By Ron Wilbur,
Managing Editor
Farnborough, England - Laurent Beaudoin, Bombardier chairman and chief executive officer, addressed a crowd of journalists clearly expecting another order announcement. What they heard was even bigger news, Bombardier Regional Aircraft will develop a new regional aircraft series in the 90-seat class.
Carrying the name BRJ-X, the new plane represents the first five-abreast configuration for a Bombardier regional airliner. The company has not pegged a target price range for the aircraft yet.
"We have begun the formal consultation process in the marketplace with the formation of an airline advisory council to solicit airlinesı input on their specific design requirements. Discussions with potential partners in the project have already started," said Beaudoin.
Invitations to join the council went out to 25 airlines just last Friday. Already, Bombardier has received acceptance from six airlines including Air Canada, Brit Air, Lauda, Maersk Air UK, Tyrolean and Uni Air (formerly Great China).
The new aircraft program will carry a development price tag of around CDN$1 billion of which Bombardier hopes to find risk sharing partners to carry the majority. Beaudoin said the Canadian aerospace company will finance its portion of the development costs from cash flow and does not anticipate the need to seek additional capital funding.
Bombardier is targeting first deliveries for the as yet undefined family in the 2003 timeframe. The company believes it can meet an aggressive, 36-month development schedule from launch to certification.
As for specifics, none are defined as yet. The company originally thought it might be able to leverage the Global Express wing into an airframe for regional use, but now favors an underwing engine wing configuration, saying it offers more cabin flexibility. The number of aircraft in this family is also undetermined. Bombardier says the new family is a series that may have models in the 85-100 seat range. The company expects there wonıt be much commality with aircraft in its CRJ class, explaining that the four-abreast configuration isnıt suitable to this market niche.
"Since the launch of the Series 700, we have been analysing the regional market to assess its future needs and requirements in order to provide the most appropriate product range for our customers," said Beaudoin. We have come to the conclusion that the 90-seat segment will be the next logical step and we believe it offers great potential for Bombardier."
Citing market forecasts that it said validated Airbus and Boeing figures, Bombardier pointed to a 20 year market for 2500 units in the 80-110 seat class. The company also feels that direct operating costs per 500 nautical mile trip for its proposed BRJ-X will fit right between the CRJ-700 and Boeingıs 717-200. Missing from the comparison are the Airbus 318 and Fairchild Dornierıs 928JET. When asked if Bombardier expected Embraer to offer a competitive response, one Bombardier executive said, "Well, theyıve got their hands full, havenıt they?" It wasnıt clear if the response was directed at the swelling Embraer orderbook or the seemingly unprofitable business the Brazilian company is wresting from Bombardier.
The powerplant for the new aircraft hasnıt been selected yet, although that remains one of the very next decisions, according to John Holding, Bombardierıs executive vice president of engineering.