The certification testing program for Gulfstream’s ultra-long-range G700 continues to progress with approval anticipated in the third quarter, according to parent company General Dynamics chair and CEO Phebe Novakovic, who gave an update on the large-cabin jet this morning during the company’s first-quarter earnings call.
“We continue to target certification of the G700 for late summer this year,” she said during the conference call, describing the new company flagship as a mature, high-quality aircraft. “Production is well underway and we are preparing for entry into service.”
Between test aircraft and production versions, the Savannah, Georgia-based airframer has produced 30 G700s thus far, according to the FAA registry. As it continues to stockpile completed aircraft ahead of the start of deliveries, Gulfstream has seen a temporary dip in its profits.
“Frankly, these first two quarters are aberrational in terms of Gulfstream margins,” said Novakovic. “We plan to deliver a considerable number of G700s in the third and fourth quarters. To do that, we must build them now and incur some period costs without the related revenue. This has impacted the first quarter and will impact the second quarter, but relief is in sight as deliveries commence.”
The original certification plan for the G700 would have seen the aircraft potentially receiving FAA approval as early as the end of 2022.