Dassault and Gulfstream are cutting production as a business aviation recovery looks increasingly elusive. Gulfstream plans to build 77 aircraft this year, down from the 85 forecast at the beginning of the year. The company delivered 85 green aircraft last year, about the same number as in 2001.
At the beginning of the year, Gulfstream reduced planned production of its large-cabin G300/400/500/550 by five to 56, but increased output of its mid-sized G100/200 to 29. Now Gulfstream has cut production to 53 large-cabin and 24 mid-size aircraft.
Dassault delivered 66 Falcons last year, down from 72 in 2001, and planned to produce a similar number this year. But the French company will reduce production to four a month by next year, down from six or seven a month in 2001. Both companies are concerned about the backlog of orders for delivery in 2004 and beyond.
While order intake for both manufacturers held up last year, there is a dearth of deliveries next year. Dassault booked 72 orders last year, down from 79 in 2001, while Gulfstream added 62 large-cabin and 71 mid-size aircraft, compared with 60 and 63, respectively, a year earlier. But just under half the Gulfstreams for delivery in 2004, and all the aircraft in firm backlog for 2005 and beyond are for fractional ownership operator NetJets.
Parent company General Dynamics (GD) says reducing production will help stretch Gulfstream's firm backlog, which stands at over $4 billion. The company's delivery backlog is worth almost $1.8 million for this year, but just under $1 billion for 2004. "We would like to go into next year with a $1.5 billion backlog for delivery in 2004," says GD chairman Nick Chabraja.
Source: Flight International
