Business jet sales, worst year since 2011

A Honeywell International Inc. recent forecast report advises an impending decrease in business-jet deliveries in 2015.

Bombardier, Canada’s largest aerospace company last booked a firm order for the C Series in September 2014, when a unit of Australia’s Macquarie Group Ltd. agreed to buy 40 of the jets. Costs to develop the plane — which is more than two years late — have ballooned by more than $2 billion to about $5.4 billion.

Bombardier said its CS100 aircraft, the smaller of two variants of the C Series, is now in “the final stage” of certification by Transport Canada. The plane is due to enter service in 2016. Executives probably will provide further details on the program at a Nov. 24 presentation for investors in New York City.

Prospects for a lift from business-jet sales — traditionally Bombardier’s most-profitable unit — may be fading after Honeywell’s annual survey of the luxury-aircraft market projected the first drop in long-term spending since 2009. Still, Bombardier Tuesday disclosed a memorandum of understanding with Flexjet LLC for 20 Challenger 350 aircraft that is valued at about $544 million, based on list prices.

”If you leave aside the question of government financing, Bombardier’s business is not taking off, an analyst at CI Investments said. “They have to get orders.”

adapted from Bloomberg

Bombardier CS100