Bombardier recently announced that their all new CS100 and CS300 aircraft are exceeding expected targets for fuel burn, payload, range, and performance and are on track to meet noise targets. The ‘C Series,’ as they are dubbed, are intended to be the quietest commercial jets ever produced — well below the FAA’s Stage 4 limit, and could give the Canadian company a lucrative boost.
During the aircrafts’ debut at the Paris Air Show in June, Bombardier execs reported they expect the smaller CS100 model to be certified by the end of the year, with the certification of the CS300 due to follow soon after. If the C Series performs as well as expected, a larger CS500 model could be on the table in the future.
So far, the company reports 243 firm orders, with two-thirds of those orders for the CS300. However, Moscow-based Ilyushin Finance Co. said it is re-evaluating its order for the new plane as Canadian sanctions against Russia are severely limiting financing options. So there is some doubt as to the viability of the total order count, and continued clamor for delayed planes is testing the patience of eager customers.
With falling oil prices and competitors following closely behind, it’s clear that the C Series is critical to Bombardier’s future. Still, the performance of the C Series is better than advertised while also offering a best-in-class cabin with the ability to carry up to 15 passengers, increased convenience, passenger comfort, and superior profitability.
In addition, Bombardier showed strong emphasis on larger seats, bigger overhead bins, and even specialized window designs that give the plane a wide-body feel while offering operators potential savings between $7.5 and $12 million per aircraft. In the end, the C Series family of aircraft represents a beautiful fusion of performance, technology, and luxury that’s sure to appeal to a number of people with the money to spend.
Contact L & L International if you need assistance in purchasing or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1.305.754.3313, or visit us online.
Hot off the runway and causing an industry stir is Bombardier’s new Learjet 85, which is scheduled for delivery in 2013. The slick new aircraft, assembled in Wichita, Kan., is constructed almost exclusively of composite materials, promising increased aerodynamic efficiency, easier repair and maintenance, and a longer plane life.
The aircraft has seating for up to eight passengers and a range of up to 3,000 nautical miles. As the largest Learjet available, the cabin interior features 30” of legroom and double club seating that fully reclines, making the comfort of the passenger a top priority.
The Bombardier cockpit includes a state-of-the-art avionics system designed to reduce demands on the pilot. Thanks to advanced navigation equipment, pilots have instant access to graphical flight planning, weather conditions, and enhanced maps right at their fingertips. The ultra-efficient PW307B engine provides increased fuel efficiency and decreased noise output.
Other appointments include a Cabin Management System (CMS) with wireless cabin controls, plus luxury features like an iridium phone and XM satellite radio capability. The ergonomic interior also includes personalized LED lighting and a large galley space.
Take it for a virtual test flight to get ready for the Learjet 85 release in 2013.
A recent outcry about Xcel Energy, a leading utility company that operates in eight states, reminded the American public of the day back in November 2008 when the executives of the Big 3 auto companies flew private jets to Washington, D.C., to request an immense taxpayer bailout.
Xcel Energy just asked for a $142 million rate increase from its Colorado customers. Of that, $1.1 million is to pay for the leased corporate jets (two Bombardier Learjet 45s). Xcel Energy services 1.4 million electric customers in Colorado. While $1.1 million for private jet expenditures sounds like a lot of money, when it is divided by the 1.4 million electric customers, each one would pay $0.78, or $0.07 per month.
People don’t usually get this worked up about $0.78. You can’t even buy something from a vending machine for that price. But private jet travel tends to cause a knee-jerk reaction from many individuals — assuming unbridled greed and luxury on the part of corporate executives. Nearly every news outlet in Colorado is covering the story. (You could argue that the only bigger story is whether Peyton Manning will be wearing a Broncos jersey next year!)
Certainly Xcel Energy has figured out that leasing two private jets is an economical choice for its travel needs. The problem here is that the public utility hasn’t explained the use of the jets in a way that makes sense to people. The only explanation that the news media give is that executives must commute between Denver and Minneapolis, and that seems ridiculous to most readers. After all, most workers don’t get paid for commuting time or compensated for fuel.
Surely Xcel Energy’s public relations department can do a better job of explaining the use of the jets. Private jets save time, and time is money. This public perception that private jets are extravagant luxuries hurts the entire private jet market, from pre-owned jet sales to orders for new ones. Many companies feel they shouldn’t have to justify their private jet use, but crafting a message that improves the common perception benefits everyone.
The slow and bumpy market recovery for business aircraft is expected to continue into the next decade, according to a report from Forecast International, a Connecticut market research firm. Sputtering U.S. and European economies have forced demand for business jets lower than the rising demand for private aircraft in the Middle East, Brazil, Russia, India and China.
Here are some highlights from Forecast International’s study.
- The most substantial build growth rates won’t be seen until 2013.
- Long-range, large-cabin jets see the most demand.
- Between 2011 and 2020, 10,907 jets will be produced, worth an estimated $230.3 billion
Several new designs are in the works, and industry analysts expect them to both enjoy high sales in the improving economy and to stimulate the aircraft industry. Click the links below to see pictures of the exciting new designs.
Speaking of Bombardier and the improving bizjet market, the Canadian aircraft company reported its 2011 third quarter earnings on Dec. 1, 2011. The news is generally good, with Bombardier posting revenues of $2.3 billion in the third quarter, up from $1.8 billion from the same period last year.
