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Aviation History
2004
2004-09 - 2027.PDF
Corporate strategy NAME CALLING Gulfstream's rebranding was more than a simple change of nomenclature. Have the rewards outweighed the risks? GRAHAM WARWICK / WASHINGTON DC CUTAWAY DRAWING / TIM HALL Two years ago, at the showcase National Business Aviation Associ ation convention, Gulfstream sur prised the industry by rebranding and expanding its product line. Out went the hallmark GIV and GV brands, to be replaced by a somewhat-confusing continuum of products ranging from the mid-sized G100 to the long-legged G550. "We have felt for some time that there is a fundamental shift in the marketplace away from deciding which aircraft I want to buy to how do I satisfy the transport requirements of my corporation?" says Gulfstream president Bryan Moss. "A lot of the decisions we have taken flow from that fundamental shift. It led us to believe a fam ily of products was what was important." NBAA 2002 saw the unveiling of an expanded seven-aircraft product line-up, each aimed at a specific price/performance point. Before the announcement, Gulf stream had four models: the ultra-long- range GV-SP, long-range GIV-SP, super mid size G200 and mid-size G100. After the shake-up, the GV-SP became the G550 and the GIV-SP the G400, and two reduced- specification versions of these aircraft were introduced: the G500 and G300, respec tively. The rebranding aligned the expanded large-cabin family with the exist ing G100 and G200 and the seventh mem ber of the line-up, the new mid-size G150. To understand the significance of the move it is necessary to go back to when Gulfstream was a single-product company. From the first flight of the GI in 1958 to the introduction of the GIV-SP in 1992, each Gulfstream's G550 is distinguish ed externally by additional windows new Gulfstream superseded the previous model in production - usually after around 200 aircraft had been built. Each new model gave Gulfstream's select clientele something new to move up into, but with each move up market the company left behind niches that were quickly occupied by competitors offering alternatives. In the 1990s, several events occurred that transformed Gulfstream. In 1990, the com pany was acquired from Chrysler and taken private in an $850 million leveraged buyout by investment firm Forstmann Little. In 1993, the manufacturer announced that the next Gulfstream, the ultra-long-range GV, would be produced alongside the GIV- SP - the first time the company would pro duce two models simultaneously. Galaxy stablemate In 1999, Gulfstream was acquired by General Dynamics in a deal valued at $4.8 billion. Two years later GD acquired Galaxy Aerospace for an initial $330 mil lion and the Astra SP and Galaxy business jets, built by Israel Aircraft Industries (IAI), joined the Gulfstream stable. The mid-size Astra was subsequently renamed the G100 and the super mid-size Galaxy the G200. "We looked at the GIV and the GV. We looked at the Galaxy acquisition. We knew a family had to have some kind of similar ity," says Moss. "After countless hours and days of heated discussion it started to fall into place. There was a symmetry that lent itself to our view of the marketplace." The somewhat shocking outcome was a fundamental revamp of the 45-year Gulfstream franchise. "Were there agonising, difficult deci- 60 12-18 OCTOBER 2004 FLIGHT INTERNATIONAL www.fliqhtinternational.com
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