Bombardier Aerospace
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Bombardier Aerospace

November 13, 2017 07:00 ET

Bombardier Expects 450 new 60- to 150-seat Aircraft to Boost Middle East Regional Connectivity Over the Next 20 Years

- The Middle East is the fourth fastest growing region in GDP terms

- The Intra-Middle East is anticipated to become the fifth largest traffic flow worldwide

- More than 50 percent of intra-regional routes have less than seven flights per week

- Increase in capacity has led yields from Middle East carriers to drop by almost 30% over the last 5 years

MONTRÉAL, QUÉBEC--(Marketwired - Nov. 13, 2017) - Bombardier Commercial Aircraft's Market Forecast 2017-2036 covering the 60 to 150-seat segment sees growth in the Middle East with expected delivery of 450 aircraft in that market segment, or four per cent of the forecast 12,550 deliveries worldwide with a total value of US $820 billion.

The large regional aircraft category (60-100 seats) will account for 200 deliveries, while the small single-aisle category (100-150 seats) will take 250 aircraft. This will result in a fleet 3.4 times larger than at present.

"We are well positioned to take advantage of a move to strict capacity management in the region," said Jean-Paul Boutibou, Vice President, Sales, Middle East and Africa, Bombardier Commercial Aircraft. "Our Q400 high-speed turboprop, CRJ700, 900 and 1000 regional jets and new C Series small single-aisle jets can meet any requirement from 60 to 150 seats with unbeatable performance, economics and efficiency. We are the only aircraft manufacturer with that capability and we look forward to working with Middle East airlines as they expand their intra-regional networks."

The Forecast says that although Middle East airlines were profitable in 2016, the trend is downward. Double-digit capacity increases in the last two years to gain market share were achieved at the expense of decreasing yields due to the emergence of low-cost carriers in the region. The U.S. attempts to curb air travel from some Middle East countries has also put pressure on the region's widebody driven business model. This will result in a slowdown of widebody aircraft deliveries.

Middle East airlines now have an opportunity to re-examine and re-balance their fleet mix in order to develop intra-regional connectivity which has been largely bypassed in favor of inter-regional networks, to fit demand to capacity. Right-sizing of the fleet will lead to higher intra-regional market and penetration and improve yields, the Forecast says.

About Bombardier

Bombardier is the world's leading manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.

Bombardier is headquartered in Montréal, Canada and our shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2016, we posted revenues of $16.3 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Notes to Editors

The complete Market Forecast is available at thttp://news.commercialaircraft.bombardier.com/forecast

Pictures of Q Series, C Series and CRJ Series aircraft are available at http://www.bombardier.com/en/media.html

Product backgrounders are available at http://news.commercialaircraft.bombardier.com/media-kit/

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Bombardier, C Series, CRJ Series CRJ700, CRJ900, CRJ1000, Q Series and Q400 are trademarks of Bombardier Inc. or its subsidiaries.

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