UPDATE 1-Bombardier sees new Global business jets in service by 2018

(Adds details from event, executive comments, background)
By Euan Rocha
Toronto, Nov 3 (Reuters) - Bombardier Inc BBDb.TO is
confident its all new Global 7000 business jet will meet the
target for entering service in the second half of 2018, the head
of its business aircraft unit, David Coleal, said on Tuesday.
The company, which provided an update on the business jet
program at its facilities in Toronto, said despite obstacles it
has faced, demand for the new jet is strong.
In July, Bombardier pushed back its timeline on the jet that
was expected to go into service in 2016, to the second half of
2018.
"Customers continue to stay with us, because there's nothing
that competes with it," said Coleal. "Our backlog is strong."
Montreal-based Bombardier has run into a string of issues in
recent months mainly due to delays with its CSeries line of jets
that have been delayed for years and are billions of dollars
over budget. The narrow-body jet will compete against Boeing's
BA.N 737s and Airbus Group's AIR.PA A319 and A320 aircraft.
Struggles with the CSeries have left Bombardier saddled with
over $9 billion in debt. The company has been looking at a range
of options to raise cash, including the sale of a minority stake
in its rail arm. Bombardier Chief Executive Alain Bellemare said
an announcement on that is expected before the end of the year.
Last week, Quebec announced plans to invest $1 billion in
Bombardier's CSeries program in return for a nearly 50 percent
stake in the struggling project. At the same time, the company
also announced it was permanently mothballing its Learjet 85
program.
Bombardier's executives have candidly admitted that at least
some of the company's woes have come from it having taken on too
many projects on the go at the same time.
The company believes the Global 7000 will be a game changer
in the business jet segment, as the aircraft is larger in scale
than most rivals in the market and it boasts tremendous range
that would allow it to fly non-stop from New York to Dubai, or
even further.
Testing avionics and structural testing are moving along
smoothly, the company said, adding that it is doing structural
tests on the jet and is moving to a flight validation phase.
The company said it has 10 engines already built for the
aircraft and some avionics testing is already completed.
Bombardier shares were flat in afternoon trading on the TSX
on Wednesday.