General Dynamics chair and CEO Phebe Novakovic called the lack of approval for the Gulfstream G700 among the “things that sort of surprised us” in 2023, but she maintained that its Savannah, Georgia business aviation division is on a good track for type certification.
Speaking during a recent Cowen 45th Annual Aerospace & Defense Conference, Novakovic said, “We’re largely done. And we're simply waiting for the FAA to conclude its deliberation, so we're on track. It's just—that is as we've been quite open—not a process that we control.”
Gulfstream had hoped for certification by the end of last year and anticipated delivering as many as 15 before the end of last year, but the prolonged approval process has shifted those deliveries into this year. As a result, Gulfstream anticipates a 44 percent bump in deliveries this year.
Going forward, she said the order pipeline remains at a “nice solid pace,” particularly in the U.S. General Dynamics has projected a 39 percent increase in revenues this year.
Along its marketing lines, Gulfstream, which recently exhibited at both the Singapore and Dubai airshows, is planning to continue its strategy, for now, of focusing on such regional events instead of the major business aviation conventions. The manufacturer confirmed it would not be exhibiting at EBACE this May in Geneva.
Meanwhile, Gulfstream continues to grapple with the supply chain alongside the rest of the industry, although Novakovic said in aerospace it is improving. She pointed out that Gulfstream delivered 39 aircraft in the fourth quarter, compared with 24 and 25 in the previous quarters. “That was permitted by improvements in the supply chain,” Novakovic said. “that said, there are still elements of the supply chain that are struggling….the ramp up this year will begin to tax them.” However, she emphasized Gulfstream has a balanced plan and understands the supply chain.
But another challenge has been the conflict involving Israel and Hamas, which has hampered operations at its manufacturing partner on the G280 program, Israel Aircraft Industries (IAI).
Novakovic said IAI has done a “good job replacing those who were called up to military service with retirees and management. We have factored all of that into our plan.” She further said the company is a little ahead on its production plan. “We like where we are right now with them in terms of how we have de-risked that profile.”