Bombardier's steadily increasing Asia-Pacific market presence received a major jolt in mid-January when Korean Air began revenue flights with the CS300, becoming the region's first C Series operator and ushering in what the OEM believes is a new era of small single-aisle activity.

"This is a very important milestone for the C Series program, because it is our breakthrough into the fast-growing Asian market," said Fred Cromer, president, Bombardier Commercial Aircraft. Bombardier (Static Display CD55) sees Asian operators putting 2,870 small (60- to 150-seat) single-aisle aircraft in service in the next two decades, and Korean is an ideal carrier "to showcase the CS300 aircraft's outstanding performance and capabilities," he added.

Korean, which has ordered 10 CS300s, will use its newest fleet type to right-size capacity on regional routes now flown by larger narrowbodies. "These regional routes are the aircraft’s first priority," the carrier said in a statement. "Korean Air may later take advantage of the CS300 aircraft’s range and expand internationally."

The carrier's 127-seat CS300s also introduce a new wrinkle: a 25-seat premium economy section. The cabin features a 2-by-3 layout, including 19-inch (48-centimeter)-wide middle seats.

Bombardier is hopeful that the C Series will further strengthen its Asia-Pacific presence, and believes that the aircraft's early track record bodes well for new operators. Korean is the third airline to take delivery of a C Series-family model, following Lufthansa Group carrier Swiss Global and Air Baltic.

"There is a lot of excitement around the C Series," Cromer said. "The other thing that I'll tell you about entering [into] service is that we're really being tested. We have Swiss on the one hand, that's flying a very high cycle environment—shorter flights, airplane up and down—in congested hubs everyday. And on the other end of the spectrum, we've got Air Baltic, which is flying the aircraft on longer flights but for 15, 16, 17 hours a day of utilization, which is phenomenal for a brand-new airplane."

At the end of 2017, Bombardier had delivered 24 C Series aircraft, including 17 last year. Its target for 2018 is 40, with plans to ramp up to 90-120 annually starting in 2020, depending on demand.

"We are very mindful of not taking on undue risk in our business in terms of white tails," Cromer emphasized. "What that means is we're going to make sure that we balance what we see, year by year, as the demand, with the supply, in terms of what we're producing."

Plans for CRJ and Q400

While Bombardier Commercial's focus is clearly on the C Series, it is not abandoning its more established products. Quite the contrary; it sees rising demand in emerging markets like China as ideal for its CRJ and Q400 product lines. "On the CRJ, we're continuing to deliver that airplane into Asia, with the likes of China Express, expanding the markets, developing the regional market in key areas in China," Cromer said. The aircraft is "very critical to their overall strategic plan," he added.

Even in mature markets—notably North America—the aging of regional fleets that began to expand two decades ago bodes well for near-term sales.

“I think the replacement cycle is real and I think it’s coming, and we’re well positioned,” Cromer said. 

Key drivers include fuel prices, aircraft age, and an up-gauging trend that has resulted in, for example, 70-seat aircraft replacing 50-seat regional jets (RJs). Fuel has stayed relatively cheap since mid-2014, which has helped make 50-seat RJs marginally economical to operate. Eventually, though, their operators will park them, and Cromer sees room for the CRJ900 and 1000 series to gain traction. 

“If you look at the fleet plans of the major airlines, they’ve continued to see, over time, phasing those out, and up-gauging to larger aircraft, which we think benefits primarily the CRJ900,” he said.

Another boost will come from the CRJ’s new Atmosphere cabin, the company says. Unveiled in September and slated to appear on customer aircraft starting in mid-2018, the new cabin reflects a response to customer calls for a more appealing interior.

“We canvassed the marketplace and we talked about the specific requirements as our customer base [looks] forward on the CRJ,” said Cromer. “Overwhelmingly, the answer was on making a better solution to get more cabin stowage and refresh the interior.”

The most noticeable changes include larger overhead bins that can accommodate more bags, cutting down on plane-side bag checks. Other additions include in-seat power and standard mood lighting. 

While timing of a sales uptick remains elusive, Bombardier is adamant that a major opportunity resides in the large regional-aircraft space. Its most recent forecast projects demand for 5,750 sixty- to 100-seat aircraft through 2036.

Bombardier's Q400 is in the midst of its own renaissance. A 50-aircraft order from India's SpiceJet, finalized in September, brought several milestones. It was the largest-ever single order for the type, and paved the way for Bombardier to introduce a 90-seat configuration.

"The Q400 continues to serve a real need in emerging markets," Cromer said. "While the industry was talking about the potential need for a larger-capacity turboprop, well it's already here.  We feel very good about where we are with the program and look forward to continuing to make progress and earning more of our fair share of that market as we look ahead."