Bombardier's (BBD-B.TO) chief executive says the company is well positioned to take on growing competition in the so-far resilient business jet market, as the plane maker looks to expand into the defence sector.
Speaking at an investor day this week, CEO ric Martel said the company has ruled out plans to develop a new, clean-sheet aircraft in the next five years. He says Bombardier's current portfolio of aircraft remains competitive and that existing technology in the market would not justify such an investment.
"As of today, I don't see any new technology (that's a) game changer coming in that will justify me to go out there, talk to the board and justify a clean sheet. I don't see it, and the team doesn't see it," Martel said.
"You need something that will really be a revolution."
While a new aircraft will not be in the works over the near term, Martel says the company will be making improvements to its existing product offerings.
Bombardier has been steadily growing its market share in the business jet market over the last several years since it shifted its focus to private planes. Demand for private jets has remained resilient despite economic concerns, while at the same time competition among manufacturers has been heating up. Rival General Dynamics' Gulfstream G700, which competes with Bombardier's large Global 7500, received certification from the U.S. Federal Aviation Administration last month.
Martel shrugged off the competition, saying it fell short as a response to the Global 7500.
"It falls short as a response, because it actually doesn't achieve the type of performance we've been achieving for the last five years," Martel said.
"On top of that... we're going to come out with the Global 8000 next year, which is going to surpass our own performance and will remain a flagship of the industry... We have the right product line to compete and win in the medium and large segments."