• 20-year commercial aircraft market forecast calls for 11,000 deliveries in 20- to 149-seat market worth $370 billion US
• Five-year baseline corporate aircraft market forecast predicts 600 to 700 deliveries annually from 2006 to 2010
Bombardier Aerospace today released its aircraft market forecasts for the commercial and business aircraft markets.
Commercial Aircraft Market Forecast
In the 20-year period from 2006 to 2025, Bombardier’s commercial aircraft market forecast predicts a demand for 11,000 aircraft deliveries in the 20- to 149-seat market valued at $370 billion US.
The 20- to 149-seat aircraft market is comprised of three distinct segments:
- The 20- to 59-passenger aircraft segment, which includes the aircraft that powered the development of the regional airline industry, is a base for continued deliveries. This segment could represent a demand for 1,100 aircraft;
- The 60- to 99-seat aircraft segment, the current growth phase for regional airlines, is characterized by a focus on seat-mile costs and fleet specialization. This segment could represent a demand for 4,100 aircraft;
- The 100- to 149-passenger airliner market segment is today primarily comprised of mainline carriers and low fare airlines. This segment will grow significantly as demand is driven by the replacement of aging aircraft with new-generation, more fuel-efficient airliners. This segment could represent a demand for 5,800 aircraft.
Bombardier is well positioned to benefit from the demand in new aircraft with its current 50- to 90-seat CRJ Series regional jets and 37- to 78-passenger Q-Series turboprops. It is also studying the introduction of derivative aircraft from these two families to extend the capacity to 100 seats, as well as the development of a new-generation aircraft, the CSeries, optimized for the lower end of the 100- to 149-seat market.
The complete Bombardier Commercial Aircraft Market Forecast can be accessed at www.bombardier.com
Business Aircraft Market Forecast
According to Bombardier’s first-ever public annual business aircraft market forecast, deliveries of all business jets is expected to grow significantly.
For the 2006-2010 period, corporate aircraft manufacturers could deliver an average of 600 to 700 business jets annually, excluding the very light segment, a significant increase from the 540 units delivered during the 2001-2005 period.
The forecast indicates that most primary market drivers are currently stable or positive. These include: an installed base of 13,000 business jets which, on average, require replacement every six years; the U.S. gross domestic product forecasted growth of three per cent next year; a surge of concept buyers in international markets; a healthy balance in the pre-owned aircraft segment; and a strong rate of new aircraft introductions.
Bombardier is well positioned to benefit from the demand in new aircraft with its current line of business jets, the largest in the industry, that features the Learjet, Challenger and Global families and innovative services including its leading Flexjet fractional ownership, Skyjet’s international charter program, and the new Corporate Shuttle Solutions concept.
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2006, were $14.7 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.
Bombardier, CRJ, Q-Series, Learjet, Challenger, Global, Flexjet and Skyjet are trademarks of Bombardier Inc. or its subsidiaries.
Commercial aircraft: Business aircraft:
Bert Cruickshank Leo Knaapen
Bombardier Aerospace Bombardier Aerospace
(416) 375-3030 (514) 855-7988
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include risks associated with general economic conditions, risks associated with the Corporation’s business environment (such as the financial condition of the airline industry, government policies and priorities and competition from other businesses), operational risks (such as regulatory risks and dependence on key personnel, risks associated with doing business with partners, risks involved with developing new products and services, warranty and casualty claim losses, risks from legal proceedings, risks relating to the Corporation’s dependence on certain key customers and key suppliers, risks resulting from fixed term commitments, human resource risks and environmental risks), financing risks (such as risks resulting from reliance on government support, risks relating to financing support provided on behalf of certain customers, risks relating to liquidity and access to capital markets, risks relating to the terms of certain restrictive debt covenants and market risks, including currency, interest rate and commodity pricing risk). See Risks and Uncertainties in the MD&A section of Bombardier Inc.’s annual report for fiscal year 2006 for further information. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect the Corporation’s expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.