MURDO MORRISON / LONDON
Bombardier chief executive Robert Brown says prospects for regional jet sales remain buoyant as the economic downturn prompts US airlines to swap airliners for regional jets. The sector remains the one bright light for Bombardier's aircraft division, which is suffering from slow orders for business jets and Dash 8 Q-series turboprops, and is to cut 2,000 jobs and suspend two production lines.
Regional jets are the only aircraft flying more routes in the USA than before 11 September 2001 and regional networks the only "consistently profitable" parts of many airlines' operations, Brown told a Canada-UK Chamber of Commerce lunch in London last week. He said that between May 2001 and May 2002, more than 550 regional jet routes had been added in the USA. "And still more are being added every week, even in present circumstances," he said.
Brown predicted further structural changes among US airlines as economic realities compel them to reappraise their services, highlighting United Airlines' recent decision to replace two non-stop flights between Chicago and Colorado Springs with five flights from two regional partners operating Bombardier CRJ regional jets. "There is little doubt we will see a re-organisation of the US airline industry that will have a significant influence on the way aircraft are utilised," he said.
Bombardier's strong performance in regional jets and rail equipment would see it turn in "significant profits" for the fiscal year ending in January 2003, he added.
The Canadian company's business aircraft division has been hardest-hit by the economic downturn. It will deliver 100 business aircraft this year, against earlier predictions of 160 deliveries. Brown said the drop in performance was "all related to the economic cycle".
However, he doubted that flagging orders would prompt a rationalisation among the five main business jet manufacturers, noting that Bombardier's strength was in offering aircraft in each sector from the Learjet 31A to the Global Express.
Source: Flight International
