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Business Jet Demand Not In Recession
Business Jet Demand Not In Recession

Bombardier Aerospace´s future president and CEO, Pierre Beaudoin (son of current president and CEO Laurent Beaudoin), says his business has not been impacted by economic worries in the U.S. "On the contrary, we see demand that continues to rise," he told reporters in late January. The younger Beaudoin, who is slated to take the reigns of Bombardier in early June, said his company´s order book has the company backlogged by three to four years. The company´s decision to proceed with development of a proposed 110- to 130-seat CSeries airliner is expected this year (keep your eyes on Farnborough). The possibility of the new CSeries aircraft may be solidified with customer interest and Bombardier is already promised funds by Canada if it does move forward with the program. Further, the company has a production agreement with China Aviation Industry Corporation (AVIC). AVIC would invest $ 400 million in the CSeries and build the aircraft´s fuselage, according to a Reuters report. Current plans would see the aircraft fitted with a new Pratt & Whitney engine designed to cut fuel burn by 20 percent. At least one analyst estimates Bombardier will deliver 230 jets this fiscal year and 250 more in 2009. That kind of projection suggests that even if deliveries level off, margins may continue to rise based on better pricing.


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