|By Marketwired .||
|July 13, 2014 10:01 AM EDT||
MONTREAL, QUEBEC -- (Marketwired) -- 07/13/14 -- Today, Bombardier released its annual 20-year forecasts for the business and commercial aircraft markets.
While the world economy has grown at a slower than expected rate, signs of improvement in the business and commercial aircraft markets have started to emerge. Business indicators are pointing towards a gradual industry recovery. New aircraft orders are supported by continued demand from established markets - such as North America and Europe - and growth potential in emerging markets, which are forecasted to play an increasing role in the global aviation marketplace. China is expected to be the second largest region in terms of commercial aircraft deliveries in the 20- to 149-seat segment, and the third for business aircraft over the next 20 years. Also, as environmental concerns continue to gain importance and high fuel prices add pressure to the bottom line, operators across both industries will remain focused on finding more efficient and sustainable solutions.
"At Bombardier, we have a long and proud tradition of pushing the boundaries of technology, and developing the next generation of aircraft that will better meet the needs of our customers - both today, and tomorrow," said Michael McAdoo, Vice President, Strategy and International Development, Bombardier Aerospace. "As such, Bombardier Aerospace with its new category-defining business and commercial programs is well-positioned to strengthen its leadership position in its current markets."
Business Aircraft Market Forecast
Bombardier is confident in the strong, long-term potential of the business aircraft industry and forecasts a total of 22,000 business jet deliveries from 2014 to 2033 in the segments in which Bombardier competes(i) representing approximately $617 billion US(ii) in industry revenues. Bombardier's Business Aircraft Market Forecast anticipates 9,200 aircraft deliveries, worth $264 billion US between 2014 and 2023, and 12,800 aircraft, worth $353 billion US, from 2024 to 2033.
The market for business aviation continues to show promising signs of recovery. While current macroeconomic indicators are mixed, the overall trend for the world economy is stable to positive. In 2014, the world GDP is expected to grow by 2.9 per cent, with higher growth expected in 2015 onward. Industry order intake saw incremental improvement in 2013 over 2012, allowing the industry to record a book-to-bill ratio of one for the second year in a row. Industry deliveries are expected to increase slightly in 2014 from 2013 based on the delivery guidance of manufacturers and new aircraft programs.
Business aircraft orders are expected to remain challenging in 2014 across the industry, but projected to improve beginning in 2015. It is also anticipated that with demand for business jets shifting towards emerging markets, the fleet of large and medium category aircraft will grow, with the large aircraft category demonstrating the fastest growth.
Over the forecast period, Bombardier predicts North America will receive the greatest number of new business jet deliveries between 2014 and 2033, followed by Europe, which remains the second largest market. China is forecast to become the third largest region in terms of deliveries over the next 20 years with 950 deliveries from 2014 to 2023, and 1,275 deliveries from 2024 to 2033.
Bombardier predicts that - similar to commercial aviation - future challenges facing the business aviation sector include rising fuel prices and increased environmental awareness. To face these challenges, Bombardier continues to invest in innovative, more efficient transportation solutions through its new aircraft development programs that include the Global 7000, Global 8000 and Learjet 85 aircraft.
Commercial Aircraft Market Forecast
The commercial aviation market is profitable and growing, and the industry continues to evolve to manage growth, high fuel prices and increased competition. Over the next 20 years, Bombardier forecasts demand for 13,100 aircraft deliveries in the 20- to 149-seat seat segment valued at $658 billion US(ii).
Bombardier forecasts the following industry deliveries by segment:
-- 20-to 59-seats: 400 aircraft deliveries -- 60- to 99-seats: 5,600 aircraft deliveries -- 100- to 149-seats: 7,100 aircraft deliveries
In the 20- to 59-seat segment, Bombardier anticipates that new aircraft deliveries will continue at a modest pace for the duration of the forecast period as old aircraft are retired and replaced with larger types. The 60- to 99-seat segment will continue to be one of the most dynamic in commercial aviation. It is anticipated that the fleet in this segment will more than double in size with new aircraft deliveries evenly split between large turboprops and large regional jets. The 100- to 149-seat aircraft segment, which has not been the focus of aircraft development for at least the past two decades, will witness a major fleet transformation with the entry-into-service of new clean-sheet aircraft designs.
The global demand for air travel and new aircraft continues to shift towards emerging markets where demand for air travel continues to grow with increasing GDP and an expanding middle class. However, as with the business aircraft industry, North America is expected to lead the way in commercial aircraft deliveries over the forecast period, taking in an expected 3,650 new aircraft, followed by Greater China with 2,280 aircraft, Europe with 1,840, the Asia Pacific with 1,400, Latin America with 1,100 aircraft, the Commonwealth of Independent States (CIS) with 830, India with 760, Africa with 700, and the Middle East with 540.
