Bombardier expects soft demand in the near-term for its wide-ranging portfolio of business jets, as executives re-assess the positioning of the Learjet 75 and put off making any decisions about the Global 8000 for at least a few years.
The Montreal-based manufacturer delivered 42 business jets in the second quarter, including only 14 of the Global 5000/6000 family as the company executes a planned rate reduction.
The company has maintained a book-to-bill ratio of nearly 1 through the first six months of the year, with 70 net orders almost balancing deliveries of 73 jets, including 28 Globals, 39 Challengers and six Learjet 75s.
A near-term “softness” in demand, particularly for light jets, is focusing attention on the future of the Learjet 75. After delivering 32 last year, Bombardier is on track to deliver less than half that in 2016.
“In response, we are looking at how we best position the Lear 75 in this environment,” says Alain Bellemare, chief executive of Bombardier.
Bombardier introduced the Learjet 70 and 75 in 2013, upgrading the cabin, flightdeck and interior of the Learjet 40/45. It competes in the “super-light” business jet category, facing competition from the Cessna Citation XLS+ and the fly-by-wire Embraer Legacy 450.
John DiBert, Bombardier chief financial officer, says a “decent” production rate for the Learjet 75 is 20-25 aircraft. “We’re focused on selling planes in the second half,” he adds.
Meanwhile, Bombardier is making no firm schedule or marketing decisions about the developmental Global 8000, an outliner in the industry offering 7,900nm range. Its more near-term sister aircraft, the Global 7000, is scheduled to enter service in the second half of 2018 with 7,300nm range, or slightly less than the maximum endurance of the Gulfstream G650ER.
Bellemare says reports that the Global 8000 could be cancelled are not accurate. But he’s also careful not to make any promises about the future of the ultra-long-range model.
“Right now the only thing we are focused on is to make the Global 7000 a huge success,” Bellemare says. “Then we’ll decide what we do with the Global 8000.”
The Global 7000 is on track to meet its schedule, but Bombardier is still working to resolve “challenges” with wing supplier Triumph Aerostructures. Last year, Bombardier announced a redesign of the wing to improve the aircraft slow-speed and maximum cruise performance.
“There’s absolutely no reason to believe we’re not going to stay on schedule in 2018,” he says.
Bombardier plans to ramp up to full-rate production on the Global 7000 as quickly as possible. The ramp-up plan is being formulated “as we speak”, Bellemare says, and it’s too early to commit to a timeline.
Source: FlightGlobal.com
