The north star
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Posted Date: 01/03/2008
Issue: Executive & VIP Aviation International March 2008
Publication: Executive & VIP Aviation International
Bombardier Aerospace is an old hand at bringing to market highly acclaimed business jets. From the Learjet and the Challenger to the Global, Bombardier has built its light to large cabin aircraft portfolio with an ear firmly to the market. But it is still plugging gaps.
A new Learjet is on the agenda – the Learjet 85 – and this aircraft is positioned between the midsize and the super midsize segments. What is the rationale for this new development? Bob Horner, Vice President International Sales at Bombardier, responds: “You have to look at Bombardier’s overall philosophy. If you consider our existing product line, we have tried to provide an aeroplane for every segment of the market. Where we’ve identified gaps, we’ve filled them.” He continues: “What we’ve done with the new Learjet is identified a gap between the Learjet 60XR and the Challenger 300, so we’ve put an aeroplane into that segment. It’s all about redefining the midsize segment.” The development of the new Learjet is on target for a public unveiling in October 2008. It will fly at high speed cruise of Mach 0.82 and provide a range of up to 3,000nm (5,556 km). It will also offer an eight passenger stand-up cabin.
Also new to the Bombardier fold is the Challenger 605, which has been in service since January 2007. This aircraft type features a wide stand-up cabin, is equipped with the Rockwell Collins Pro Line 21 avionics suite and has an all new cabin electronic system. An increased payload capacity of 200lb (91kg) provides customers with additional flexibility to either add more options, one more passenger or more fuel, while retaining the range of the Challenger family. “The Challenger 605 is a completely different story,” says Horner. “Here we are developing an already successful platform. We have over 750 Challenger 600 Series jets manufactured and what the 605 does is to enhance that already successful platform.”
Taking a punt?
The private jet market is fractured, organically grown and hard to fathom; so does this mean that every time an airframe OEM invests in new types or enhances an already successful variant, it is taking a punt on the way in which the market will move next?
“No!” says Horner emphatically. “We are in a fortunate position in that we know who our customers are. We have sold thousands of business jets over years and years; and so has our competition. We have a very identified pool of customers to canvass when we’re bringing a new product to market.” As a matter of course, there is a lot of talking before Bombardier enhances, develops, redesigns or innovates in any way with its portfolio. “From a Learjet 40 all the way through to a Global Express XRS, we innovate all the way,” Horner comments. “Innovation has to be there in every step we take because we have an extremely demanding customer base. If we don’t design innovation and growth into our products, we are not listening to our customers.”
Aircraft support
Bombardier is only too aware that support in the field is crucial to aircraft selection decisions. “We’re very focused on supporting our customers. This has to be a prime focus of any responsible manufacturer,” says Horner. “We have our own support so that customers can call us 24 hours a day, seven days a week and reach someone to speak to. We have in-country engineers throughout the world who are there to support the installed base of Bombardier products or indeed any Bombardier product that happens to be visiting that country. On top of that, we have seven of our own service facilities, particularly in the US. Outside the US, we have a partnership in Germany (LBAS in Berlin) but we also have appointed authorised service facilities, 37 in fact. These service centres are appointed and audited by Bombardier and recommended by us as able to provide an extremely high level of service.”
He stresses that Bombardier’s number one objective is to keep aeroplanes flying. “It is something we take very seriously,” he adds. Parts provisioning and logistics are very much a priority, regardless of how frantic the order book looks. “Our customer support department tracks the sale of aircraft – and they are doing that years out,” he says. “Together we review where we’re selling aeroplanes and where we’re likely to need the support. We also ask ourselves where these aeroplanes are likely to fly – their operational circle – and we look at support within that circle. There’s a constant review of sales and installed base.”
Bombardier has invested enormously in parts depots. “We’ve opened new depots in Dubai, Sao Paulo and Tokyo; and parts distribution warehouses in Chicago and Frankfurt,” says Horner. “It’s not just about having parts on the shelf but also the distribution of those parts is of prime importance to us.”
Green or complete?
Bombardier sells complete aeroplanes, with a couple of exceptions. The completion is carried out largely in-house by Bombardier and where it works closely with completion centres, that completion centre is likely to be Midcoast Aviation. “Part of the service a customer receives from Bombardier when buying an aeroplane is that a dedicated designer is appointed to the project. The designer gets an understanding for the customer’s specific requirements and then provides proposals reflecting those requirements,” says Horner.
Manufacturing techniques vary according to aircraft type. For example, the Challenger 605 is manufactured largely in-house by Bombardier in Montreal. Metal is cut there and assembly is undertaken there. On the other hand, a Global Express XRS is more of an assembly project. Bombardier assembles the aircraft in Toronto but major components are manufactured by the OEM’s partners around the world, shipped to Toronto and then assembled. Of course one should not forget that a large slice of Bombardier Aerospace’s business is regional airliners. “We have always been two separate divisions (business jets and regional jets). The markets are different and the two divisions run separately. Of course there are opportunities for us to learn from each other and to work with each other. We get tremendous advantage from that as an organisation – we learn so much from the regional operation,” remarks Horner. “But if we get an increase in interest in one part of the business, it does not dilute what we’re doing in another.”
Keeping up
With the market tearing ahead of any OEM’s production capacity, what is Bombardier’s response to such high demand? “We’re a very responsible manufacturer. We don’t just increase production; this is something that needs a lot of planning and coordination because you are reliant on your suppliers coming with you. We have to take a very measured view of the market,” responds Horner. “Of course we’re constantly reviewing and analysing the market ourselves in conjunction with the banks.” He explains that Bombardier has always enjoyed a very high residual value for its products. “This is why the banks like us and like our product. The banks are familiar with the historical residual values of the aircraft and that gives them a higher degree of comfort when they are financing a Bombardier product.”
Does Horner see turbulence ahead? “We got a very good indication a couple of years ago of the way in which the market was going. Frankly, this year, we are not surprised because we strategised for the market to be strong,” he responds. “I see a very buoyant market ahead. You’ve only got to look at where we’re selling to and the projected GDP growth of these countries – everything is positive. All the analysis that we’re doing points to buoyancy.”
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