Bombardier Aerospace Releases Annual Business and Commercial Aircraft Market Forecast Numbers

Bombardier Aerospace Releases Annual Business and Commercial Aircraft Market 
Forecast Numbers 
- 24,000 forecasted business jet deliveries from 2013 to 2032 valued
at $650 billion  
- 12,800 predicted deliveries in the 20- to 149-seat commercial
aircraft market worth more than $646 billion 
MONTREAL, QUEBEC -- (Marketwired) -- 06/14/13 -- Today, Bombardier
Aerospace released its annual 20-year forecast for the business and
commercial aircraft market numbers.  
As the business and commercial aircraft markets continue to recover
from the industry downturn, signs of forward momentum are beginning
to emerge. While demand for new aircraft orders will continue to come
from established and developed markets, the growth potential in
emerging markets such as China, India, Russia and Latin America is
predicted to play an increasingly important role in the global
aviation marketplace. With fuel prices and environmental concerns
continuing to rise, operators across both industries continue to
focus on fleet optimization and aircraft efficiency.  
"Bombardier Aerospace has a long history of developing
industry-leading solutions to meet the diverse mobility needs of its
customers. This has been achieved by following its long-term vision
to create state-of-the-art aircraft, and investments in the
technology and the talent to develop new and sustainable products
within the business and commercial aviation sectors," said Michael
McAdoo, Vice President, Strategy and International Development,
Bombardier Aerospace. "With its comprehensive product portfolio,
dedication to superior customer support, and solid
product-development roadmap, Bombardier is well-positioned for future
growth."  
Business Aircraft Market Forecast Numbers  
Bombardier is confident in the strong, long-term potential of the
business aircraft industry and forecasts a total of 24,000 business
jet deliveries from 2013 to 2032 in the segments in which Bombardier
competes(i), which represents approximately $650 billion(ii) in
industry revenues. Bombardier's Business Aircraft Market Forecast
anticipates 9,800 aircraft deliveries, worth $269 billion, during the
2013 to 2022 period, and 14,200 aircraft, worth $381 billion, from
2023 to 2032. 
The business aviation market continues to recover, and while current
macroeconomic indicators are mixed, the overall trend for the world
economy is stable to positive. It is expected that as confidence
returns to world markets, aircraft orders and backlogs will expand
and deliveries will grow. While business jet orders and deliveries
for 2013 are expected to be comparable to those of 2012, Bombardier
forecasts that they will begin to improve in 2014 and that the
industry will surpass its prior delivery peak year of 2008 by as
early as 2016. It is also anticipated that with demand for business
jets shifting towards emerging markets, the fleet of Large and Medium
category aircraft will grow, with the Large aircraft category
demonstrating the fastest growth.  
Over the forecast period, Bombardier predicts North America will
receive the greatest number of new business jet deliveries between
2013 and 2032, followed by Europe which, despite its continued
economic challenges, remains the second largest market. China is
forecast to become the third largest region in terms of deliveries
over the next 20 years with 1,000 deliveries from 2013 to 2022, and
1,420 deliveries from 2023 to 2032. Bombardier also expects key
growth markets including Brazil, India, Russia/the Commonwealth of
Independent States (CIS), Mexico, and Turkey to receive a significant
share of business jet deliveries during the next 20 years.  
Bombardier predicts that - similar to commercial aviation - future
challenges facing the business aviation sector include rising fuel
prices and increased environmental awareness. Through its new
aircraft development programs, Bombardier continues to invest in
innovative transportation solutions that include the Global 7000,
Global 8000, Learjet 70, Learjet 75, Learjet 85 and Challenger 350
jets.  
Commercial Aircraft Market Forecast Numbers  
Bombardier Aerospace's 20-year view of the 20- to 149-seat commercial
aircraft market predicts 12,800 deliveries from 2013 to 2032,
generating over $646 billion in sales revenues. While the overall
worldwide demand remains the same as the previous year, the regional
distribution has been re-aligned with an expectation for
below-average GDP growth in the mature markets of North America and
Europe, and for more robust growth in emerging markets.  
Bombardier's forecasted industry deliveries by segment are: 


 
--  20 to 59 seats: 250 aircraft deliveries 
--  60 to 99 seats: 5,650 aircraft deliveries 
--  100 to 149 seats: 6,900 aircraft deliveries 

