Private buyers and jet share companies are BEGGING for new jets, and Bombardier is stepping up in a big way.
The jet maker plans to increase aircraft production substantially in the coming year to take advantage of the high demand for private jets, despite facing numerous challenges that could impede the progress of its turnaround plan.
The Canadian manufacturer of business jets stated it hopes to increase production in deliveries of 15-20 percent as early as 2023 after a slight rise in the year prior. And they’re going to need a lot of people to help. The company is currently looking for nearly 1,000 employees for different positions and is planning to recall a few employees to fill these positions and reverse the trend of layoffs that have occurred in the past. The main factories are within Montreal in Canada and Toronto.
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As the market for commercial aviation was struggling with the COVID-19 pandemic, The use of business aircraft increased up to 42 percent in the United States and 33 percent in Europe in 2021.
Flight cancellations, apprehension of being exposed to the virus, as well as increasing wealth among ultra-rich 275 billionaires around the globe who have seen their total wealth rise by $5 trillion have helped boost demand for private planes. The demand for luxury has led buyers to buy used business jets and have driven the amount of available aircraft down to 3.6 percent of the global fleet, which is the lowest since 1989.
Bombardier has said that it expects the customers to purchase new jets to increase in the coming months when economies continue to re-open. The company has said it plans to ship around 120 jets in the coming year.
Bombardier is facing pressure on multiple aspects and disruptions in supply chain management are near the top of the list. A few of the company’s smaller suppliers are also suffering from shortages of labor. The company sent a group of its experts to various regions to help identify and resolve any issues.
So what do you think? Can Bombardier step up and deliver the jets the market needs so badly? We would love to hear from you so let us know in the comments below. Thanks for watching and have a great day!
