Bombardier Business Aircraft | Market Forecast 2011-2030 - Learjet ...

Bombardier Business Aircraft | Market Forecast 2011-2030 - Learjet ...

historical market performance

Bombardier Business Aircraft | Market Forecast 2011-2030 09

shattered in 2008, with deliveries totalling

927 units for the year. Record sales, as well

as a shift in buyer interest toward larger

aircraft, explain the peak of $19.8 billion

in industry revenue reached in 2008.


The near-collapse of financial markets at the

end of 2008 precipitated a sharp downturn in

business aviation. Order activity stalled beginning

in the last quarter of 2008 and onwards.

The inventory of pre-owned aircraft for sale

increased dramatically and residual values

took a significant hit. Moreover, OEMs juggled

with cancellations and deferrals. We estimate

that more than 800 order cancellations

were recorded in 2009 in the Light to Large

categories. These unfavourable market

conditions forced most OEMs to decrease

their production that same year. The trough,

in terms of market conditions, was reached

in the first half of 2009.

Historical Business Jet Market Revenues

US$B, calendar years 2001-2010

Revenues ($US Billion)



All segments in which Bombardier competes

Sources: Revenues estimated from GAMA and B&CA list prices.

Since H2-2009

Since the second half of 2009, business jet

usage has increased and pre-owned inventory

has been declining. Credit availability has also

recovered. Market fundamentals improved

significantly in the past 2 years; approximately

500 fewer aircraft for sale on the pre-owned

market (a drop of 3.4 percentage points,

to 14.4% in Q1-2011); 22% and 12% more




2001 2002 2003 2004 2005 2006 2007 2008 2009 2010






flight activity in the U.S. and Europe respectively.

Business jet utilization is at its highest

levels since 2007 in both regions.

Recently, we have experienced the resurgence

of multiple aircraft deals. Most aircraft OEMs

are now recording positive net order intake,

signaling that the market has moved to its

second phase of recovery.

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