Solid fundamentals

Bombardier has released its annual aircraft market forecasts for the business and commercial aircraft industry, predicting strong long-term growth following a period of market uncertainty.

For the period up until 2018, the group forecasts that business-jet manufacturers will deliver a total of 11,500 aircraft with revenues of around $256bn (£155bn) for the industry driven by a return to economic growth.

However, in the short term, Bombardier believes that the business-aircraft market faces the challenges of high pre-owned inventories, difficult market conditions and negative public perceptions, resulting in fewer orders during the start of the 10-year period.

The group believes that the jet industry is currently strong and will remain so in the long term. As a result, Bombardier said that it intends to maintain its focus on strengthening its position in this area.

At the end of 2008, the worldwide business-jet fleet included approximately 13,600 aircraft. Overall the business-jet industry is expected to increase by a compound annual growth rate (CAGR) of around 5.8 per cent.