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Four More Years Of Growth In The Business Jet Sector Predicted
Bombardier’s ten year forecast, released recently, predicted an additional four years of strong growth in the already booming private business jet industry. The demand for planes is expected to continue increasing for the next four years, but additional industry players are expected to enter the booming market to meet that demand.
Following the four years of growth, Bombardier expects levels to remain relatively constant for the next 6 years following that.
The picture is less positive for regional jets, and Bombardier calls the next ten years both risky and uncertain for this sector of the industry.
Business jets have been in huge demand and selling prices are rising quickly as the wait for a new jet has risen to two years.
Bombardier believes that the market will demand 9950 corporate jets through the year 2016. This is good news for Bombardier as the company has been reeling since a change in flight behaviors after 9/11 has lessened demand for its regional jets. Last year saw the Mirabel plant produce only 50 planes, down from 80 the year before
Bombardier’s forecast predictions have matched predictions made by other major industry players. Although bombardier uses a longer 20 year forecast for its commercial jets, in comparison with the industry standard 10 year prediction. This longer 20 year prediction has US needs for larger planes doubling and expects China to emerge as a major buyer in response to the travel problems that the country is facing.
Bombardier expects the market to require 11200 larger jets over the next 20 years
Bombardier expects 4300 60-99 seater jets to be delivered over the same period, and says that Chinese and Russian companies are likely to emerge as major players in this segment
The 100-149 seater jet segment is expected to need 5900 jets over the same period.
Bombardiers share prices rose 8 cents yesterday in response to its market forecast. Bombardier is one of the world’s largest aviation companies and supplies very small business jets up to the largest commercial aircraft
