Monday, October 18, 2010

Bombardier's new business jets

A plan by Bombardier to expand its family of Global Express business aircraft is expected to be costlier than mere tinkering with the existing design, industry analysts said Monday.The Montreal-based aircraft and train maker announced Saturday that it will offer two Global aircraft that combine longer distances with improved fuel efficiency and increased comfort. The new Global 7000 and 8000 will be available for delivery in 2016 and 2017 respectively. Analysts welcomed the move, saying it will help Bombardier (TSX:BBD.B) to protect its global leadership in the business aircraft market and fend off competition from Gulfstream's new G650.

The planes will come with a price tag of around US$65 million, compared to just under US$60 million for the G650 and US$53 million for the Global Express XRS.Bombardier has not yet disclosed the development costs of the planes. But Cameron Doerksen of National Bank Financial said they will likely require more spending than would a simple derivative, which has been estimated to cost at least US$300 million. Designing an entirely new plane would cost about $1 billion.

The new aircraft will feature a newly designed wing and use the new General Electric TechX engine.
The fuselage design is expected to be largely the same as the current Global family and feature a Global Vision flight deck which is being developed for existing Global planes.Bombardier is currently focused on developing its new Learjet 85, CSeries commercial jet and CRJ1000.The aircraft manufacturer should have adequate financial resources to develop the new planes since development of these programs will be winding down as the new Global program is ramping up, Doerksen added in a report.

1 comment:

  1. Private jet manufacturing industry is in a competitive phase. With Gulfstream and Cessna launching revamped and faster planes, Bombardier's Global 7000/800 will be a strong competition