Jet orders will slow: Bombardier

Laurent Beaudoin, chairman of Bombardier Inc., said Friday new orders for business jets will slow over the next few quarters because of the global economic crisis and the difficulties some customers face in finding finance.
Speaking after the opening of a new Bombardier railcar plant in India, Beaudoin said Bombardier is confident it can maintain its regional aircraft and business jet order backlog at about $20 billion U.S. in the coming downturn. It does not give a breakdown but business jets are dominant.
Beaudoin confirmed some customers want to delay business jet deliveries because they can't raise enough cash and the company can switch production slots to other customers wanting earlier deliveries. But along with rivals Gulfstream, Hawker and Cessna, Bombardier downplayed reports of order cancellations.
Bombardier expects to keep deliveries rising through 2009 because of its big backlog. Buyers still have to wait four years or more to get delivery of a completed Global Express XRS listing at $50 million U.S.
But UBS analyst David Strauss noted used business jet inventories are running 57 per cent above year-earlier levels, nearing the 2002 peak after the 9/11 crisis, and prices are falling. New aircraft delivery positions for sale in October were up 19 per cent from September, confirming lower demand and tight financing. "We see a significant slowing in new orders."
14/11/08 The Gazette (Montreal), Canada

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Categories: Foreign Nov 2008