Bombardier Commercial Aircraft Update - June 2013

update Commercial Aircraft

PARIS AIRSHOW 2013 Edition

JUNE 2013 | Volume 24 | Issue 2

Another new

CSeries operator Inside: • • • • •

CSeries FTV1 moves to flight test WestJet takes first Q400 NextGen airliner Bombardier’s growing fleet in Africa 2013 Commercial Aircraft Market Forecast Dash 8 aircraft’s 30-year history

Bombardier Commercial Aircraft provides optimized aircraft solutions for short-haul, medium-haul and longer-range markets.

Q400 NextGen: optimized short-haul solution

CRJ NextGen: optimized regional jet solution

CSeries: optimized single-aisle mainline solution

Sales boost F

i rm commitments for Bombardier’s CSeries airliner increased to 177 early in June 2013 when Ilyushin Finance Co. (IFC) of Moscow firmed up its order for 32 CS300 aircraft plus options on another 10 CS300 aircraft. The firm order followed IFC shareholder approval of a previously announced conditional order for the aircraft.

A lso early in June, Gulf Air of the Kingdom of Bahrain was disclosed as the unidentified customer that placed a firm order for 10 CS100 airliners plus options on an additional six, announced on June 20, 2011.

Meanwhile, the first CSeries airliner, Flight Test Vehicle 1 (FTV1) has moved from the

assembly line to the flight test area to prepare for its inaugural flight by the end of June 2013.

T he transfer followed the end of the last series of structural tests on the Complete Airframe Static Test (CAST) article and the completion of the functional testing on FTV1.

“The progress made in the aircraft’s on-theground testing and experimental phase, as well as in the assembly stage, have been key factors in the maturity of the CSeries aircraft program,” said Rob Dewar, Vice-president and General Manager, CSeries Program.

“The flight test program includes a series of ground tests to be followed by official flight release,” said Marco Biando, Vice-president,

June 2013 // 2

for CSeries aircraft program Flight Test Centres and Flight Operations, Bombardier Aerospace. “As in the development and experimental phases, our focus will be on ensuring the safety of all systems and resources as we clear the aircraft for its maiden flight.”

B ombardier’s Customer Services and Support organization is targeting CSeries aircraft line maintenance “A” checks every 850 flight hours and “C” base maintenance checks every 8,500 flight hours at entry into service. “ These proposed intervals will provide our CSeries aircraft operators with a leading maintenance program,” said Todd Young, Vicepresident, Customer Services and Support. “We believe that this offers further evidence of our

commitment to provide competitive maintenance cost solutions for these operators.”

T he CSeries aircraft maintenance program remains under development using the Maintenance Steering Group 3 (MSG-3) process where analysis of systems, powerplant and structures are reviewed by working groups and approved by the CSeries aircraft Industry Steering Committee (ISC). Multiple working groups and ISCs are meeting prior to submitting the Maintenance Review Board Report to Transport Canada for acceptance before entry into service in 2014.

Employees at Mirabel celebrate the handover of FTV1 to the flight test progam.

3 // May 2013

get more

WestJet takes its first Q400 NextGen airliner C

algary, Alberta-based WestJet has taken delivery of the first of 20 Q400 NextGen turboprop aircraft the airline has on firm order. WestJet holds options on an additional 25 Q400 NextGen aircraft.

The Q400 NextGen airliner fleet will be operated by Canada’s newest regional airline, WestJet Encore and will serve several destinations beginning in Western Canada on June 24, 2013.

During a special delivery ceremony at Bombardier Aerospace’s Toronto facility, alongside more than 100 WestJetters, including Gregg Saretsky, President and Chief Executive Officer, WestJet, Ferio Pugliese, President, WestJet Encore, and Executive VicePresident, WestJet said: “We are thrilled that this great Canadian turboprop will be the backbone of WestJet Encore’s operations, servicing new destinations and effectively connecting more cities.

“With an unmatched balance of speed, cost efficiencies and highly regarded environmental qualities, the Q400 NextGen aircraft will also allow us to operate more efficiently as we enhance service on more routes. This versatility opens up many new possibilities and options for Canadians as well as increasing the frequency of flights to better serve travelers,” added Mr. Pugliese.

Mike Arcamone, President, Bombardier Commercial Aircraft, Simon Roberts, Vice-president and General Manager, Turboprop Programs and the Toronto Site, Bombardier Commercial Aircraft and guests from the federal, provincial and municipal governments also

attended the ceremony.

“The very flexible Q400 NextGen aircraft is efficient on short-haul missions or can use its speed to reach regional destinations further afield, making it competitive with jets on longer sectors – a perfect fit for WestJet,” said Mr. Arcamone.

