ALAN DRON
Major changes are coming in the way the regional airline business operates in North America, believes Bob Brown, president and chief executive officer of the Bombardier Group.
Brown was asked at the show yesterday whether he believed scope clauses, labour agreements that restrict the number and/or size of regional jets an airline can operate, would remain in place or be scrapped.
He foresaw more direct, city-to-city links. This, he said, suited Bombardier, whose aircraft were suited to long, thin routes.
On the vexed question of export financing schemes, over which Canada and Brazil have had a complex, long-running dispute, he said he was confident the WTO would again come down in Canada's favour. A verdict on Canada's dispute with Brazil is due next month, while a determination on Brazil's counter-claim is due in September.
Protect
However, he made it clear that Canada and Bombardier would continue to protect their interests in the marketplace. The Canadian government provided an export support scheme for Bombardier's successful campaign to sell regional jets to Air Wisconsin that mirrored that provided by Brazil for Embraer.
"There are a number of strategic contracts where there's a requirement for us to be competitive. What we should be able to compete on is the ability to present the best product, best product support and best price. Financing shouldn't be a factor.
"We're in a position where we have to keep trying on a number of contracts, particularly on people who are already customers of ours."
He continued to hope the situation could be resolved: "I really hope that we can find a way in the industry more generally to go forward in a more positive fashion. This [situation] is really not necessary."
Asked about the shrinking demand for turboprops, he accepted that the market was "difficult", with only Bombardier and ATR still in the market. He also commented pointedly that Brazil's export financing scheme meant that airlines could buy a jet from the lower end of Embraer's range for the same price as a turboprop and there was clearly a preference for the former.
Range
For this reason, Bombardier had trimmed back planned production of its range of Dash 8 turboprops. Where the Q400 model might have been expected to be selling 36-48 per year at this stage in its life, its production level would remain at around 30. Total annual turboprop production he estimated at 40-45 over this year and next.
However, "I¹m sure the market will be different five to 10 years away and companies will have to be prepared to change. That's why I'm still committed to turboprops."
Source: Flight Daily News