Aircraft in the 20- to 149-seat segment have a vital role to play in the development of new markets, non-stop connections and increased frequencies; 70 per cent of the world's short- to medium-haul markets serve between 50 and 250 passengers per day each way (PDEW), and are best served by 20- to 149-seat aircraft.
With its Q400 NextGen turboprops, CRJ NextGen regional jets and CSeries aircraft, Bombardier has created products that will meet its customers' growing demand for sustainable transportation solutions that feature a reduced environmental impact.
Bombardier is the world's only manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.
Bombardier is headquartered in Montreal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America Indexes. In the fiscal year ended December 31, 2013, we posted revenues of $18.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
Notes to Editors
Follow @Bombardier_Aero on Twitter to receive the latest news and updates from Bombardier Aerospace.
(i) Bombardier's competitive segmentation includes Light, Medium and Large categories. Excludes very light jets and large corporate airliners.
(ii) Unit values are based on B&CA magazine 2013 list prices expressed in US$.
Bombardier, CRJ, CSeries, Global 7000, Global 8000, Learjet 85, NextGen, Q400 and The Evolution of Mobility are trademarks of Bombardier Inc. or its subsidiaries.
This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, guidance, targets, goals, priorities, our market and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; our competitive position; and the expected impact of the legislative and regulatory environment and legal proceedings on our business and operations. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "plan", "foresee", "believe", "continue", "maintain" or "align", the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. While we consider our assumptions to be reasonable and appropriate based on information currently available, there is a risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the respective Guidance and forward-looking statements sections in Overview Aerospace and Transportation sections in the Management's Discussion and Analysis ("MD&A") of the Corporation's financial report for the fiscal year ended December 31, 2013.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include risks associated with general economic conditions, risks associated with our business environment (such as risks associated with the financial condition of the airline industry and major rail operators), operational risks (such as risks related to developing new products and services; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; the environment; dependence on certain customers and suppliers; human resources; fixed-price commitments and production and project execution), financing risks (such as risks related to liquidity and access to capital markets, exposure to credit risk, certain restrictive debt covenants, financing support provided for the benefit of certain customers and reliance on government support) and market risks (such as risks related to foreign currency fluctuations, changing interest rates, decreases in residual values and increases in commodity prices). For more details, see the Risks and uncertainties section in the MD&A of the Corporation's financial report for the fiscal year ended December 31, 2013. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect our expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
CAUTION REGARDING NON-GAAP MEASURES
This press release is based on reported earnings in accordance with International Financial Reporting Standards (IFRS). Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. It is also based on non-GAAP financial measures including EBITDA, EBIT before special items, EBIT margin before special items, adjusted net income, adjusted earnings per share and free cash flow. These non-GAAP measures are directly derived from the Consolidated Financial Statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our Consolidated Financial Statements with enhanced understanding of our results and related trends and increases transparency and clarity into the core results of our business. Refer to the Non-GAAP financial measures section in the MD&A for definitions of these metrics. Refer to Non-GAAP financial measures and Liquidity and capital resources sections and Analysis of results sections in Aerospace and Transportation of the Corporation's MD&A for reconciliations to the most comparable IFRS measures.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Sep. 2, 2015 05:30 PM EDT Reads: 257
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on demos and comprehensive walkthroughs.
Sep. 2, 2015 04:45 PM EDT Reads: 387
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so they don't have to be replaced and are instantly converted to become smart, connected devices.
Sep. 2, 2015 04:15 PM EDT Reads: 207
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Sep. 2, 2015 04:15 PM EDT Reads: 347
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
Sep. 2, 2015 04:00 PM EDT Reads: 276
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
Sep. 2, 2015 04:00 PM EDT Reads: 1,577
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...
Sep. 2, 2015 04:00 PM EDT
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Communication) is an open source project supported by Google, Mozilla and Opera that aims to enable bro...
Sep. 2, 2015 03:45 PM EDT Reads: 1,559
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Sep. 2, 2015 03:30 PM EDT Reads: 1,640
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Sep. 2, 2015 03:15 PM EDT Reads: 623
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing these ideas and some early experiments performed in the Kurento open source software community in areas ...
Sep. 2, 2015 02:15 PM EDT
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Sep. 2, 2015 02:00 PM EDT Reads: 264
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Sep. 2, 2015 01:30 PM EDT Reads: 938
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
Sep. 2, 2015 12:45 PM EDT Reads: 194
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Sep. 2, 2015 12:15 PM EDT Reads: 414
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
Sep. 2, 2015 11:30 AM EDT Reads: 1,997
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Sep. 2, 2015 11:15 AM EDT Reads: 185
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
Sep. 2, 2015 11:15 AM EDT Reads: 494
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
Sep. 2, 2015 09:00 AM EDT
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as soon as they are needed to take action.
Sep. 2, 2015 08:45 AM EDT