Bombardier’s new Global 7000 makes trade show debut

MONTREAL: Bombardier Inc’s ( BBDb.TO) largest business jet is making its debut on Sunday in Las Vegas, giving a glimpse of the ultra long- range plane the Canadian company is counting on for growth at a time of sluggish industry sales and as it fights a trade battle over a separate jet.

The new Global 7000, the industry’s largest jet designed for private or corporate use, will be on display at the National Business Aviation Association’s f lagship industry trade show on October 10 to 12.

When it enters service next year, the Global 7000, with a list price of almost US$ 73 million, will play a key role in the five-year turnaround plan of Bombardier, which also makes trains, after a near- brush with bankruptcy in 2015.

A separate Bombardier plane, the CSeries, has been caught up in a trade dispute, with the US Commerce department slapping a preliminary 300 per cent duty on sales of the commercial jets after Boeing complained its Canadian rival received illegal subsidies and dumped the aircraft at “absurdly low” prices.

With eight customer jets in production and about 900 hours logged in its flight test program, the Global 7000 is on track for deliveries in late 2018, Bombardier said in a statement.

“We have a healthy order book for the Global 7000 and can confirm that the aircraft is sold out until 2021,” said Bombardier Business Aircraft President David Coleal by email.

Analysts expect the aircraft will add US$ 300 million to operating profit and contribute nearly one- third of Bombardier’s targeted US$ 10 billion in business jet revenues in 2020.

“High- end business jets have always been the most important and most profitable part of the company,” said Teal Group aerospace analyst Richard Aboulafia by email. “Even with the CSeries ramping up, much of the company’s fortunes still depend on Global deliveries.” — Reuters