Bombardier Banking on Global 7000 To Boost Revenues

 - December 15, 2016, 12:33 PM
Bombardier Aerospace's new Global 7000 is expected to lift revenues at its business jet division by $3 billion between the twinjet's service entry in 2018 and the end of 2020. (Photo: Bombardier Aerospace)

The new Global 7000 is expected to drive up Bombardier Business Aircraft’s revenues by $3 billion between its service entry in 2018 and the end of 2020, division president David Coleal said today at Bombardier’s investor day. To date, the Global 7000 has logged more than 30 hours over 15 flights, with certification flying to ramp up next year as more flight-test vehicles come online. The aircraft is sold out “through 2020,” he added.

Coleal also said that Bombardier’s business jet division is looking to double its aftermarket revenues from now until 2020. The installed base of Bombardier business jets will climb beyond 5,000 aircraft in 2020, fueling growth in service and part sales, he noted. To help meet this demand, the company is expanding its service network. This includes a new 300,000-sq-ft Bombardier Business Aircraft service center at Hollywood International Airport in Fort Lauderdale, Florida, slated to be finished in 2018.

According to Coleal, Bombardier’s business jet deliveries will remain flat next year at 135 units, though he said the division is “poised” to increase production if business picks up. But after a flat year, Coleal said he is optimistic about the 2018 to 2020 period, when he expects stronger worldwide GDP growth and recovery of emerging markets—events that would improve business jet usage and sales.