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.