Welcome!

Agile Computing Authors: Yeshim Deniz, Liz McMillan, Elizabeth White, Roger Strukhoff, ManageEngine IT Matters

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
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
SYS-CON Events announced today that Sheng Liang to Keynote at SYS-CON's 19th Cloud Expo, which will take place on November 1-3, 2016 at the Santa Clara Convention Center in Santa Clara, California.
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your ...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th 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 devices - comp...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.