Bombardier Aerospace Releases Annual Market Forecasts

Bombardier Aerospace today released its annual 20-year forecasts for the
business and commercial aircraft markets during a pre-Farnborough media event,
held at its headquarters in Dorval, Quebec, that was simultaneously webcast.


As the business and commercial aircraft markets continue to recover from the
industry downturn, indicators are mixed, yet trending positively. New aircraft
orders are supported by continued demand from developed markets and growth
potential in emerging markets, which are forecasted to play an increasingly
important role in the global aviation marketplace. Operators industry-wide
remain focused on fleet optimization and aircraft efficiency as fuel prices and
environmental concerns rise. 


"We have built our leadership position in aviation by continuously pushing the
boundaries of product development to better meet the needs of our customers,
both those who operate our aircraft and those who use them as a mode of
transportation," said Mairead Lavery, Vice President, Strategy, Business
Development and Structured Finance, Bombardier Aerospace. "We will continue to
deliver industry-leading mobility solutions, and we are positioning ourselves
for a period of growth by pursuing our international expansion strategy to be
closer to our customers in traditional and emerging markets."


Business Aircraft Market Forecast

Bombardier is confident in the strong, long-term potential of the business
aircraft industry and forecasts a total of 24,000 business jet deliveries from
2012 to 2031 in all segments in which Bombardier competes(i), which represents
approximately $648 billion US(ii) in industry revenues. The Bombardier Business
Aircraft Market Forecast anticipates 9,800 aircraft deliveries, worth $266
billion US, from 2012 to 2021 and 14,200 deliveries, worth $382 billion US, from
2022 to 2031.


While the business aviation market continues to recover, current market
indicators are mixed. Market confidence needs to be fully restored for industry
business jet deliveries to increase strongly and enable the industry to realize
its full potential. Deliveries are expected to lag order intake as manufacturers
strive to maintain acceptable backlog levels, and business jet industry
deliveries for 2012 are expected to be comparable to 2011. Bombardier believes
business jet industry deliveries will return to sustained growth starting in
2013, with the Large aircraft category demonstrating the fastest growth. 


Over the forecast period, Bombardier predicts that North America will receive
the greatest number of new business jet deliveries between 2012 and 2031 with
9,500 aircraft, followed by Europe, with 3,920 aircraft. Notably, China will
become the third largest market for business jet deliveries, with 2,420
deliveries from 2012 to 2031. Bombardier also expects key growth markets,
including Brazil, India, Russia and the Commonwealth of Independent States
(CIS), Indonesia, Mexico, South Korea and Turkey, to receive a significant share
of business jet deliveries during the next 20 years.


Through its investment in innovative transportation solutions, Bombardier
continues to lead the evolution of the business aviation industry. New aircraft
development programs, including the Learjet 70, Learjet 75, Learjet 85, Global
7000 and Global 8000 jets, position Bombardier for long-term market leadership,
and the Company remains committed to the international expansion of its services
portfolio to better meet the needs of its customers.


Commercial Aircraft Market Forecast

Bombardier Aerospace's 20-year view of the 20- to 149-seat commercial aircraft
market calls for 12,800 deliveries from 2012 to 2031, generating over $630
billion US in sales revenue. This represents a decrease of 300 units (2.3 per
cent) compared to last year's forecast, mainly due to a lower GDP forecast and a
sharp increase in the forecasted oil price.


Bombardier's forecasted industry deliveries by segment are:



--  20 to 59 seats: 300 aircraft deliveries 
--  60 to 99 seats: 5,600 aircraft deliveries 
--  100 to 149 seats: 6,900 aircraft deliveries



In the 60- to 99-seat commercial aircraft market, Bombardier expects that scope
clauses in North American and European operations will continue to ease to meet
growing demand in this market segment, valued at more than $180 billion US over
the 20-year forecast period. In the 100- to 149-seat segment, a shift in focus
towards aircraft that are optimized for their intended segments is expected to
be a catalyst for demand as airlines move away from derivatives of larger
aircraft that were originally designed for larger capacity. Deliveries from 2012
to 2031 in the 100- to 149-seat segment are forecast to be worth more than $449
billion US.


The global demand for air travel and new aircraft continues to shift towards
emerging markets. In 2011, Bombardier increased the size of its commercial
aircraft sales team, placing a strong emphasis on these regions to meet this
demand. However, as with the business aircraft industry, North America is
expected to lead the way in aircraft deliveries over the forecast period, taking
in an expected 4,730 new aircraft, followed by China, with 2,220 aircraft, and
Europe, including Russia and the CIS, with 2,240 aircraft.


The Bombardier Commercial Aircraft Market Forecast predicts that more than half
of the current commercial aircraft fleet will be replaced in the next 20 years -
a slightly greater percentage than expected last year. Technical obsolescence,
cost inefficiencies and age are driving the increasing pace of older aircraft
retirements, which will in turn have a positive impact on demand for new
aircraft. In addition, although high oil prices will continue to challenge
airlines' profitability, the arrival of new, technologically advanced aircraft
that deliver direct operating cost reductions will accelerate the retirement of
older, less fuel-efficient aircraft.


With its optimized Q400 NextGen, CRJ NextGen and CSeries commercial aircraft,
Bombardier is extremely well positioned to meet the demand for sustainable
transportation solutions that marry advanced technology, operational efficiency
and passenger appeal.


About Bombardier

Bombardier is the world's only manufacturer of both planes and trains. Looking
far ahead while delivering today, Bombardier is evolving mobility worldwide by
answering the call for more efficient, sustainable and enjoyable transportation
everywhere. Our vehicles, services and, most of all, our employees are what make
us a global leader in transportation.


Bombardier is headquartered in Montreal, Canada. Our shares are traded on the
Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability
World and North America indexes. In the fiscal year ended December 31, 2011, we
posted revenues of $18.3 billion USD. News and information are available at
bombardier.com or follow us on Twitter @Bombardier.


Notes to editors

Follow @Bombardier_Aero on Twitter to receive the latest news and updates from
Bombardier Aerospace.


(i) Bombardier's competitive segmentation includes Light, Medium and Large
categories. Excludes very light jets and large corporate airliners. 


(ii) Unit values are based on B&CA magazine 2012 list prices expressed in US$

Bombardier, CRJ, CSeries, Global 7000, Global 8000, Learjet 70, Learjet 75,
Learjet 85, NextGen and Q400 are trademarks of Bombardier Inc. or its
subsidiaries.


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respective Guidance and forward-looking statements sections in Overview,
Bombardier Aerospace and Bombardier Transportation sections in the Management's
Discussion and Analysis ("MD&A") in the Corporation's annual report for the
fiscal year ended December 31, 2011. 


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