While the business jet market certainly isn’t skyrocketing or experiencing the levels of 2008, the increase in orders and demand seen recently demonstrates a sustainable pattern of growth that those in the business jet industry should be excited about. Happy New Year!
Check out these great jets available from L and L International. Please contact us with any questions.
We continue to get good news from the industry and this is a trend at the EBACE event in Geneva, Switzerland. The latest in good news comes from VistaJet a Swiss business jet operator. The company announced today at the event that they have an order for 18 Bombardier business jets, which will bring its fleet to more than 50 aircraft.
It is reported that the order, valued at $383 million, includes 12 Globals and Challengers and six Learjet 60 XRs. Deliveries of the order should begin in 2012. The founder, owner and the chairman of VistaJet, Thomas Flohr, in a statement said his company’s current order backlog is valued at $1.3 billion. It is also reported that the company has on order currently, 10 Global 6000s, six Challenger 605s, 11 Learjet 85s and six Learjet 60 XRs. VistaJet operates a Bombardier-only fleet. Flohr stated out that 75% of the operator’s flights now originate from or go to “fast-growth markets,” such as Brazil, Russia, India, Nigeria, China and the Middle East. This shows in increase of 50% over this period four years previous.
Flohr stats that 2011 is “off to a good start,” he reported that 20101 saw a 25% increase in revenues over the previous year. Flohr revealed that approximately 20,000 passengers traveled aboard VistaJet aircraft last year. Flohr stated the company is “centered on [the passengers] actual requirements, rather than a perceived desire for abstract ownership.”
Embraer joins in the news at EBACE when it received an order today and announced at the event that Comlux has placed an order for three of the Embraer Lageacy 650’s with the possibility of increasing the order for 4 more of the aircraft. This marks the very first order for the Legacy 650’s from Embraer from this company. The company only has on hand at present aircraft from Airbus and from Bombardier. Embraer will deliver the first aircraft in December, with the remaining two Legacys to be handed over early next year.
Comlux Kazakhstan currently has four aircraft in its fleet which includes two Bombardier Challenger 605s and two Challenger 805s. The company’s COO, Irina Pay, reported that Comlux is located in a perfect place between Russia and China, which makes it a the best place for a charter operator of its kind. Comlux Kazakhstan also provides aircraft dispatch, ground handling and flight operations services.
It was only a few years ago that Embraer was a minor player in the corporate jet industry with only a 3 percent share. It is making great strides recently in the business aviation industry having gained that number to nearly 20%. The company that is based in Brazil is taking the line of mid-size jets it manufactures in the Legacy 450 and 500 jets, the Phenom light jets and the Legacy 650 jets, Lineage 1000 jets to new levels that they hope will help them gain their goal of a 30% share of the business jet market.
Recently, the company opened a new final assembly facility in Melbourne, Florida, and the CEO of the company, Fred Curado indicated that he was very happy with the manufacturer’s position in the industry of business jets. In fact, he recently revealed that he hopes to expand further.
“I do see Embraer one day venturing into the ultra-long-range, large-cabin business jet segment,”he told AIN in an interview. He stated in that recorded interview, their line would compete “with the [Bombardier] Globals and the larger [Dassault] Falcons,” he said.
These are good signs of growth for the industry and it will be interesting to see if Embraer expands to the levels it seeks in the business aviation industry.
I talked earlier about the fact that the holidays were over for charter jet companies, however, it does seem that at least one wholly owned company in the charter jet world is seeing growth over this time last year. XOJet, based out of Brisbane and California, is reporting that they are up 50% over the same time last year and in fact they are increasing their fleet to meet the demand. They are adding to their fleet to meet the demands of customers by adding a Bombardier Challenger 300 series and has added last month its first ever Challenger 605. The company is reporting that it plans to add additional jets in its fleet in the future in 2011.
As a company they have increased its numbers by 50% but in the large market cities of Los Angeles, New York and San Francisco it has seen larger numbers. The commercial operations leader of the company, Brad Stewart has stated:
“Our growth in New York, Los Angeles and San Francisco continues to accelerate, with all three markets growing more than 70 percent in recent months and exceeding 80 percent overall growth in November.”
I hope XOJet continues to see the growth in its industry and they continue to be a leader in chartered jets.
Bombardier is joining the announcements coming out of the National Business Aviation Association in Atlanta this week. Bombardier is introducing two new jets that are geared for long range. The Global 7000 and the Global 8000. The Global 7000 is the larger of the jets and has a 7300 nautical mile range. The Global 7000 is a four zoned cabin jet. The Global 8000 is the smaller of the two as a three zone cabin jet and has a range of 7900 nautical miles. “By extending this great family, we are once again offering a business jet travel experience that is unmatched and ahead of its time,” said Steve Ridolfi, president, Bombardier Business Aircraft.
The Global 7000 and the Global 8000 jets are not going to be a part of the fleets until 2016 and 2017 respectively. They both are coming with the same price tag at $65 Million as their 2010 price. it might be a different picture in the future however and I have not heard any numbers on current sales. It is nice to see some new lines coming out and as always it is fun to see the announcements each jet company has out there. We will continue to keep track of the announcements and let you know of them.