Technical Innovation to Meet Aviation Needs The Role of Seats Aircraft In China

Transcription

1 Technical Innovation to Meet Aviation Needs The Role of Seats Aircraft In China Ben Boehm, Vice-President Programs Bombardier Commercial Aircraft

2 Forward-looking statements This presentation includes forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as may, will, expect, intend, anticipate, plan, foresee, believe or continue or the negatives of these terms or variations of them or similar terminology. By their nature, forward-looking statements require Bombardier Inc. (the Corporation ) to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause the Corporation s actual results in future periods to differ materially from forecasted results. While the Corporation considers its assumptions to be reasonable and appropriate based on current information available, there is a risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward-looking statements made in this presentation, please refer to the respective sections of the Corporation s aerospace segment and the Corporation s transportation segment in the Management's Discussion and Analysis ("MD&A") section of the Corporation's annual report for fiscal year 2008 available on the Corporation s Web site at Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include risks associated with general economic conditions, risks associated with the Corporation s business environment (such as the financial condition of the airline industry), operational risks (such as risks associated with doing business with partners, risks involved in developing new products and services, product performance warranty, casualty claim losses, risks from regulatory and legal proceedings, environmental risks, risks relating to the Corporation s dependence on certain customers and suppliers, human resource risks and risks resulting from fixed-term commitments), financing risks (such as risks resulting from reliance on government support, risks relating to financing support provided on behalf of certain customers, risks relating to liquidity and access to capital markets, risks relating to the terms of certain restrictive debt covenants) and market risks (including foreign currency fluctuations, changing interest rate and commodity pricing risk). For more details, see the Risks and Uncertainties section of the MD&A of the Corporation s annual report for fiscal year 2008 available on the Corporation s Web site at Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect the Corporation s expectations as at the date of this presentation and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All amounts are expressed in U.S. dollars unless otherwise stated.

3 Airline World Market Volatility In The Near Term 2008 short term adjustment Airlines reported a total USD 1 billion 1 of loss Deferred or cancelled of aircraft delivery Moratorium of new aircraft order 2009 will be challenging Airline passenger traffic and capacity is declining Airline profitability is expected to weaken in 2009 Aircraft orders dropped in 2008 and are expected to be weak in 2009 Order cancellations are likely to increase in positive forecast Most economic forecasts predict a rebound in Reported by CAPA

4 Long Term, Positive Market Trends Will Prevail China Civil Aviation Positive Outlook CAAC has a great safety record and is modernizing ATM 14% 2 CAGR passenger traffic in past 8 years; double-digit growth expected in 2009 Growth at major airports has slowed down, but nearly 100 new airports will be constructed by 2020 An industry supported by the Central Government Many opportunities for future growth Total Passenger Traffic (Millions) CAGR: 14% % vs Q Statistical Data on Civil Aviation of China, Bombardier analysis

5 Imbalanced airport utilization presents challenges as well as opportunities for future growth China traffic and aircraft movements by airport categories Tier 1 airports 5 million passengers and above Tier 2 airports Between 1 and 5 million passengers Tier 3 airports Less than 1 million passengers 14% 18% 68% 68% 78% 19% 17% 5% 13% Air space congestion in main corridors Slot restriction at Tier 1 airports Under utilization of Tier 3 airports Airport Traffic Departure & Arrival Data source: 2008 Statistical Data on Civil Aviation of China

6 Regional hubs and Tier 2 airports are currently at the centre of the evolution of China s civil aviation system 10% 8% 6% 4% 2% 0% -2% Traffic Growth 2008 vs % 4.3% -3.0% The evolution continues Major airports in China are well established in terms of capability of handling departures, volume of passenger and freight traffic Regional hubs and Tier 2 airports are the current growth segment Smaller Tier 3 airports will be the next growth segment Right-sizing equipment for market segmentation is key for efficiency and long term prosperity -4% Tier 1 airport Tier 2 airport Tier 3 airport Data source: 2008 Statistical Data on Civil Aviation of China, CAAC official website

7 The lack of seats aircraft is a missing link for system optimization 1200 China current fleet and scheduled delivery by seat seat seat seat >250 seat Current fleet Scheduled delivery for next 5 years Source: ACAS Dec 2008

