Bombardier

current market drivers

18

Bombardier Business Aircraft | Market Forecast 2011-2030

Business Jet Fractional Order and Delivery Units Units, Calendar years 2001-2010

of flight hours per year, without the obligation to purchase shares in any aircraft.

500

There are four large operators in the fractional ownership industry, among them NetJets and Flexjet by Bombardier. The fractional ownership industry went through a period of fleet rationalisation during 2009, resulting in a substantial reduction of its order backlog. Since then, backlogs have resumed growing; in particular, NetJets placed significant volume orders for new business jets in 2010 and early 2011. The growth in the number of branded charter operators is a more recent trend. These operators offer on-demand flight with competitive trip-specific pricing. Branded charter operators are characterized by sophisticated operations infrastructure, and greater use of airline-style scheduling practices in order to minimize deadhead costs. In 2008, branded charter operator orders represented approximately 20% to 30% of total business jet orders. In 2009, the after- math of the economic downturn caused branded charter operators to resort to order deferrals and cancellations. Larger operators, such as VistaJet and Comlux , have returned to growth and have placed orders for addi- tional business jets in 2010 and early 2011. Fractional and branded charter operators

300

100

-100

Order and Delivery Units

-300

-500

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Fractional Orders

Fractional Deliveries

Fractional operators includes: Flexjet, Netjets, CitationAir, Flight Options. Sources: Deliveries from Ascend; Orders from competitive intelligence. Excludes Very Light Jet and Large Corporate Airline categories.

are returning to growth and are expected to account for approximately 10% of business jet deliveries over the next 20 years.