Bombardier faces new business jet competition from Gulfstream

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Gulfstream Aerospace Corp. is turning up the heat on rival Bombardier Inc. with the launch of two new high-speed business jets.

As the battle for the higher margin, luxury end of the business-jet market intensifies, Gulfstream on Tuesday unveiled its new G500 and G600 large-cabin planes that take direct aim at Bombardier's Global 6000 as well as Dassault Aviation's Falcon 5X.

The G500 and G600 will occupy the category between the G450 and G550 models, and the G650.

Montreal-based Bombardier is developing two new models – the Global 7000 and 8000 – to add heft to its existing 5000 and 6000 line.

"The Global 5000 and 6000 are going to get competition from this [G500, G600] product and from the Falcon 5X," vice-president of analysis at consulting firm Teal Group Corp. Richard Aboulafia said.

Bombardier's focus on developing its new, trouble-prone C Series commercial jet has had a negative impact on its business-jet division, he said.

"Bombardier had the world's number one business-jet unit but thanks to the C Series it's now everyone's lunch," he said.

"What they have to do is keep the 7000 and 8000 on track and get the Learjet 85 back on track as well as find the cash as quickly as possible to reinvent the 5000 and 6000 segment."

The 7000 and 8000 are slated to begin delivery in 2016 and 2017, respectively.

Bombardier has experienced delays in the development of the 10-passenger Learjet 85, which is in the larger-cabin end of the midsize market.

Late last year, the company said it was replacing the head of its business-jet unit, Steve Ridolfi, with Bombardier executive Éric Martel.

Bombardier lost its global number one ranking for business-jet sales last year to Savannah, Ga.-based Gulfstream, a division of defence giant General Dynamics Corp.

Bombardier business-jet officials were not immediately available to comment Tuesday.