Bombardier Aerospace plans to raise production of its commercial aircraft by about 10 percent this year, the manufacturer announced last month. The increase comes as the company continues to enjoy relatively strong demand for its Q400 turboprop, while the backlog for its CRJ line of regional jets dwindles.
Science and technology in Canada
Bombardier Aerospace has missed its January 31 target for converting a letter of interest (LOI) for “up to” 60 C Series airliners from Lufthansa, leaving the program devoid of orders some seven months after the official launch during last year’s Farnborough Air Show. However, Bombardier and Lufthansa continue to assert that plans remain in place to convert the LOI in due course.
Bombardier Aerospace plans to raise production of its commercial aircraft by about 10 percent this year, the company announced yesterday. The increase comes as the company continues to enjoy relatively strong demand for its Q400 turboprop, while the backlog for its CRJ line of regional jets dwindles.
Montreal-based Bombardier Aerospace last year delivered 239 business jets, seven more than the previous year, and further took net orders for 262 more, though it is girding for a tougher 2009. The aircraft manufacturer said today that it expects to ship about 10 percent fewer business aircraft this year due to the global recession.
On Thursday, Bombardier reported a year-over-year revenue increase of 22 percent, to $4.9 billion, in its second fiscal quarter ending July 31, thanks in large part to its aerospace division. The company’s aerospace division contributed $2.5 billion of these revenues in the quarter, up from $2.2 billion in the same period last year.
General Electric has purchased the bulk of Bombardier Capital’s corporate aircraft leasing and financing business. The selling price of $339 million represents the “book value” of the loans and financial leases outstanding, Bombardier said.
The National Research Council of Canada signed a five-year memorandum of understanding (MoU) with EADS last month to cooperate on aerospace research and technology development.
Bombardier announced here yesterday the long-anticipated launch of its C-Series family of single-aisle airliners. The company also revealed that final assembly will occur in Mirabel, Quebec, laying to rest any speculation that production would move south of the U.S.-Canada border, specifically to Kansas City. Bombardier president and CEO Pierre Beaudoin called it “an historic day for Bombardier.”
Among all the factors that influence a buyer’s decision to purchase one business jet over another, brand loyalty is well recognized as one of the strongest. Citation owners, looking to replace or add another steed to their stables, usually buy another Citation. Falcon owners, for the most part, buy another Falcon. And Gulfstream owners generally buy Gulfstreams.
The business jet industry “remains strong,” according to newly appointed Bombardier president and CEO Pierre Beaudoin, who released first quarter financial results during an investors conference call yesterday. Revenues for Bombardier Aerospace increased 5 percent, from $2.26 billion in the first fiscal quarter last year to $2.38 billion in the same period this year.