But Company Will Produce Fewer Planes In '09 Thanks To Slumping
Economy
During the company's annual financial analysts meeting Thursday,
Dassault Aviation Chairman and CEO Charles Edelstenne announced
sales results for 2008. Dassault received a net total of 115 firm
orders worldwide for Falcon business jets in 2008... a marked
decline from the record 212 orders received in 2007.
Dassault Aviation's 2008 consolidated sales were 3.75 billion
Euros ($5.13 billion US) with Falcon business jets accounting for
62% of that total. Dassault delivered 72 Falcon business jets for
entry into service in 2008. The delivery rate of completed Falcons
is expected to increase to 90 aircraft in 2009, though production
of green aircraft will be reduced as market conditions demand.
In yet another disturbing economic portent, Dassault received
more order cancellations than new orders for the past two quarters,
reports Bloomberg.
"There is no doubt that we are in the midst of a very
challenging economic environment. However, Dassault has always
taken a long term view," said Edelstenne. "We will continue our
ongoing investments in customer support as well as technology and
innovation. A major expansion for our company owned Service Center
network is also on schedule. The Falcon 2000LX will be certified
soon. EASy Phase II development is accelerating and development of
the SMS continues."
"We began to see a slowing in demand in late 2007 but the level
of activity remained strong through the first three quarters of
2008," said John Rosanvallon, President and CEO of Dassault Falcon.
"The fourth quarter of 2008 was challenging with rising preowned
inventories and a significant contraction of available credit."
In happier news, Dassault officials noted the company grew its
factory support capabilities significantly in 2008, announcing two
new service centers in Reno, NV and Sorocaba, Brazil. Dassault also
wrapped up expansion projects at its current facilities in Le
Bourget, France and Little Rock, AR, and opened a joint parts
distribution facility with UPS in San Jose, CA.
Rosanvallon pointed to those efforts as part of the company's
commitment to the value of business aviation... something that
defies economic trends, and public perception.
"While we all must deal with the crisis we are currently facing,
it is important to remember that there are enduring facts regarding
the advantages of business aviation, Rosanvallon continued. "These
facts are critical to aircraft operators who rely on their business
jet for their efficient transportation and as a key driver to
expansion and growth of their organization," said Rosanvallon.
"Growth is also vital to the economies that rely on business
aviation for high paying jobs in manufacturing, operations and
support. When they're combined, our industry is critical to the
successful conduct of international commerce that will lead us out
of today's difficult environment."
ANN's Daily Aero-Linx (04.15.24)
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