Speaking at a Barclays industrial conference in Miami, Bombardier Inc’s CFO John Di Bert gave a strong indication that the market for the higher-end business jet was now favored sellers instead of vendors, which it had done since the economic and financial crisis in 2008.
“You’re starting to see that turn into being a bit of a sellers’ market on the used side, for good aircraft anyway,” he told the Barclays industrial conference. “That absorbs a lot of demand that was out there.”
He also confirmed that the company’s previous stock of pre-owned jets, valued at US$500 million and which comprised jets taken in as part exchange for the purchase of new aircraft, had all been sold.
A number of business jet manufacturers have become aware of the shortfall in available pre-owned aircraft and, as a consequence, expect demand for new jets to increase. In 2017 demand for these jets grew 1.3 per cent to 676 from 667 units, based on figures released this week from the General Aviation Manufacturers Association (GAMA).
Bombardier Chief Executive Alain Bellemare also told the conference he anticipates improving interest from the United States, Russia, China and the Middle East to increase demand for top-end business jets above the current market of about “60-ish” jets per annum.
Bombardier’s ultra-long-range Global 7000 should enter service later this year, as a challenge to the Gulfstream 650, which is currently the only jet at the high end of the market.
Bellemare also confirmed that the company would wait for the Global 7000 to enter service before deciding whether to proceed with commercial manufacturing of its sister business jet, the Global 8000.
