Search site Search ticker symbol

Are you looking for a stock?

Try one of these

Bombardier launching new business jet

A
A
 

Bombardier Inc. (BBD.B-T) will proceed with plans to expand its Global family of large business aircraft and will unveil details next month, the company said on Thursday.

Bombardier, the world's No. 3 civil aircraft maker after Boeing and Airbus, said the new Global airplanes will build on its existing business jets, the Global 5000 and the Global Express XRS.

The Montreal-based company will announce details about the aircraft on October 18 at the National Business Aviation Association convention in Atlanta, Georgia.

"People will regard this as a positive thing and they should," Canaccord Genuity analyst David Tyerman said.

"It's hard to put metrics on it ... We don't know for sure because nobody breaks out profitability by airplane, but as you get up into the very higher end of the market, price sensitivity may be a little bit lower."

The business jet market is showing signs of stability after one of its toughest years in 2009, but industry experts say a return to annual growth in deliveries is at least a year away.

Earlier this year, business jet manufacturers and suppliers said rising flight activity and a steady decline in the number of used aircraft for sale competing with new planes signaled that the market had likely hit the bottom of its decline.

Bombardier was widely expected to announce an expansion of its Global line following the successful 2008 launch of the Gulfstream G650, a large-cabin business jet, Tyerman said.

The timing of the announcement may also reflect the completion of development work on Bombardier's CRJ1000 aircraft, which would free up engineering resources, he said.

Bombardier said earlier this month that the business-jet sector was showing signs of a recovery, based on fewer order cancellations.

That market was hit hard in 2009, when demand tumbled after five years of annual delivery increases as companies restricted spending and tight credit made purchases difficult. Jet makers cut thousands of jobs as orders slumped.

"Our intention is to grow our leadership position and the time is right to move forward with our extended Global aircraft family," Bombardier Aerospace chief executive Guy Hachey said in a statement.

CTV.ca CTV Two CTV News CTV News Channel BNN - Business News Network CP24