8 Ideal market segmentation for network optimization Tier 1 to Tier 1 markets Tier 1 to Tier 2 markets Tier 1 to Tier 3 markets Twin-aisle or large single-aisle jet 150+ seats Twin-aisle or large single-aisle jet 150+ seats Small single-aisle jet seats Tier 2 to Tier 2 markets Tier 2 to Tier 3 markets Tier 3 to Tier 3 markets Small single-aisle jet seats Regional aircraft below 100 seats Regional aircraft below 100 seats

9 The seats single-aisle jets are ideal for small mainline markets as well as large regional markets Tier 1 to Tier 3 markets Small single-aisle jet seats Small mainline markets Example: Beijing Yulin, CSeries provides lower unit cost at lower seat capacity to meet traffic demand vs typical 150/180 seats single-aisle jets Tier 2 to Tier 2 markets Small single-aisle jet seats Large regional markets Example: Zhengzhou Harbin CSeries provides slightly higher trip cost with more seats to meet traffic demand vs typical 70/100 seats regional aircraft

10 Regional aircraft are still more cost-effective in serving regional markets Tier 2 to Tier 3 markets Regional aircraft below 100 seats Tier 3 to Tier 3 markets Regional aircraft below 100 seats seats aircraft markets Example: Hohhot Tongliao Q400 and CRJ700/900/1000 are the lowest operating cost regional aircraft in class More developed CPA model can help promote effective use of regional aircraft Small used regional aircraft markets Example: Altay Yining Used CRJ200 or Q300/200, coupled with Government subsidies are ideal for essential aircraft service in remote areas

11 There exists a large demand of seats aircraft in order to improve current and new airport utilization Bombardier Commercial Aircraft Market Forecast seats aircraft demand seats 0% seats 42% China Total 2,064 units seats 58% Source: Bombardier Commercial Aircraft Market Forecast 2008

12 Focused On Delivering Optimized Aircraft Solutions Aligned With Market Trends & Outlook Turboprops Q400 NextGen Q400X NextGen* Regional jets CRJ700 NextGen CRJ900 NextGen CRJ1000 NextGen Single-aisle mainline jets CS100 CS300 * Market Study CRJ, CRJ700, CRJ900, CRJ1000, CSeries, NextGen, Q400, CS100 and CS300 are trademarks of Bombardier Inc. or its subsidiaries.

13 The Q-Series NextGen Aircraft OPTIMIZED SHORT-HAUL SOLUTION Best Short-haul Regional Airline Economics Reduced Environmental Impact Lowest Emissions In Its Class Jet-like Speed Allows For Airline Schedule Optimization Enhanced Comfort From Redesigned Cabin Family Commonality With Dash 8 Models

14 Key Features & Technology Enhancements HGS for Cat IIIa Landing & Low Visibility Take-off * RNP AR 0.3 Operational Approval * Noise & Vibration Suppression (NVS) System All Composite Blades Enhanced NextGen Cabin Comfort Jet-Like Cruise Speed & Climb True 21 st Century Integrated Avionics Steep-Approach and Landing Capability * Latest Generation Turbo Prop Engine Improved PW150A Maintenance Program Unpaved Runway *, Excellent Airfield Performance + Hot & High Capability * Optional Feature

15 The CRJ NextGen Aircraft OPTIMIZED REGIONAL JET SOLUTION 7%-15% Better Direct Operating Costs Than Competing Jets Enhanced Comfort From Redesigned NextGen Cabin Reduced Environmental Impact Lowest Emissions In Its Class Optimized Platform for Low Traffic Markets of Medium-Long Distances

16 Key Features & Technology Enhancements Superior Economics Enhanced NextGen Cabin Comfort In-Flight Entertainment System (IFE) * Proline IV Integrated Avionic Suite Low Fuel Burn Composite RTM Flaps Highly Efficient CFM34-85C Engine Enhanced Avionics WAAS/LPV & EFB * HGS for Cat IIIa Landing Low Visibility Take-off * * Optional Feature

17 The CSERIES Aircraft OPTIMIZED SINGLE-AISLE SOLUTION Family of Aircraft with Full Commonality Unmatched Reduction in Environmental Footprint Total Life Cycle Cost Improvement 15% Better Cash Operating Costs and 20% Fuel Burn Advantage Widebody Comfort In A Single Aisle Aircraft Mature 99% Reliability at Entry Into Service Operational Flexibility Short Field and Longer Range Performance

18 CSERIES Design and Technologies Focused On Optimization Best in Class Cabin Comfort and Flexibility 70% Advanced Materials Advanced Flight Deck FBW with Side Sticks Integrated Avionics & Optimized Systems Superior Field Performance & Range Flexibility Electric Brakes Latest CFD Pratt & Whitney Technology PurePower PW1000G

