Bombardier sees robust market for jets

TORONTO (Reuters) - Despite the downturn in the global economy, long-term market fundamentals for the global business jet sector remains solid, said Canada's Bombardier Aerospace.

The Montreal-based planemaker said on Monday that it sees the worldwide business jet fleet growing at an annual rate of about 5.8 percent in a 10-year period between 2009 and 2018.

This will result in the delivery of some 11,500 new aircraft worth about $256 billion.

"Despite the current recession, the market fundamentals are strong in the long term. As the world begins to emerge from this economic crisis, demand should gradually return and future prospects remain solid," Mairead Lavery, vice president of strategy and business development at Bombardier Aerospace, said in a release.

"The anticipated return of global economic growth is expected to result in a strong recovery in the demand for business jets."

Business jets are often viewed as a key indicator for the health of the economy. When times are tough, companies usually cut back on corporate jets as a way to save money and improve public perception.

Bombardier also expects a shift to smaller, more fuel efficient commercial aircraft over the next 20 years as the industry adjusts to being leaner, but more competitive.

The company expects about 60 percent of the current 20- to 149-seat aircraft to be retired over the period, as companies react to higher fuel prices and environmental concerns.

Bombardier sees demand for the 20- to 149-seat commercial aircraft at some 12,400 new planes, worth approximately $589 billion during a 20-year period from 2009 to 2028. Of this total, some 5,800 units are seen in the 60- to 99-seat aircraft segment and about 6,300 planes with 100 to 149 seats.

($1=$1.13 Canadian)

(Reporting by Scott Anderson, editing by Maureen Bavdek)