Bombardier bullish on Asia regional market

Canadian aircraft manufacturer Bombardier sees Asia Pacific as the coming market in the global regional aircraft sector.

Currently Asia Pacific is the second largest intra-regional airline market with a 2006 worldwide capacity share of 27%, second to North America’s 33%. Trung Ngo, vice president, marketing and communications, says: “Asia Pacific will very soon take over the number one spot, maybe even before 2020, and is a significant market for any manufacturer.”

China has the highest percentage of orders and aircraft in operation throughout the region, but the regional aircraft percentage is only 21%, compared to a 50:50 split in North America.

“We have to look at the market as it will be, not as it is today,” says Ngo. “Regional aircraft will grow, and grow very fast. We’re bullish because regional capacity its half that of North America and Europe, maybe less. There is nothing to justify the low-level of regional aircraft here. Asia Pacific will catch up over time.”

Bombardier forecasts a worldwide net addition of 5,500 aircraft of up to 149 seats over the next 20 years, and that Asia Pacific and China will be the second-largest market for these aircraft, accounting for 3,000 aircraft.

Ngo says: “There is congestion on major trunk routes in China, and this could encourage the authorities to encourage regional aviation to relieve the congestion around Beijing and Shanghai. This means there is the potential to create more point-to-point services and therefore there is the potential for an increase in regional aircraft.”

“We are the market leader in regional aircraft. We have sold more regional jets and turboprop aircraft the world over. We have a healthy backlog of orders which allows us to be competitive. This means airlines can make money has a backlog of 157 CRJs and 113 Q Series aircraft. And it is looking to launch the Q400X, a stretched Q400 offering 90 seats. “The Q400X, if it is launched, would be the largest turboprop available within the past twenty years,” says Ngo.

Bombardier is already involved in China through its partnership with AVIC 1 subsidiary Shenyang Aircraft, which already manufactures the Q400 fuselage. Ngo does not believe AVIC 1’s own CSeries and ARJ aircraft will be in direct competition.

“We see AVIC 1 as becoming one of the major players in the worldwide aviation industry,” says Ngo. “The CSeries will incorporate technology that isn’t available today, whereas the ARJ21 is using the GE CF34, the engine technology, and the technology for everything else will be what is available in 2011-12. The ARJ21 only uses what is available now.”

Source: FlightGlobal.com