Gulfstream Execs See Steady Market
Deliveries will remain flat, but North America and Europe has improved for manufacturer, incoming president Mark Burns said.

While deliveries dipped slightly in the first quarter, Gulfstream executives say they are not seeing an appreciable difference in the market. Gulfstream’s large cabin deliveries were down by two in the first quarter and down by four to 117 in 2014. “Some deals are taking a little longer to get done,” said Mark Burns, who is set to succeed Larry Flynn as president of Gulfstream on July 1, “but it was still a very good quarter.”

The company has expected deliveries to remain relatively flat for this year. The strength of the North American market has helped offset the slower regions such as Russia. The European market, meanwhile, also has improved, said Burns, speaking to reporters on “Breakfast over the Alps” flight.

Scott Neal, senior vice president of sales and marketing, added the company is seeing fairly solid activity throughout the product line, but particularly on the 650/650 ER. He attributes the strength in sales to a backlog of 650 that is now about three years.

The edition of the extended-range variant also has helped generate interest in orders, keeping the backlog filled.

While the new products, the 500 and 600, are also gaining attention, Neal said the 450 and 550 are still selling. Back. A key to the 450 and 550 success now is availability. Backlog for the 450 and 550 are about a year. The 500 and 600 are several years from reaching market. Also, he said, the 450 and 550 “are very different airplanes,” from the new models in development. Noting hat the company has delivered about 320 450s and 500 550s, he said the models remain strong in their market segment.

The mid-cabins had languished at low levels leading up to the market entry of the 280. But Burns noted that as new products generate interest, the 280 deliveries have become steady. Mid-cabin deliveries in the first quarter were up by one unit, and they were up by 10 units in 2014. The market for the 150, however, has remained “very slow,” he said, but added that there has been some activity during EBACE on that model.

Burns, who like Flynn has served as president of product support before stepping into the role of president, agrees that his appointment underscores the emphasis that the company places on product support. “We have long believed that service sells airplanes,” said Burns, who a 32-year veteran of the company. “It is a huge focus. Of our 16,000 workers, almost 5,000 are involved in product support. It is part of our core business.”