecast expects a demand of approximately 1,000 aircraft;
- In the 60- to 99-seat aircraft segment: demand is expected to reach approximately 4,300 aircraft;
- In the 100- to 149-seat aircraft segment: the forecast predicts a demand for approximately 5,900 aircraft.
The CRJ Series and Q-Series families of airliners have enabled Bombardier to be an active player, and to continue to take advantage of growth opportunities, in the regional aircraft market. Its larger cost-efficient CRJ700/CRJ900 regional jets and the Q400 turboprop are the backbone of many airline fleets worldwide. The newly launched CRJ1000, which will seat up to 100 passengers, combines the proven platform, reliability and flexible cabin configurations of its predecessors with its closest competitor having up to 15 per cent higher trip cash operating costs.
In order to address the 100-149-seat segment, Bombardier continues to refine its CSeries aircraft business plan, including optimizing the aircraft configuration to meet customers' requirements for a more economical, flexible and passenger-oriented airliner. If launched, the target date for entry into service is 2013.
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2007, were $14.8 billion US, and its shares are traded on the Toronto Stock Exchange (BBD).
A PowerPoint presentation on the Bombardier Aerospace annual market forecasts for the business and commercial aircraft markets is available on the internet at the following address: www.bombardier.com