Outlook Good for Large-cabin Bizjets; Midsize Less So

By: Chad Trautvetter

September 3, 2009
Aerospace Industry, Aircraft

Bombardier Aerospace and Gulfstream Aerospace are well known fierce rivals, but that doesn’t mean they can’t agree from time to time, especially when it comes to the outlook for business jets. In separate investor presentations yesterday, executives at both Bombardier and Gulfstream parent company General Dynamics said they are increasingly optimistic about the outlook for new-production large-cabin business jets over the next two years, though–to quote General Dynamics chairman and CEO Jay Johnson–the midsize category remains “challenged due to high pre-owned inventory levels of midsize jets.

Johnson spoke at the Morgan Stanley global industrial conference in New York, while Bombardier Aerospace president and COO Guy Hachey made his comments during the company’s second-quarter investor conference call. Both believe that the business jet industry is “stabilizing” and that sales of new large-cabin jets are trending upward, while Hachey said cancellations are down and Johnson noted that business aircraft service activity is rising.

Further, Johnson and Hachey separately said these positive trends have been continuing, and gaining more momentum, in recent months. Johnson noted that Gulfstream has a diverse $2 billion backlog, with the bulk of these orders for large-cabin jets.

Bombardier’s Hachey said the backlog for Globals spans 29 months, above the 12- to 18-month target range; Challengers are 17 months, above the target nine- to 12-month range; and midsize Learjets are seven months, within the company’s six- to nine-month range.

Back

Third 747-8 Freighter Enters Flight Testing March 18, 2010 The third Boeing 747-8 Freighter, RC 521, joined the program’s flight-test program yesterday with a successful two-and-a-half-hour maiden... [more]
NG Aircraft Takes Another Shot at Fokker 100 Revival March 16, 2010 Long-standing efforts to revive the Fokker 100 regional jet could get a boost from a €20 million ($27 million) loan offered by the Dutch... [more]
Air Berlin Slashes Boeing 787 Order March 16, 2010 Germany’s Air Berlin has cut the number of airplanes in its firm order for Boeing 787 Dreamliners from 25 to 15, and the number of options from... [more]
Second Boeing 747-8 Freighter Completes First Flight March 15, 2010 The second Boeing 747-8 Freighter, RC 522, completed its first flight yesterday evening, the company announced today. The airplane took off from... [more]
Fourth 787 Joins Boeing Flight-Test Fleet March 15, 2010 Boeing has added the fourth 787 to its flight-test fleet with yesterday’s first flight of Dreamliner ZA003. The airplane departed Paine Field in... [more]