WestJet began operations in 1996 with 220 employees, three jets and five destinations. Today the airline has 9,000 employees, over 100 jets and flies to 86 destinations in North and Central America and the Caribbean.

Japan Air Commuter extends Q400 Smart Parts agreement Japan Air Commuter has signed on with the Q400 Smart Parts program for another five years covering its 11 Q400 turboprops.

The program is customized to the airline’s specific operational and performance requirements and provides competitive and predictable repair costs for key Q400 aircraft components.

With Japan Air Commuter’s Smart Parts extension, Bombardier will continue to provide

scheduled and unscheduled maintenance on a broad range of components and will provide around-theclock repair management services to ensure maximum aircraft availability.

Japan Air Commuter was the first commercial airline to choose Smart Parts and has since been joined by other Q400 aircraft operators in Europe, Asia and North America.

June 2013 // 4

COMMERCIAL AIRCRAFT MARKET FORECAST Russia & CIS

740

North America

3,710

Europe

1,700

China

2,330 Middle East

480

Africa

700

India

660

Latin America

Asia/ Pacific

1,120

W

hile Bombardier’s Commercial Aircraft Market Forecast for the 2013-2032 period sees no change in the number of overall deliveries in the 20- to 149-seat category – 12,800 units – from the previous year’s forecast, the regional distribution will change. The deliveries are expected to generate more than $646 billion in sales revenue.

The forecast sees a below-average GDP growth in the mature markets of North America and Europe and a more robust growth in emerging markets such as Asia and Russia/CIS. The driving forces behind the forecast are a projected strong traffic demand, an expanding middle class population in growth markets and the periodic progression of scope clauses.

“While demand from international markets such as India, China, Africa and Latin America is expected to increase significantly, North America is expected to remain the world’s largest market, followed by Europe and China,” the forecast states. (Refer to the accompanying chart for delivery forecast by region.)

Bombardier expects regional jets will dominate the 60- to 99-seat market with deliveries of 2,950 units – or 52 per cent of the total for that market segment – valued at $105 billion, with turboprops accounting for 2,700 units with a value of $81 billion.

The 100- to 149-seat segment should see 6,900 deliveries worth $460 billion during the forecast period.

1,360

The forecast predicts that technical obsolescence and rising fuel prices will be the most critical factors influencing airline fleet decisions over the next 20 years. With the increasing demand for more cost effective and fuel-efficient aircraft, 60 per cent of the current fleet will be retired by 2032, with most of those aircraft in the 20- to 59-seat segment.

“However, with increased worldwide interest in new generation technologies which allow larger and more economical 60- to 149-seat aircraft solutions, and steady economic growth in developing markets, new aircraft demand is anticipated to remain strong,” the forecast states.

With its three distinct product lines – the Q400 NextGen, CRJ NextGen and CSeries airliners – Bombardier has created aircraft that will meet its customers growing demand for sustainable transportation solutions that feature a reduced environmental impact.

20- to 59-seat

3,000

8,700 5,650

1,300 6,950 4,800

3,500

250

2,700 2,600 1,050

Deliveries Retirements

Fleet 2012: 10,900

5 // June 2013

100- to 149-seat 6,900

2012 Fleet

Dubai airline seminar

60- to 99-seat

2032 Fleet

2012 Fleet

Deliveries Retirements

Deliveries: 12,800

2032 Fleet

2012 Fleet

Retirements: 7,000

Deliveries Retirements

2032 Fleet

Fleet 2032: 16,700

Representatives from 14 airlines attended Bombardier’s Global Airline Executive Seminar held in Dubai from May 20-23.

The seminar was designed to raise awareness of the Bombardier brand, increase customer engagement, establish relationships with current and future leaders and inform decision makers through presentations and workshops.

A typical reaction to the seminar came from the representative of a Middle East airline who said, “This seminar is truly a reflection of the Bombardier image as a professional manufacturer, an industry leader with performing products and able management.”

African growth Bombardier’s

B

ombardier regional aircraft have made significant advances in Africa to the point where Dash 8/Q-Series turboprops and CRJ regional jets have a 50 per cent share of the 37- to 120-seat market on the continent with 157 aircraft operated by more than 40 operators in May 2013. That fleet consisted of 104 Bombardier turboprops and 53 regional jets.

“There are three main reasons for this growth,” said Raphael Haddad, Vice-president, Sales, Africa & Middle East, Bombardier Commercial Aircraft. “Our regional aircraft have lower operating costs, they have superior performance and they have greater flexibility than their competitors.”

Mr. Haddad made the comments during a briefing to the annual general meeting of the International Air Transport Association in Cape Town early in June 2013.

Bombardier’s after-sales support is keeping pace with the fleet growth with services provided in Casablanca, Addis Ababa and Johannesburg, with more to be added in the future.

