Identifying market segments and targets-at this writing


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Identifying Market Segments and Targets

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At this writing, Bombardier is in the very late stages of bringing to market its new series of mid-sized, cost- and fuel-efficient line of C Series commercial airliners. Flight tests began in September 2013, with initial production orders, the commencement of which has been repeatedly delayed, now scheduled to be filled starting this July with a first delivery to launch customer Swiss Airlines. Up until April of 2016, Bombardier had firm orders totalling 243 aircraft, the number which had been frozen for over 19 months.

However, two recent developments have significantly changed the landscape and potential future prospects for the C Series. On April 28, 2016 Delta Airlines signed a new agreement to purchase some 75 C Series aircraft with an option to purchase an additional 50 aircraft:

https://www.bloomberg.com/news/articles/2016-04-28/bombardier-wins-delta-order-in-key-boost-to-c-series-program

Bombardier Gets Delta Airlines Order of up to 125 C Series ...

www.bloomberg.com

Bombardier Inc. landed the coveted U.S. customer it's been seeking for its C Series narrow-body jetliner, as Delta Air Lines Inc. agreed to buy at least 75 of the ...

Additionally, earlier in April, Air Canada had announced that it was close to firming up a deal for an order for some 45 C Series aircraft:
https://business.financialpost.com/news/transportation/air-canada-will-firm-up-bombardier-inc-cseries-order-within-weeks-ceo-says
With these new commitments, current sales at the end of April 2016 sit at 325 aircraft. Bombardier has exceed its goal to obtain firm orders for over 300 aircraft before their initial launch.

There are presently four major manufacturers of commercial airliners globally. Airbus and Boeing are the largest by far. Embraer of Brazil and Bombardier follow in third and fourth positions respectively in this potential market segment although some new players are on the horizon with Russian, Japanese, and Chinese companies also as potential competitors.

It is important to recognize that, among the four key competitors, the Bombardier C Series aircraft represents the first entirely new model being specifically developed for the mid-size market (100-150 passengers). It is a state-of-the-art aircraft, boasting overall operating cost reductions of 15% and consuming 20% less fuel than its rivals. Airbus, Boeing, and Embraer have each announced the development of modified or "catch-up" versions of their existing airframes to compete for this market (Airbus with its 319/320/321 Neo; Boeing with its Max 737; and Embraer with its EM 190/195).

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