Israel Aircraft Industries (IAI) is implementing severe measures, including price cuts, to keep its business jet production line open as partner Gulfstream tries to stimulate demand for the Israeli-built G100 and G200. IAI says production continues "with every step to cut costs until this crisis is over".

Production of the super mid-size G200 (formerly Galaxy) has dropped to an all-time low of six-to-seven a year, and output of the mid-size G100 is even lower. Gulfstream recently completed a three-month tour of the USA and Mexico with the G200, which it says resulted in several sales prospects and letters of intent.

According to parent company General Dynamics, Gulfstream produced 11 green G100s and G200s in the first half of the year, down from 18 in the same period last year. The company delivered only five completed G100s and G200s, down from 18 a year earlier.

Gulfstream says it expected demand for the ageing G100 to dwindle after it launched the improved G150. Unveiled late last year, the mid-size G150 will combine the high-speed wing of the G100 with a wider fuselage and new engines.

Source: Flight International