GRAHAM WARWICK / WASHINGTON DC

But manufacturer expects business jet market to remain difficult as deliveries decline from 2001-2 figures

Bombardier's regional aircraft deliveries will increase this year, but the Canadian manufacturer is offering no projections for 2003 or 2004. The company expects to deliver 226 regional jets and turboprops in its 2002-3 financial year, up from 206 in the year ended 31 January. But, because of fewer business jet sales, Bombardier's delivery total will stay at the same 370-aircraft level as in 2001-2 and 2000-1.

Announcing revenues for 2001-2 of C$21.6 billion ($13.7 billion), up 36% over the previous year, and income before special items of C$1.7 billion, up 17%, president and chief executive Bob Brown says Bombardier booked orders for 206 regional aircraft last year. CRJ regional jet production "is virtually all sold out for 2003 and 60% sold for 2004", he says.

Brown says the company plans to deliver 145 CRJ200 50-seaters and 45 CRJ700 70-seaters in 2002-3, in addition to 36 Dash 8Q regional turboprops and four Bombardier 415 amphibians. Business jet deliveries will decline to 140 aircraft, from 162 aircraft in 2001-2 and 202 in 2000-1.

After 11 September, when Bombardier lowered its delivery forecast from 420 to 370 aircraft, the company had expected its regional aircraft sales to suffer the most. Instead, more regional aircraft and fewer business aircraft than expected were delivered. Brown expects regional aircraft orders to pick up "towards the end of this year or the start of next", but the business jet market "will be difficult for longer".

Brown says Bombardier is "not interested in acquiring Fairchild Dornier". Nor is it concerned about Boeing gaining control of the rival regional jet manufacturer.

Despite flat deliveries, Bombardier's aerospace revenues for the 2001-2 financial year increased 14% to C$12 billion, with income before special items reaching C$1.2 billion and year-end order backlog edging up slightly to C$23.7 billion. A greater proportion of larger aircraft and higher sales of used aircraft boosted revenues, but depressed margins.

Special charges included C$264 million to write off development costs on the Q400 regional turboprop and C$69.5 million to reduce aerospace employment by 1,100. Bombardier "is still committed to turboprops", says Brown.

Objectives for 2002-3 include reducing debt-to-capital ratio from 42% to 30%. Brown expects 10% earnings growth for 2002-3.

Source: Flight International