Mr. Haddad noted the steady growth of the Q400 and Q400 NextGen turboprops, with more than 50 aircraft in operation or on firm order, an increase of 237 per cent since 2010.

Bombardier’s CRJ regional jets are also doing well in Africa with 10 new operators added in the last four years.

“Our regional jets are more popular because of the lowest fuel burn and cash operating costs compared to the competition, as well as the best dispatch reliability of 99.5 per cent,” said Mr. Haddad.

Bombardier’s Commercial Aircraft Market Forecast for the period 2013-2032 suggests that Africa will take an increasing share of deliveries in the 20- to 149-seat segment, with 700 aircraft. The 2012-2031 forecast predicted delivery of 550 aircraft to African operators. Africa is therefore considered to be one of the growth regions over the next two decades.

June 2013 // 6

The Dash 8: 30 years of flight

The first Dash 8 entered revenue service with norOntair on December 19, 1984.

J

une 20, 2013 will mark the 30th anniversary of the In 1992, de Havilland launched the Dash 8-200 first flight of the venerable de Havilland Dash 8 model. It was basically a Dash 8-100 aircraft with more turboprop. powerful engines to provide more speed, longer range It was on June 20, 1983 that the then newand much improved “hot-and-high” airfield capabilities. generation turboprop took off from the runway at The first Dash 8-200 aircraft was delivered in April 1995. de Havilland’s (now Bombardier’s) factory at By the end of 1992, de Havilland had been acquired Downsview, in Toronto’s northern suburbs.

by Bombardier, which continued the work de Havilland The Dash 8 aircraft program was driven primarily by had been doing on a further stretch of the Dash 8 the early sales success of the 50-passenger aircraft. The result was the Dash 8-400, launched in de Havilland Dash 7 STOL (Short Take-off and Landing) June 1995 and first flown on January 31, 1998, with the airliner, recalled Thomas E. Appleton, initial deliveries to SAS Commuter a member of the development in 2000. The Dash 8-400 airliner team. At the same time, he said, seats from 68 to 80 passengers. de Havilland recognized that the While the Dash 8-400 shares per-seat fuel consumption of the its predecessors’ distinguished John Sandford, former president Dash 7 aircraft could not be made heritage, it is a new aircraft with of de Havilland Canada, and to be competitive in a non-STOL new engines, avionics and systems, considered the “father” of the environment. a modified wing and, of course, a Dash 8 aircraft, was inducted into But, said Mr. Appleton, longer fuselage.

Canada’s Aviation Hall of Fame at de Havilland believed that its history Since 1996, Dash 8 turboprops the Hall’s annual induction dinner of building rugged, practical and have been marketed as the in Ottawa on May 30, 2013. utilitarian aircraft (DHC-2 Beaver, Bombardier Q-Series aircraft. The The citation noted that Mr. DHC-3 Otter, DHC-4 Caribou, Q means Quiet because of lower Sandford’s legacy could be seen DHC-5 Buffalo and DHC-6 Twin noise and vibration from the Active in the more than 1,000 Dash 8 Otter aircraft) led the company Noise and Vibration Suppression aircraft used by airlines around to believe it could compete with (ANVS) system that provides a jetthe world. anyone in the rough-and-tumble like cabin environment. world of commuter (now regional) The 30 years since that first flight airlines. The market research also mark a 30-year partnership indicated a considerable demand between de Havilland/Bombardier for a 30- to 40-seat turboprop and Pratt & Whitney Canada. The commuter aircraft in markets then Dash 8-100 aircraft launched the dominated by smaller piston engine PW100 Series of P&WC engines and aircraft. de Havilland eventually those engines have powered every settled on a 37- to 39-seat aircraft Dash 8 aircraft model through the The Dash 8-100 aircraft entered Q300 aircraft. The Q400 aircraft revenue service on December 19, remains a Pratt customer with the 1984 with a flight between two PW150A power plant.

From left, John Sandford; Maj-Gen. Michael Hood, CD, Deputy Commander, Ontario cities, Sudbury and North At the end of May 2013, Royal Canadian Air Force who presented Bay, by norOntair, a subsidiary of the de Havilland/Bombardier had Mr. Sandford with the induction Ontario Northland Transportation recorded firm orders for 1,139 certificate; and Thomas E. Appleton, Chairman, Canada’s Aviation Hall of Fame Commission, an agency of the Dash 8/Q-Series aircraft: 299 Dash and former de Havilland and Bombardier Ontario government.

8-100 Series, 105 Dash 8-200 Aerospace executive.

The Dash 8-100 aircraft Series, 267 Dash 8-300 Series, and was stretched to create the 468 Dash 8-400 Series aircraft.