 
In the 60- to 99-seat aircraft market, Bombardier expects the
regional jet segment will deliver 2,950 units - representing 52 per
cent of the 60- to 99-seat segment total - valued at $105 billion,
and the turboprop segment to deliver 2,700 units over the 20-year
forecast period. In the 100- to 149-seat segment, demand will be
driven by the availability of more fuel-efficient and technologically
advanced aircraft types. Deliveries from 2013 to 2032 within this
segment are forecasted to reach 6,900 aircraft, worth more than $460
billion.  
Strong projected traffic demand, an expanding middle class population
in growth markets, and the continued relaxation of scope clauses
during the forecast period, are the key driving forces behind
Bombardier's 20-year commercial aircraft market forecast numbers.
While demand from international markets such as India, China, Africa
and Latin America are expected to increase significantly, North
America is expected to remain the world's largest market in aircraft
deliveries, taking an expected 3,710 new aircraft, followed by China
and Europe with 2,330 and 1,700 aircraft, respectively.  
Bombardier's Commercial Aircraft Market Forecast numbers predicts
technical obsolescence and rising oil prices will be the most
critical factors influencing airline fleet decisions over the next 20
years and, with the increasing demand for more cost effective and
fuel efficient aircraft, 60 per cent of the current commercial fleet
will be retired by 2032 with most of the retirements occurring in the
smaller 20- to 59-seat segment. However, with increased worldwide
interest in new generation technologies which allow for larger and
more economical 60- to 149-seat aircraft solutions, and steady
economic growth in developing markets, new aircraft demand is
anticipated to remain strong.  
With its three distinct commercial aircraft families - the Q-Series
NextGen, CRJ NextGen and CSeries aircraft - Bombardier has created
products that will meet its customers growing demand for sustainable
transportation solutions that feature a reduced environmental impact. 
About Bombardier 
Bombardier is the world's only manufacturer of both planes and
trains. Looking far ahead while delivering today, Bombardier is
evolving mobility worldwide by answering the call for more efficient,
sustainable and enjoyable transportation everywhere. Our vehicles,
services and, most of all, our employees are what make us a global
leader in transportation.  
Bombardier is headquartered in Montreal, Canada. Our shares are
traded on the Toronto Stock Exchange (BBD) and we are listed on the
Dow Jones Sustainability World and North America Indexes. In the
fiscal year ended December 31, 2012, we posted revenues of $16.8
billion. News and information are available at bombardier.com or
follow us on Twitter @Bombardier.  
Notes to editors 
Follow @Bombardier_Aero on Twitter to receive the latest news and
updates from Bombardier Aerospace.  
(i) Bombardier's competitive segmentation includes Light, Medium and
Large categories. Excludes very light jets and large corporate
airliners.  
(ii) Unit values are based on B&CA magazine 2013 list prices
expressed in US$  
Bombardier, Challenger 350, CRJ, CSeries, Global 7000, Global 8000,
Learjet 70, Learjet 75, Learjet 85, NextGen, Q-Series and The
Evolution of Mobility are trademarks of Bombardier Inc. or its
subsidiaries.  
FORWARD-LOOKING STATEMENTS 
This press release includes forward-looking statements, which may
involve, but are not limited to: statements with respect to our
objectives, guidance, targets, goals, priorities, our market and
strategies, financial position, beliefs, prospects, plans,
expectations, anticipations, estimates and intentions; general
economic and business outlook, prospects and trends of an industry;
expected growth in demand for products and services; product
development, including projected design, characteristics, capacity or
performance; expected or scheduled entry-into-service of products and
services, orders, deliveries, testing, lead times, certifications and
project execution in general; our competitive position; and the
expected impact of the legislative and regulatory environment and
legal proceedings on our business and operations. Forward-looking
statements generally can be identified by the use of forward looking
terminology such as "may", "will", "expect", "intend", "anticipate",
"plan", "foresee", "believe", "continue", "maintain" or "align", the
negative of these terms, variations of them or similar terminology.
By their nature, forward-looking statements require us to make
assumptions and are subject to important known and unknown risks and
uncertainties, which may cause our actual results in future periods
to differ materially from forecasted results. While we consider our
assumptions to be reasonable and appropriate based on information
currently available, there is a risk that they may not be accurate.
For additional information with respect to the assumptions underlying
the forward looking statements made in this press release, refer to
the respective Guidance and forward-looking statements sections in
Overview, Bombardier Aerospace and Bombardier Transportation sections
in the Management's Discussion and Analysis ("MD&A") of the
Corporation's annual report for the fiscal year ended December 31,
2012.  
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 our business environment (such as risks associated with the
financial condition of the airline industry and major rail
operators), operational risks (such as risks related to developing
new products and services; doing business with partners; product
performance warranty and casualty claim losses; regulatory and legal
proceedings; to the environment; dependence on certain customers and
suppliers; human resources; fixed-price commitments and production
and project execution), financing risks (such as risks related to
liquidity and access to capital markets, exposure to credit risk,
certain restrictive debt covenants, financing support provided for
the benefit of certain customers and reliance on government support)
and market risks (such as risks related to foreign currency
fluctuations, changing interest rates, decreases in residual values
and increases in commodity prices).  
For more details, see the Risks and uncertainties section in Other in
the MD&A of the Corporation's annual report for the fiscal year ended
December 31, 2012. 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
our expectations as at the date of this press release and are subject
to change after such date. Unless otherwise required by applicable
securities laws, we expressly disclaim any intention, and assume no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
The forward-looking statements contained in this press release are
expressly qualified by this cautionary statement.
Contacts:
Haley Dunne
Bombardier Aerospace
+1-514-855-7989
www.bombardier.com
 
 
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