Emerging Economies Will Drive Emerging Markets

At a news conference at the EBACE air show in Geneva this week, Gulfstream President Joe Lombardo told journalists that "The 10th anniversary of EBACE corresponds with the maturing of the international business-jet market, certainly in Europe, but also increasingly in emerging economies." 

Lombardo said one of the most compelling realities affecting jet-powered, general aviation aircraft has been the shift in the demographic make-up of the installed fleet.  "It was not too long ago that approximately 80 percent of that fleet resided in North America," he noted.  "While this region still represents the majority of global usage today, the percent continues to decline year after year.  Regions such as Asia/Pacific, Eastern and Western Europe, South America and the Middle East and Africa have provided incremental boosts to aircraft delivery and product support service volumes."

In Asia, the Gulfstream fleet has grown from 27 Gulfstream aircraft in 2001 to more than 110 today. In Europe, the fleet has grown from 62 to more than 160 over the last decade. "We'll see more significant growth ahead," Lombardo said. "The principal challenge is how best to provide regional support for aircraft owners who reside in growing markets.  It is not reasonable to expect our clients to bring their aircraft to a site that is convenient to the manufacturer. Whether it is warranty, line or heavy maintenance, customers want access to centers in close proximity to home base.  This means our industry must develop these capabilities on our own or enter into third-party agreements with companies better equipped to deal with the nuances of in-country relationships.  Just as important is the fact that it requires a commitment by the OEM to provide parts and technical support to a growing number of regions around the world."

G650 Flight Test

In Europe, Gulfstream's Luton factory service center serviced nearly 1,100 Gulfstream aircraft in 2009. The Luton facility has 14 foreign authority approvals. Lombardo also pointed to a service agreement with Chinese charter operator Deer Jet, which places Gulfstream technicians directly within the Deer Jet service organization. Worldwide, the company has deployed a parts inventory of $1.2 billion in strategic locations on all continents with the exception of Antarctica.

One of the principal challenges globally, including Europe, he said, was ensuring the availability to finance aircraft transactions. The company has been working with the Export-Import Bank of the United States to assist in arranging transactions with notable successes.

G250 First Flight

Lombardo said Gulfstream performed well through the recent period of economic turmoil. "The company has responded quickly to the downturn, reducing production and costs, while continuing to invest with an eye toward industry recovery and the long term."

Gulfstream continues to focus on new technology and new aircraft programs, he said. "Throughout the downturn we have not slackened the pace on the development of our G250 and G650 aircraft. Our flight-test programs are very active and we are encouraged every day by what we see." The G250 is slated to enter service in 2011 and the G650 in 2012.

FMI: www.gulfstream.com