Welcome!

Agile Computing Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mehdi Daoudi, Harry Trott

News Feed Item

Bombardier Aerospace Releases Annual Business and Commercial Aircraft Market Forecasts

- 22,000 forecasted business jet deliveries from 2014 to 2033 valued at $617 billion

MONTREAL, QUEBEC -- (Marketwired) -- 07/13/14 -- Today, Bombardier released its annual 20-year forecasts for the business and commercial aircraft markets.

While the world economy has grown at a slower than expected rate, signs of improvement in the business and commercial aircraft markets have started to emerge. Business indicators are pointing towards a gradual industry recovery. New aircraft orders are supported by continued demand from established markets - such as North America and Europe - and growth potential in emerging markets, which are forecasted to play an increasing role in the global aviation marketplace. China is expected to be the second largest region in terms of commercial aircraft deliveries in the 20- to 149-seat segment, and the third for business aircraft over the next 20 years. Also, as environmental concerns continue to gain importance and high fuel prices add pressure to the bottom line, operators across both industries will remain focused on finding more efficient and sustainable solutions.

"At Bombardier, we have a long and proud tradition of pushing the boundaries of technology, and developing the next generation of aircraft that will better meet the needs of our customers - both today, and tomorrow," said Michael McAdoo, Vice President, Strategy and International Development, Bombardier Aerospace. "As such, Bombardier Aerospace with its new category-defining business and commercial programs is well-positioned to strengthen its leadership position in its current markets."

Business Aircraft Market Forecast

Bombardier is confident in the strong, long-term potential of the business aircraft industry and forecasts a total of 22,000 business jet deliveries from 2014 to 2033 in the segments in which Bombardier competes(i) representing approximately $617 billion US(ii) in industry revenues. Bombardier's Business Aircraft Market Forecast anticipates 9,200 aircraft deliveries, worth $264 billion US between 2014 and 2023, and 12,800 aircraft, worth $353 billion US, from 2024 to 2033.

The market for business aviation continues to show promising signs of recovery. While current macroeconomic indicators are mixed, the overall trend for the world economy is stable to positive. In 2014, the world GDP is expected to grow by 2.9 per cent, with higher growth expected in 2015 onward. Industry order intake saw incremental improvement in 2013 over 2012, allowing the industry to record a book-to-bill ratio of one for the second year in a row. Industry deliveries are expected to increase slightly in 2014 from 2013 based on the delivery guidance of manufacturers and new aircraft programs.

Business aircraft orders are expected to remain challenging in 2014 across the industry, but projected to improve beginning in 2015. 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 2014 and 2033, followed by Europe, which remains the second largest market. China is forecast to become the third largest region in terms of deliveries over the next 20 years with 950 deliveries from 2014 to 2023, and 1,275 deliveries from 2024 to 2033.

Bombardier predicts that - similar to commercial aviation - future challenges facing the business aviation sector include rising fuel prices and increased environmental awareness. To face these challenges, Bombardier continues to invest in innovative, more efficient transportation solutions through its new aircraft development programs that include the Global 7000, Global 8000 and Learjet 85 aircraft.

Commercial Aircraft Market Forecast

The commercial aviation market is profitable and growing, and the industry continues to evolve to manage growth, high fuel prices and increased competition. Over the next 20 years, Bombardier forecasts demand for 13,100 aircraft deliveries in the 20- to 149-seat seat segment valued at $658 billion US(ii).

Bombardier forecasts the following industry deliveries by segment:


--  20-to 59-seats: 400 aircraft deliveries 
--  60- to 99-seats: 5,600 aircraft deliveries 
--  100- to 149-seats: 7,100 aircraft deliveries 

In the 20- to 59-seat segment, Bombardier anticipates that new aircraft deliveries will continue at a modest pace for the duration of the forecast period as old aircraft are retired and replaced with larger types. The 60- to 99-seat segment will continue to be one of the most dynamic in commercial aviation. It is anticipated that the fleet in this segment will more than double in size with new aircraft deliveries evenly split between large turboprops and large regional jets. The 100- to 149-seat aircraft segment, which has not been the focus of aircraft development for at least the past two decades, will witness a major fleet transformation with the entry-into-service of new clean-sheet aircraft designs.

The global demand for air travel and new aircraft continues to shift towards emerging markets where demand for air travel continues to grow with increasing GDP and an expanding middle class. However, as with the business aircraft industry, North America is expected to lead the way in commercial aircraft deliveries over the forecast period, taking in an expected 3,650 new aircraft, followed by Greater China with 2,280 aircraft, Europe with 1,840, the Asia Pacific with 1,400, Latin America with 1,100 aircraft, the Commonwealth of Independent States (CIS) with 830, India with 760, Africa with 700, and the Middle East with 540.

Aircraft in the 20- to 149-seat segment have a vital role to play in the development of new markets, non-stop connections and increased frequencies; 70 per cent of the world's short- to medium-haul markets serve between 50 and 250 passengers per day each way (PDEW), and are best served by 20- to 149-seat aircraft.

With its Q400 NextGen turboprops, CRJ NextGen regional jets 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, 2013, we posted revenues of $18.2 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, CRJ, CSeries, Global 7000, Global 8000, Learjet 85, NextGen, Q400 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 Aerospace and Transportation sections in the Management's Discussion and Analysis ("MD&A") of the Corporation's financial report for the fiscal year ended December 31, 2013.

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; 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 the MD&A of the Corporation's financial report for the fiscal year ended December 31, 2013. 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.

CAUTION REGARDING NON-GAAP MEASURES

This press release is based on reported earnings in accordance with International Financial Reporting Standards (IFRS). Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. It is also based on non-GAAP financial measures including EBITDA, EBIT before special items, EBIT margin before special items, adjusted net income, adjusted earnings per share and free cash flow. These non-GAAP measures are directly derived from the Consolidated Financial Statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our Consolidated Financial Statements with enhanced understanding of our results and related trends and increases transparency and clarity into the core results of our business. Refer to the Non-GAAP financial measures section in the MD&A for definitions of these metrics. Refer to Non-GAAP financial measures and Liquidity and capital resources sections and Analysis of results sections in Aerospace and Transportation of the Corporation's MD&A for reconciliations to the most comparable IFRS measures.

Contacts:
Isabelle Gauthier
Bombardier Aerospace
+1-514-244-2018
www.bombardier.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
Recently, IoT seems emerging as a solution vehicle for data analytics on real-world scenarios from setting a room temperature setting to predicting a component failure of an aircraft. Compared with developing an application or deploying a cloud service, is an IoT solution unique? If so, how? How does a typical IoT solution architecture consist? And what are the essential components and how are they relevant to each other? How does the security play out? What are the best practices in formulating...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...