Gulfstream reports record orders
In the fourth quarter of last year, Gulfstream Aerospace reported receiving orders for 34 aircraft, the largest number it has ever received in a three-month period. Saying, “We entered 2004 with an improving economic outlook for business aviation,” the company claims it has already sold out nearly 70 percent of this year’s planned production, adding that new customers can’t get a delivered Gulfstream until next year. The company also acknowledged that an economic downturn raises the “old bugaboo” of cancellations. Gulfstream said it had cancellations for 12 aircraft last year, twice as many as in 2002. To help reduce the incentive to cancel, Gulfstream said “cash terms are stronger” and that it has taken steps to “tighten contract” requirements. “Frankly, we are much less accommodating.” Gulfstream projects delivering 75 aircraft this year, one more than was actually delivered last year, compared with 85 in 2002 and 101 in 2001.