Bombardier

current market drivers

17

Bombardier Business Aircraft | Market Forecast 2011-2030

New Aircraft Programs Continued progress, notably in engine specific fuel consumption, avionics and aerodynamics allows aircraft models from the latest generation to offer for a comparable price, more range, performance and features than those of the previous generation. The launch of new airplane programs reflects OEMs’ ability to apply the latest technology breakthroughs to their product lines, the market need for more performing aircraft, and the OEMs’ confidence in the marketplace going forward. Three aircraft were launched in 2010, including Bombardier’s Global 7000 and Global 8000 jets. Fractional and Branded Charter Demand Fractional ownership (where several users acquire a portion of the same aircraft) has existed since the mid-1990’s and has accounted for 10% to 15% of industry yearly deliveries on average. In the period from 1995 to 2010, fractional operators took delivery of over 1,150 corporate jets. Subsequent variations of this business model include “fractional card” or “jet card” programs whereby customers obtain on-demand access to a business jet by committing to a predetermined number

Entry Into Service of New Programs Entry into service by model, calendar years 2011-2017

2017

2011

2012

2013

2014

2015

2016

Global 8000

Global 7000

Citation Ten Learjet 85 Legacy 450 Falcon 2000S

G250

G650 Global Vision Hawker 200 Legacy 500

Sources: Dates of entry from competitors’ press releases and trade media coverage.

Air Travel Options

Commercial-aviation offering

Business jet market

On-demand service

Business jet ownership

+

Full ownership

Per

Year

Fractional ownership

-

Jet-card programs

Branded Charters

Air Taxis

First-class commercial airlines

Commercial airlines

Low cost airlines

Personalized service

Source: Bombardier’s internal research department.