Bombardier Report: Leading The Way

historical market performance

Throughout history, the business jet market has proven to be highly cyclical. Over the past 40 years, the industry has been defned by multiple up and down cycles. From 1965 to 1995, the CAGR for industry deliveries was 4%, with most of the growth coming from its main market, the United States. After 1995, the business jet industry began expanding to other regions of the world, generating much higher growth, 12% on average. The following section describes the last historical business cycles since 2001. The 2001-2003 downturn was caused by various factors. The high percentage of aircraft for sale on the pre-owned market at the end of the 1990s was the frst sign of a market slowdown. In the U.S., conjectural factors like the slowdown of the economy and the The 2001-2003 Downturn

Historical Business Jet Market Deliveries Units, calendar years 1965-2008

2008

1000

900

800

700

600

CAGR = 12%

500

400

300

CAGR = 4%

200

100

0

65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07

Source: Actual deliveries from GAMA. Very Light Jets include CJ1+, CJ2+, Mustang, Phenom 100, Premier I and Eclipse 500. Excludes ACJ & BBJ.

fall of corporate profts at the end of 2000 and in 2001 considerably reduced the demand for business jets. Business aviation suffered, to a lesser extent than commercial aviation, from the climate of uncertainty that followed 9/11. The reduction in the overall

number of gross business jet orders, coupled with massive cancellations from both traditional and fractional jet businesses, forced Original Equipment Manufacturers (OEMs) to sharply reduce aircraft production.

Bombardier Business Aircraft Market Forecast 2009 - 2018

07