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Gulfstream last week began the flight test program for its new super midsize G250, laying the groundwork for the Savannah, Ga., manufacturer to bring two new aircraft to market in 2011. The G250 completed a three-hour, 21-minute first flight Dec. 11, just two months after its rollout in Israel. The flight took off from Ben Gurion International Airport at 8:16 a.m. local time, flew to 32,000 feet and achieved a maximum speed of 253 knots.
Pilots used the flight to test the G250's flight-handling qualities and characteristics, and performed initial checks of several aircraft systems. "The G250 performed extremely well, just as we expected," said Pres Henne, senior vice president, programs, engineering and test, for Gulfstream. "We're looking forward to 2011, when we'll begin delivering this aircraft to the customers who had tremendous input in its design."
The flight comes just a few weeks after Gulfstream's flagship G650 completed its first flight on Nov. 25 (BA, Nov. 30/265). A landing-gear door vibration cut short that flight, but Gulfstream developed a fix to enable flight testing to resume (BA, Dec. 7/265).
Jay Johnson, president and chief executive of Gulfstream parent General Dynamics, told investors last week that both the G650 and G250 business jets will help lead the company to growth in 2011. "We will begin recognizing revenue and earnings on both of these aircraft in the second half of 2011, making 2011 a growth year for Gulfstream," Johnson said during the Bank of America Securities Merrill Lynch Industrials Conference last week.
Prospects for a market recovery in 2010 are positive, as the global economy recovers, he said. "I believe we have seen the trough at Gulfstream and Jet Aviation in 2009."
Gulfstream's large cabin products are poised to recover first, as positions are sold out next year. In addition, some models are sold well through 2011 and into 2012, Johnson said, adding the company anticipates a modest increase in production in large cabin aircraft in 2010 - "barring any further deterioration in the financial market."
The midsize market continues to struggle, despite modest improvements in the third quarter. But Johnson noted, "This market represents a small portion of Gulfstream's profits and will likely be an even smaller component next year. Our current midsize orderbook would imply fewer midsize aircraft deliveries in 2010."
He added, however, that the market should pick up in 2010, and "I believe our G250 offering is well positioned for entry into service in 2011."
Backlog for GD's Aerospace group - which includes Gulfstream, Jet Aviation and General Dynamics Aviation Services - stood at $19.3 billion at the end of the third quarter. "Although that backlog has declined modestly this year, it remains robust by any standard," Johnson said.
He credited the strong backlog for helping the company navigate through the down cycle. "We go through that backlog & I go through that backlog with the Gulfstream leadership essentially every week, airplane by airplane. We work very carefully, airplane by airplane, order by order, within that backlog to make sure we are in complete alignment with our customers," Johnson said. "We move things around. We massage that very personally, so we have good visibility where we are going with the backlog." He said the orderbook is particularly solid for the large cabins. "We have confidence in what we are saying," Johnson said, but added, "The caveat in all of that, and it's the caveat with everything, is it is dependent on continued recovery of the markets."
Johnson also credited the discipline of the Gulfstream team for solid results in a weak market. "When the market changes, we react to it immediately," he said. This has included aggressively cutting aircraft production levels, reducing employment, shortening service center work weeks and taking five-week furloughs. "Aerospace has done a good job of managing this business through a very tough year. Their actions substantiate the flexibility and agility inherent in Gulfstream's business model." Gulfstream is removing some $60 million in costs, while yielding $10 million in savings, he estimated.
Sales during the first three quarters for the Aerospace group remained at about $4 billion, which stayed flat from the previous year, but Johnson noted, "still handsomely profitable in this industry
Pilots used the flight to test the G250's flight-handling qualities and characteristics, and performed initial checks of several aircraft systems. "The G250 performed extremely well, just as we expected," said Pres Henne, senior vice president, programs, engineering and test, for Gulfstream. "We're looking forward to 2011, when we'll begin delivering this aircraft to the customers who had tremendous input in its design."
The flight comes just a few weeks after Gulfstream's flagship G650 completed its first flight on Nov. 25 (BA, Nov. 30/265). A landing-gear door vibration cut short that flight, but Gulfstream developed a fix to enable flight testing to resume (BA, Dec. 7/265).
Jay Johnson, president and chief executive of Gulfstream parent General Dynamics, told investors last week that both the G650 and G250 business jets will help lead the company to growth in 2011. "We will begin recognizing revenue and earnings on both of these aircraft in the second half of 2011, making 2011 a growth year for Gulfstream," Johnson said during the Bank of America Securities Merrill Lynch Industrials Conference last week.
Prospects for a market recovery in 2010 are positive, as the global economy recovers, he said. "I believe we have seen the trough at Gulfstream and Jet Aviation in 2009."
Gulfstream's large cabin products are poised to recover first, as positions are sold out next year. In addition, some models are sold well through 2011 and into 2012, Johnson said, adding the company anticipates a modest increase in production in large cabin aircraft in 2010 - "barring any further deterioration in the financial market."
The midsize market continues to struggle, despite modest improvements in the third quarter. But Johnson noted, "This market represents a small portion of Gulfstream's profits and will likely be an even smaller component next year. Our current midsize orderbook would imply fewer midsize aircraft deliveries in 2010."
He added, however, that the market should pick up in 2010, and "I believe our G250 offering is well positioned for entry into service in 2011."
Backlog for GD's Aerospace group - which includes Gulfstream, Jet Aviation and General Dynamics Aviation Services - stood at $19.3 billion at the end of the third quarter. "Although that backlog has declined modestly this year, it remains robust by any standard," Johnson said.
He credited the strong backlog for helping the company navigate through the down cycle. "We go through that backlog & I go through that backlog with the Gulfstream leadership essentially every week, airplane by airplane. We work very carefully, airplane by airplane, order by order, within that backlog to make sure we are in complete alignment with our customers," Johnson said. "We move things around. We massage that very personally, so we have good visibility where we are going with the backlog." He said the orderbook is particularly solid for the large cabins. "We have confidence in what we are saying," Johnson said, but added, "The caveat in all of that, and it's the caveat with everything, is it is dependent on continued recovery of the markets."
Johnson also credited the discipline of the Gulfstream team for solid results in a weak market. "When the market changes, we react to it immediately," he said. This has included aggressively cutting aircraft production levels, reducing employment, shortening service center work weeks and taking five-week furloughs. "Aerospace has done a good job of managing this business through a very tough year. Their actions substantiate the flexibility and agility inherent in Gulfstream's business model." Gulfstream is removing some $60 million in costs, while yielding $10 million in savings, he estimated.
Sales during the first three quarters for the Aerospace group remained at about $4 billion, which stayed flat from the previous year, but Johnson noted, "still handsomely profitable in this industry
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