Bombardier continues to see significant strength in the burgeoning business aircraft market, and the company's Business Aircraft division is on track to meet its forecast of 50 perent growth this year, according to Michael Graff, president of the division.

Challenger production in now at three aircraft per month, and production of the newly-certified Global Express will hit the three-per-month rate early in 1999. In Wichita, the company is producing the new Learjet 45, as well as the Learjet 60 and 31A.

"Our backlogs are so robust that even a few months of uncertainty aren't causing any problems," Graff told Show News.

In fact, some market uncertainty has created new opportunity. For instance, the company has logged some orders in Asia since the economic tailspin sparked by devaluation of the Thai bhat. And while it has also seen some Asian operators sell aircraft, it has seen other North American companies look to expand their ability to travel to and within Asia as they seek opportunity in markets there, offsetting any weakness in the region.

Graff attributes his company's strength to a strategy of developing aircraft that are niche-market leaders, and bundling its hardware offerings with comprehensive, aggressive service and support programs.

"We've got a broad range of outstanding products either in service or in development, and we are really trying to couple that with the same kind of outstanding service so that we can walk in and listen, and not just walk in and talk," said Graff.

"The first step is treating the marketplace and customers as our clients, and not as organizations we do transactions with.

"Serving the client means really trying to exceed their expectations and provide them with the absolute best support you can in terms of product and services and then maintaining relationships over time.

"You aren't going to maintain relationships unless you are adding more than commensurate value for the cost."

Some of those support initiatives have been aimed squarely at the European market. For instance, the company has formed an alliance with Lufthansa and now operates a service center in Berlin, and it recently opened a European spares depot outside London. It expects to begin serving fractional ownership customers in Europe this autumn.

While details are still being worked out, Graff said most likely the company's Business Jet Solutions unit will deploy some of its Learjet 31As to support its Flexjet fractional ownership customers who want to fly in Europe.

However, he said the company still does not see significant demand for fractional ownership from European customers themselves, and will initially focus on providing service for North American customers on business in Europe.

The centerpiece of Bombardier's business aircraft display here is its just-certified Global Express, which was licensed by Transport Canada in August, with FAA and JAA certification to follow sometime later this fall.

Green aircraft deliveries to end-users will begin by mid-October, and the first completed aircraft are slated to enter service in January. The fourth test aircraft, which is fitted with a complete interior, is making extensive customer visits as it completes its function and reliability testing.

Deliveries of the long-delayed Learjet 45 also have begun. Six aircraft had been delivered as of mid-August, and the first British customer took delivery of a Learjet 45 during the Farnborough air show early in September..

Development of the aircraft was delayed in significant part because of difficulties in coordinating design, development and production across Bombardier's various business units like de Havilland, which manufactures the 45's wing, and Short Brothers, which manufactures the aircraft's fuselage. Final assembly of the Learjet 45 is in Wichita.

"Those lessons, as broad and deep as they were, will help us in the future," Graff said.

Indeed, if the 45 program was a model for what can go wrong with partnering, the Global Express, which has no fewer than eight major partners in Europe, Asia and North America, is an example of how well it can work. Even so, Graff said, it will be Bombardier's next generation of product, namely the new 70-passenger CRJ-700 and its new BD-100 midsize business jet, announced here last night, that will really reap the benefits of lessons learned in the 45 program.

If it proceeds on the schedule currently envisioned, the new business aircraft likely will be certified in 2002.

"We want to have a range of outstanding products, each in their segment as a market leader," Graff said.

"Clearly with Global Express and Learjet 45 we are there, and the mature parts of the product line each have their strengths.

"But our direction will clearly be with the new midsize business jet, to make that another jewel consistent with the level of the Global and the Learjet 45," Graff said.

By Perry Bradley