OEM - Commercial aircraft is gaining momentum

Issue: 2 / 2010

Upbeat about the prospects for both commercial and business aircraft, Trung Ngo, Vice-President (VP) - Sales, Asia-Pacific Region, Bombardier Commercial Aircraft, spoke to B. K. Pandey, Editor of SP’s AirBuz about the company’s marketing strategy

SP’s AirBuz (SP’s): Could you please briefly outline the history of Bombardier and its area of focus ?

Trung Ngo (TN): Founded in 1942 by Joseph Armand Bombardier, the inventor of the Snowmobile, Bombardier is now a global transportation company with presence in more than 60 countries in five continents. With its headquarters in Montréal, Canada, Bombardier has 66,900 employees and operates two industry-leading businesses of aerospace and rail transportation. The company has world-wide leadership and provides ingenious and sustainable solutions to mobility challenges and opportunities. Bombardier Aerospace has over 32,500 employees and is well-positioned in global markets ranking as the world’s third largest civil aircraft manufacturer. Its high-performance aircraft and services have set a high standard of excellence in several markets, including a range of commercial and business jets.

SP’s: How do you see commercial aviation evolving in the region with specific reference to India? Please briefly outline Bombardier’s marketing strategy for airliners in the Asia Pacific Region.

TN: With economies in the Asia-Pacific Region emerging from recession, the market for commercial aircraft is once again beginning to gain momentum. Also, the marketing focus is shifting from the US to the Asia Pacific region with India and China emerging as major buyers. At present, there are only 11 CRJs flying in India—seven CRJ 200 with JetLite and four CRJ 700 with Air India. The commercial aircraft market forecast for the period 2009 to 2028, is driven by strong economic growth, excluding China. India will account for 36 per cent of the deliveries in the Asia-Pacific region. The fleet of Bombardier commercial aircraft in service and on order in the Asia-Pacific region includes 201 Q Series and 60 CRJ Series of aircraft. We therefore view the Asia Pacific Region, and particularly India, as a key market for Bombardier that offers tremendous opportunities. Bombardier has the right product mix for the market. Our fast, fuel efficient, lower emission Q400 Next Generation Turboprop airliner is ideally suited for short haul operations while the CRJ NextGen Jetliner, the world’s most successful regional aircraft programme, is a model of efficiency on medium-haul routes. For longer routes, Bombardier’s C Series of commercial airliners will be entering service in 2013. However, an important pillar of our strategy is to “invest ahead of business”, which implies putting in place a network of support services before delivering the aircraft. We are doing just that.

SP’s: What is the current level of product support Bombardier provides in India and what are the plans for the future?

TN : Bombardier has an efficient service and support structure in India and has been active in the region since 2007 to support its fleet of commercial aircraft. The company has embarked on a plan to expand its customer support services further this year. As a part of its drive to establish support facilities in strategic locations, the company is planning to establish a new regional support office (RSO) in Mumbai, the company’s fifth new Support Office to be commissioned in the last three years globally would be operational by middle 2010. The new RSO will coordinate support services located in New Delhi, Mumbai and Bangalore and provide comprehensive support including aircraft technical expertise, flight operations support, and customer account management functions. The new RSO will help improve response time and strengthen their relationships with customers.

SP’s: With the introduction of the C Series of airliners in 2013, does the company intend to shed its ‘Regional Jet Manufacturer’ image?

TN: Launched in mid-2008, the C Series airliners, the CS 100 and CS 300 are scheduled to enter service in 2013. This class of aircraft is designed to meet with the demands of 100 to 149 seat commercial market segment. The C Series will offer high reliability and unparalleled economy in operations. Although lower in capacity as compared with the Airbus 320 or Boeing 737 class, the C Series would have higher range compared with the CRJs, and hence will have the flexibility to operate both as a regional and transcontinental routes giving airlines a wider range of options.

SP’s: What are Bombardier’s plans to cope with the challenges of climate change and the need to reduce emission?

TN: Bombardier is fully conscious of the challenges of climate change. The C Series of airplanes will be the greenest single-aisle aircraft in its class and will be a game changer. Having a large percentage of composites, it will emit 20 per cent less carbon dioxide and 50 per cent less nitrogen oxide besides being four times more silent. It will offer substantial savings in energy with 15 per cent less fuel burn and 15 per cent lower operating costs when compared with other airliners of the same class and generation under production. The fuel consumption is estimated to be only two litres per passenger per kilometre.