Gulfstream Deliveries Drop Off During 'Production Transition'

Third-quarter deliveries of completed business jets at Gulfstream plunged 37.2 percent as the company works through a “planned production transition” from the legacy G450 and G550 to the new, fly-by-wire G500 and G600, Phebe Novakovic, chairman and chief executive officer at parent company General Dynamics, said this morning during an investor conference call. However, she said order intake at Gulfstream was “the strongest third quarter since 2011,” adding that she is optimistic that this sales momentum will continue in the current quarter.

Gulfstream handed over 27 completed aircraft (21 large-cabin and six midsize jets) in the quarter, compared with 43 jets (31 large, 12 midsize) in the same period last year. For the first nine month, it shipped 88 jets (67 large, 21 midsize) versus 116 (89 large, 27 midsize) a year ago. Book-to-bill was 1.2:1 during the quarter, though backlog slipped by $300 million, to $11.5 billion, because of aircraft mix.

Addressing the transition between the legacy and new Gulfstreams, she said the G500—which will replace the G450 in the product line-up—is “progressing well” through flight testing and is on pace to be certified next year, with entry into service and initial deliveries now expected by year-end 2017. This is slightly earlier than previous estimates. The G600—which will succeed the G550—is expected to fly “soon” and follow one year behind the G500.