The Canadian jet maker Bombardier (BDRAF, Financial) is a well-known name in the aviation space. Apart from being a prominent entity in the commercial aviation space, Bombardier also excels in manufacturing business jets. In fact, the company was the top business jet seller, in terms of revenue, for straight eight years, between 2005 and 2012. It was only recently in 2013 when Gulfstream, the aviation arm of General Dynamics (GD, Financial), dethroned the Canadian firm to become the top business jet seller, on the back of the stupendous demand for its flagship G650ER jet.
A lowdown on the business jet situation
The year 2013 was a different year for Bombardier. Despite selling more number of jets, the company ended up in the second place since Gulfstream’s total value of deals was more. The primary reason was the huge hype surrounding the $65 million worth G650/ER. The jet was able to mesmerize the elites of the world and for them it turned out to be a must have, a symbol of status and wealth. Gulfstream was able to tap into the growing demand for faster and larger business jets at the right moment. The popularity of the jet has reached such a level that existing owners who has just got their hands of the jet are ready to sell it off at a $10 million to $15 million premium - a very popular concept known as aircraft flipping.
How Bombardier plans to stir up things
In absence of suitable jet models, Bombardier missed out on the initial opportunity. But, the ace jet maker is not ready to give up and is working on two jet models – Global 7000 and Global 8000. Both the jets belong to the large business jet category, capable of flying great distances at ultra-high speeds. So far Bombardier has been earning a third of its business aviation revenues from larger jets and the balance from small and mid-sized jets. But with the Global 7000/8000 in the picture, analysts expects the contribution of larger jets to shoot up significantly.
In order to make the jets compete head to head with Gulfstream’s flagship offering, Bombardier has given the jets features that are much similar to G650. The Global 7000 will be able to travel 7,300 nautical miles (nm) non-stop, will sport a maximum operating speed of Mach 0.90 and will be accommodate up to 17 passengers. Compared to this, the Global 8000 has a better range at 7,900 nm, but will be able to carry a maximum of 13 passengers. Out of the two, Global 7000 is going to be costlier at $75 million, and Global 8000 is expected to carry a sticker price of $71 million.
Both the jets are aimed at that segment of private jet buyers who need to travel longer distances and also like to travel in large groups. Larger private jets seem to be the flavor of the season at Bombardier is putting in all it has to impress the buyers. The Canadian aircraft maker has taken extra care of the cabin space and the interiors provide a posh feeling. At the same time due attention has been given to the engines on the aircraft that will minimize fuel burn and emissions.
