Bombardier Report: Leading The Way

regional details

Europe

As the most dynamic and diversifed economy around the world, the U.S. should continue to generate wealth and sustain the development of its business aircraft industry in the long term. In May 2009, Moody’s decided to maintain the credit rating of the U.S. because it has “a diverse and resilient economy, strong government institutions, high per-capita income, and a central position in the global economy”. While Canadian fnancial institutions have proven to be stable throughout the recent crisis, Canada has experienced economic decline in 2009, although to a smaller extent when compared to the U.S. According to the latest IHS Global Insight forecast published in May 2009, both countries real GDP are expected to show positive growth in the frst half of 2010. North America is forecast to receive the greatest number of business jet deliveries between 2009 and 2018 with 5,400 units. The 2008 feet of 9,400 business jets will grow to 14,100 aircraft in 2018, resulting in a CAGR of approximately 4%.

are expected to recover once economic growth resumes, which should occur within 12 months after the U.S. The growing European business jet installed base will create a signifcant replacement market in coming years, ensuring that this region will continue to be a major source of demand for business aircraft. Europe will receive the second largest number of business jet deliveries with over 3,000 units in the period from 2009 to 2018. The 2008 feet of 1,700 business jets will grow to 4,500 aircraft by 2018 with a feet growth CAGR of approximately 10%.

In recent years, Europe has emerged as a strong market for business jet orders. Buoyed by the strong Euro – relative to the U.S. dollar – strong economic growth generated by the expanding European Union and the emergence of branded charter business jet operators, Europe accounted for an estimated 34% of worldwide business jet orders in 2008; compared with 29% for North America. The Euro-area economy entered into recession approximately one year later than the U.S. The GDP is expected to decline by 4.3% in 2009, however orders

Bombardier Business Aircraft Market Forecast 2009 - 2018

27