Bombardier has handed over the 50th Global 7500, marking a maturation in the production of the ultra-long-range twinjet that is a cornerstone for the company’s future. Announced today, the milestone delivery comes a little more than two years after the aircraft entered service in late 2018 and follows a year in which Bombardier had delivered 35 of the model, including 16 in the fourth quarter alone.
Bombardier president and CEO Éric Martel called the Global 7500 an “industry flagship and a key driver of our growth strategy.” He added, “The caliber of workmanship and technology found in each aircraft continues to drive strong market demand and industry-wide recognition.”
Bombardier said worldwide interest and market activity have remained strong for the 7,700-nm aircraft. The in-service fleet has achieved a dispatch reliability rate of 99.7 percent and has marked various speed and distance records, including the longest city-pair flown by a purpose-built business aircraft, linking Sydney, Australia, and Detroit.
Importantly for Bombardier, Global 7500 deliveries are reaching a steady run-rate, the company said, adding it is progressing swiftly through the program’s learning curve. The aircraft is integral to the company’s plan to improve profitability long-term. As the Global 7500 reached its 50th delivery, it was turning “from negatively impacting earnings to being the biggest EBITDA contributor over the next five years,” Bombardier executives told analysts during a recent investors day.
The executives expect that costs of production will drop by 20 percent over the next 50 aircraft. “We’ve already achieved a 40 percent reduction” in the first 50 aircraft, the bulk derived from labor costs involved with the learning curve of the build, Martel said. “The program continues to mature as planned. Many of the typical early growing pains and ramp-up risks are now in the rearview mirror.”