Newspaper article The Canadian Press

Bombardier Loses Top Business Jet Ranking to Gulfstream in 2013 in Terms of Sales

Newspaper article The Canadian Press

Bombardier Loses Top Business Jet Ranking to Gulfstream in 2013 in Terms of Sales

Article excerpt

Bombardier loses top spot to Gulfstream

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MONTREAL - Bombardier lost its position as the global business jet leader in 2013 for the first time in nearly a decade as Gulfstream's billings were US$1 billion more than its Canadian rival, the General Aviation Manufacturers Association said Wednesday.

The aircraft manufacturer said it had anticipated that Gulfstream's new G650 would have an impact on the global ranking, but that it aims to regain the edge it had held since 2005.

"We still hope that the top spot is within reach in the short- and medium-term future," spokeswoman Annie Cossette said Wednesday.

The GAMA report is the latest bad news for Bombardier, which reported weak financial results that caused its shares to plummet after it reduced its profit target for 2014. The shares gained three cents to close at $3.55 Wednesday on the Toronto Stock Exchange.

Bombardier expects to deliver 200 business jets this year, 11 per cent more than last year and is also developing a number of new business jets that could help it longer term.

However, only the Challenger 350 is expected to be available for delivery this year. The long-range Global 7000/8000 isn't expected to be delivered until 2016 and 2017 while the Learjet 85 is only expected to make its maiden test flight in the "coming weeks" after receiving a U.S. government permit.

Bombardier (TSX:BBD.B) sold 25 per cent more aircraft than Gulfstream in 2013, but the U.S. company generated 16 per cent higher revenues of US$7.35 billion.

The Montreal-based manufacturer sold 180 business jets in 2013, one more than in 2012 as the value of its billings increased 8.6 per cent to US$6.33 billion.

Bombardier deliveries included 62 large Global planes, 32 Challenger 605s, 55 Challenger 300s and 29 Learjets. The relative weakness in the small jet market saw Learjet deliveries fall by 10 planes, offset by the shipment of eight more Globals and seven more Challenger 300s.

Gulfstream's total deliveries increased by 53 per cent to 144 aircraft, including 121 larger models and 23 Gulfstream 150s and 280s. …

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