50-passenger Dash 8-300, which first flew on May All but the Dash 8-100 variants are Q-Series aircraft.

15, 1987. That airplane was the original Dash 8-100 The aircraft are used not only as airliners, but also for a prototype with fuselage plugs. wide variety of non-airline, multi-role missions.

Honours for John Sandford

7 // June 2013

Bombardier’s major presence at Paris

crjnextgen.com

cseries.com

q400nextgen.com

Q-Series/Dash 8 Facts and Figures CRJ Series Facts and Figures Status (March 31, 2013) Delivered Series 100 299 Series 200 105 Series 300 267 Series 400 433 Program total 1,104

Total 299 105 267 467 1,138

Dash 8-100/Q200/Q300 Fleet statistics, January 2013 Average flight time (mins.)

50 Average annual utilization (hours/cycles) 1,728/2,062 Highest annual utilization (hours/cycles) 2,863/4,970 Fleet total hours 21,746,281 Fleet total cycles 26,300,222 Schedule completion rate 99.5% 12-mo. Avg. Q400 Fleet statistics, February 2013 Average flight time (mins.)

58 Average annual utilization (hours/cycles) 2,208/2,275 Highest annual utilization (hours/cycles) 3,183/3,324 Fleet total hours 4,213,072 Fleet total cycles 4,551,345 Schedule completion rate 99.6% 12-mo. Avg.

CSeries Facts and Figures Status (March 31, 2013) Delivered Total CS100 0 63 CS300 0 82 Program total 0 145

Status (March 31, 2013) Delivered Total CRJ100 226 226 CRJ200 709 709 CRJ440 86 86 CRJ700 317 331 CRJ705 16 16 CRJ900 263 314 CRJ1000 30 67 Challenger 800 33 33 Program total 1,680 1,782 CRJ100/200 Fleet statistics, January 2013* Average flight time (hrs.)

Average annual utilization (hours/cycles) Highest annual utilization (hours/cycles) Fleet total hours Fleet total cycles Schedule completion rate

1.06 2,170/2,050 3,571/3,324 26,106,379 22,997,897 99.7% 12-mo. Avg.

CRJ700/705/900 Fleet statistics, February 2013* Average flight time (hrs.)

1.39 Average annual utilization (hours/cycles) 2,616/1,884 Highest annual utilization (hours/cycles) 3,559/3,097 Fleet total hours 10,057,472 Fleet total cycles 7,359,497 Schedule completion rate 99.7% 12-mo. Avg. CRJ1000 Fleet statistics, February 2013 Average flight time (hrs.)

Average annual utilization (hours/cycles) Fleet total hours Fleet total cycles Schedule completion rate *Does not include operators of corporate aircraft.

1.07 2,322/2,176 88,767 83,715 99.9% 12-mo. Avg. Utilization based on schedule data.

Bombardier Commercial Aircraft is pubished by: Bombardier Commercial Aircraft 123 Garratt Boulevard, Toronto, Ontario Canada M3K 1Y5 Tel: +1-416-375-4027 // Fax: +1-416-375-4540

President: Michele (Mike) Arcamone Senior Vice-president, Commercial: Chet Fuller Vice-president, Marketing: Philippe Poutissou Vice-president, Customer Services and Support: Todd Young

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www.aero.bombardier.com Information, technical data and performance figures in this publication are subject to change without notice. This publication does not intend to convey any guarantees or warranties. Any guarantees or warranties on any subject are extended to customers only as may be provided in their purchase agreements. Articles in Commercial Aircraft Update may be reproduced without permission, providing the acknowledgement is given to Bombardier Commercial Aircraft Update.

Copyright © Bombardier Inc. 2013 *Bombardier, Bombardier 415, Challenger, CL-215, CRJ, CRJ100, CRJ200, CRJ700, CRJ705, CRJ900, CRJ1000, CS100, CS300, CSeries, Dash 8, Global, Learjeat, NextGen, Q200, Q300, Q400 and Q-Series are trademarks of Bombardier Inc. or its subsidiaries.

Bombardier Commercial Aircraft is staging its customary strong presence at the 2013 Paris Airshow at Le Bourget. The show runs from June 17 through 23.

The company’s sales and marketing organization and Customer Services and Support unit will be well represented at the Bombardier Chalet, A-282.

On display just outside of the chalet, visitors will find two of Bombardier’s technologically advanced airliners – a Q400 NextGen turboprop and a CRJ1000 NextGen regional jet. Equipped to support state-of-the-art, multi-media entertainment, and to keep visitors informed about Bombardier’s activities at the air show, the CSeries Pavilion will showcase the flight deck and passenger cabin demonstrators of the all-new mainline aircraft developed for the 100- to 149-seat market segment.