ISTAT Jetrader - Autumn 2019 - 47

Connection carrier, was Atmosphère's
launch operator with first delivery in
the second half of 2018. Subsequent
CRJ900 orders (all with Atmosphère),
were 15 from American in May 2018,
four from Uganda Airlines in July 2018
and nine from Canada's Chorus in
February 2019.
The CRJ900's primary competitor
is the Embraer E175. Both seat 76
in typical first/premium economy/
economy configuration. However, with
nearly identical engines, the CRJ900's
lower base MTOW of 80,750 lbs versus
85,517 lbs for the ERJ175 drives lower
cash operating costs. Despite this, the
E175 has seen more success with 773
orders versus 487 for the CRJ900 and
backlogs of 196 versus 51, respectively,
as of 31 March 2019.

Market Outlook
The overall commercial aviation market
has been seeing steady growth globally
owing to continued economic growth
and relatively stable fuel prices.
Historically, orders for regional jet
markets have been more volatile as a
significant component of demand has
been pilot scope clauses in the United
States and their changes over time.
Current U.S. airline scope clauses
are conducive for the continued success
of CRJ900 and E175 programs, as
the E175-E2 and Mitsubishi's MRJ90
would not be scope clause compliant.
Mitsubishi's SpaceJet M100, whose
development is expected to formally
launch later this year, will also compete
in this space. The M100 program
effectively replaces the MRJ70 program,
which would not have been competitive
with seven fewer seats than both the
CRJ900 and E175 versus planned parity
for the M100. Material relaxation of
scope clauses is not expected in the
foreseeable future as evidenced by the
deferral of E175-E2 production, the
expected launch of the M100 being
tailored to current U.S. scope clauses,
significant orders of the E175 by U.S.
carriers in the past year, and United

CRJ900 DELIVERIES PLUS FIRM ORDERS
13,3%
43,9%
106,22%
13,3%
17,3%
295,60%

Africa
Asia
Europe & CIS
Latin Americas
Middle East
North Americas

E175 DELIVERIES PLUS FIRM ORDERS
7,1%
11,2%
38,6%
0,0%
7,1%
603,90%

effectively ordering a CRJ550 (based on
CRJ700) with only 50 seats to comply
with its current scope clause.
Weighing on CRJ900 values are
its limited backlog, with Bombardier's
CEO indicating in April that keeping
the product line going is dependent on
filling up the backlog; its concentration
in the United States restricting trading
and transition opportunities (but
significantly less concentrated than

Africa
Asia
Europe & CIS
Latin Americas
Middle East
North Americas

the E175 as shown in the pie charts);
Mitsubishi's potentially acquiring
the CRJ program; as well as trade
tensions between the United States
and Canada. Should new orders not be
received in the near future or postacquisition, Mitsubishi not committing
to continue with the CRJ900 program
or changing the trade name for CRJ,
the CRJ900 could see values declining
in the future. 

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ISTAT Jetrader - Autumn 2019

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