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Bombardier feeling the heat from rival Gulfstream

Aug. 6, 2013, Montreal – Bombardier says it can still maintain its position by year-end as the world's largest business aircraft manufacturer despite falling behind U.S. rival Gulfstream Aerospace Corp. in terms of the value of planes shipped in the second quarter.


August 6, 2013
By Ross Marowits | The Canadian Press

Aug. 6, 2013, Montreal – Bombardier says it can still maintain its position by
year-end as the world's largest business aircraft manufacturer
despite falling behind U.S. rival Gulfstream Aerospace Corp. in
terms of the value of planes shipped in the second quarter.

"The prospects are still positive for us overall,'' said
spokeswoman Annie Cossette.

"I won't speculate what position we'll have until the end of the
year but we do believe that No. 1 is still within our reach.''

The U.S.-based Gulfstream shipped 36 aircraft worth US$1.83
billion in the quarter, compared to 45 planes valued at US$1.59
billion for Bombardier, according to the General Aviation
Manufacturers Association.

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The value of Gulfstream's shipments doubled from a year earlier
when it delivered 21 aircraft. Bombardier shipped one
less aircraft this year but the value of planes delivered increased
by US$274 million or nearly 18 per cent.

Halfway through the year, the value of Gulfstream's aircraft
shipments was 7.5 per cent greater than its Canadian rival.

Gulfstream spokesman Steve Cass said deliveries increased for the
G280 and G650 aircraft, both of which were certified and entered
into service in 2012.

"We have publicly announced that we have sold more than 200 G650
aircraft. To date, we have delivered more than 20 G650 aircraft to
customers,'' he wrote in an email.

Bombardier shipped 14 Global 5000/600, 11 Challenger 605, 16
Challenger 300 and four Learjet 60XR during the quarter. The
division of General Dynamics delivered 30 of its
450/550/650 planes and six smaller 150/280 aircraft.

It's not the first time that Bombardier has slipped down the
quarterly ranking. And Cossette said the Montreal-based company
anticipated that Gulfstream's revenues would increase when
deliveries started for its new long-range US$65 million G650.

She said expected deliveries in the fourth quarter of its new
Learjet 70 and 75 should have a positive impact on Bombardier
revenues. Longer term, the manufacturer stands to benefit from a
series of new aircraft, including the Global 7000 and 8000,
Challenger 350 and Learjet 85.

Overall, the industry association said total worldwide airplane
shipments rose 8.9 per cent in the first half of 2013 as billings of
various smaller aircraft reached US$10.4 billion, up 26.4 per cent
from the prior year. It marked the first time that six-month
revenues surpassed US$10 billion since 2008.

Shipments of single, twin and piston-engine airplanes increased,
but industry business jet deliveries decreased 4.1 per cent to 283
planes, from 295 a year ago.

"We are encouraged to see a strong increase in billings this
quarter, but the mixed results in shipments – and the differences in
performance among sectors – demonstrate that general aviation
airplane manufacturers still face some strong headwinds as the
global economy recovers,'' stated General Aviation Manufacturers
Association president Pete Bunce.

Montreal-based Bombardier shipped 179 aircraft valued at US$5.8
billion in 2012, compared to 94 aircraft valued at US$4.1 billion by
Gulfstream.