19 Driving Optimization 70% Advanced Structural Materials 1% 8% 21% 46% 24% 70% Advanced Composites Aluminum Lithium Standard Materials Titanium Steel New Technology Material Application Saves Over 2,000 lbs (909 kg)* * compared to all conventional Al Alloys

20 Driving Optimization CSeries Pratt & Whitney PurePower PW1000G Fan Drive Gear System TALONX Combustor 2009 Aviation Week Laureate Award Winner Ultra High Bypass Fan Fewer Airfoil Stages

21 CSERIES Advanced Flight Deck Enabled by Rockwell Collins Pro Line Fusion TM Technology Five Large 15.1 LCD Displays Sidestick with Auto throttle Glareshield Tuning Integrated Overhead Panel Virtual Panels Cursor & Keyboard Electronic Check-List Options includes: Head Up Display (Single and Dual) Class 2 EFB

22 Combining Today's Most Challenging requirements with an Unprecedented Level of Future Growth Provisioning Highway in the sky Full Format PFD Synthetic vision Optional Single and Dual HGS CDA and 4D Navigation Capability RNP 0.1 Growth Threat Overlays Surface Guidance Surface Traffic Runway Incursion Prevention Super-Density Terminal Operations Enhanced Vision System Overlay The CSERIES Clean Sheet Design Will Open A New Era of Airplane Embedded Capabilities

23 CSERIES Key Technology Readiness Validated Through Flight Testing Active Control Technology Proof of Bombardier Fly-By-Wire Concept Validated Through 230 Flight Hours The CSeries is Benefiting From Bombardier Extensive Research Program

24 Unmatched Reduction In Environmental Footprint The future of the industry lies in the challenge of balancing profitability and reducing impact on the environment. Designed with vision and conviction, the CSERIES combines low operating costs and an unmatched environmental scorecard.

25 Operational Flexibility Longer Range And Excellent Airfield Performance Takeoff Field Length (at MTOW, ISA) 7,500 ft 2,286 m 6,000 ft 1,829 m F100 Avro RJ100 (1,189 nm) 4,500 ft 1,372 m 1,400 nm 2,593 km 717 1,850 nm 3,426 km E195 FLEXIBILITY E190 2,300 nm (8,100 ft) 94% More Market Coverage Short Runway Capability Range A318 2,750 nm 5,093 km 100+ More Airports CS100 ER Trans-Con Range 3,200 nm 5,926 km * Based on area difference of 2,950 nm vs. 2,118 nm (CS100 ER & E195 full pax range) ** 100+ Airports Between 4,950 ft and 7,149 ft with More than 400 dept / month

26 CSERIES Range out of Beijing and Hong Kong 2,700 nm (5,000 km) Performance Assumptions: 2.5% Margin on OWE for Customization, Pax lb (102 kg), ISA conditions. 85% Annual Winds. Type Spec. 32 Pitch, 100 nm (185 km) Alternate, 45 min 15,000 ft, 5% Flight Fuel Reserve.

27 CSERIES CS100 Range from Lhasa to East Coast of China Controlled Air Route (Flyover Chengdu) BEIJING (BJS) LHASA (LXA) Chengdu (CTU) SHANGHAI (SHA) GUANGZHOU (CAN) HONGKONG (HKG) Preliminary Study Demonstrates CSERIES Great Potential for Lhasa Operations with Range Capability above 1,600 nm *Bombardier November 2008 preliminary study. Performance Assumptions based on CAAC requirements. 110 pax at 225 lbs each. Customized OWE. Zero Winds for Segment East of Chengdu. Flight Testing and High Altitude Operations Certification would be required.

28 QUESTIONS? Ben Boehm. Vice-President Programs Bombardier Commercial Aircraft

29 Information contained in this document is proprietary to Bombardier Inc., Bombardier Aerospace, Commercial Aircraft ( Bombardier ). This document must not be reproduced or shared with, or distributed to, any third party in whole or in part without Bombardier s prior written consent. This document is submitted for informational purposes only; is not part of any proposal; and creates no contractual commitment. Bombardier provides the information contained in this document on an as is, where is basis and makes no representation or warranty of any kind regarding the applicability or reliability of any of such information with respect to any use whatsoever to be made of it by the recipient. Any information of a technical nature contained in this document may contain inaccuracies and is subject to change and should never be relied upon for operational use.