BOMBARDIER MARKET REPORT CAUTIOUSLY OPTIMISTIC
Movements in the Morgan Stanley Capital International (MSCI US) Index are reflected with virtually no time-lag in the sales charts for business jets. All the indicators suggest that 2009 and 2010 will be difficult years. Accordingly, Bombardier is expecting a sharp drop in the number of machines sold. Having said that, the Canadian firm’s forecast is by no means a crisis report. Demand for pre-owned machines remains buoyant; and a five year-old aircraft still generally brings in more than its as-new cost. The markets in Europe and Asia are still expanding rapidly too. Whereas only 30 percent of total output was exported as recently as 2003, the figure has jumped to 55 percent in just four years. And experience shows that fast-growing markets still generate follow-up orders even when belts are being tightened. Bombardier expects production to decline to 380 units in 2009 before bouncing back up to 540 aircraft in 2017. In India and China, the number of dollar millionaires rose last year alone by more than 20 percent. As both the subcontinent and the Middle Kingdom press ahead with moves to develop their infrastructures, Bombardier anticipates that orders from either country will increase to around 50 per annum.
Bombardier’s predictions are confirmed by the offerings of key players in this niche market, almost all of whom are taking to the skies with a whole spectrum of new products. Broadly speaking, the market for private jets should also benefit from customers’ -relish for all things innovative: At comparable prices, new models deliver significant improvements in terms of range, environmental impact and comfort. New marketing models and sharing strategies should likewise have a powerful influence.
For the market as a whole, the Bombardier report forecasts that 13,200 aircraft will sell for a total of 300 billion US dollars.0Need at least 3 ratings