Jet Aviation president Peter Edwards said it’s still too early “to call the market bottom,” but he pointed to positive signs emanating from nearly all corners of the industry as an indicator that perhaps the worst of the economic downturn is over.
Business aviation is currently facing numerous challenges, but Gulfstream officials speaking this week at EBACE remained upbeat. “I’ve been in this industry 30 years and I’ve seen many ups and downs,” said Gulfstream president Joe Lombardo, Gulfstream president and executive vice president of parent company General Dynamics. “February was a bad month for us, with a lot of order defaults occurring. But we’re now seeing some positive signs.
The aerospace division at General Dynamics, which includes Gulfstream and Jet Aviation, “held its own” in the first quarter, parent company chairman and CEO Nicholas Chabraja said yesterday during an investor conference call. “A noteworthy accomplishment, I think, in light of business market conditions.” As a whole, first-quarter revenues at General Dynamics rose to $18.3 billion, up 18 percent from the same period last year.
Less than 40 days ago, General Dynamics chairman and CEO Nicholas Chabraja said subsidiary Gulfstream was seeing demand for large-cabin jets hold strong, though he acknowledged that sales of its midsize jets had “dramatically softened.” At the time, Chabraja predicted that Gulfstream would deliver 94 large-cabin jets (seven more than last year) but would more than halve midsize shipments to “about 30.” Today his expectations met the reality of
Bucking the current economic tide, Gulfstream Aerospace and Jet Aviation parent company General Dynamics yesterday posted strong revenues and profits for 2008, thanks in no small part to its aerospace division. Overall the company posted $29.3 billion in revenues and $2.48 billion in profits last year, up from $27.2 billion and $2.1 billion in the respective previous periods.
A recent J.P. Morgan report reassessed the effect of the acquisition of Jet Aviation by General Dynamics “in light of the tough business jet environment.” For 2009 and 2010, the report said, “We are now looking for sales [at Jet Aviation] of $1.4 billion in 2009, a bit below GD’s guidance for $1.5 billion, which had been our prior estimate.
Concluding a transaction first announced in August, General Dynamics last month finalized its purchase of Jet Aviation at a cost of approximately $2.18 billion from Dreamliner Lux, a company controlled by the Permira Funds.
Gulfstream Aerospace parent General Dynamics yesterday finalized its purchase of Zurich, Switzerland-based Jet Aviation from Permira Funds private equity group for approximately $2.18 billion, significantly expanding General Dynamics’s aftermarket service footprint around the world. The deal was originally announced on August 19, but had to be approved by antitrust authorities before closing.
Gulfstream Aerospace parent General Dynamics today finalized its purchase of Zurich, Switzerland-based Jet Aviation for approximately $2.18 billion, significantly expanding the General Dynamics aftermarket service footprint around the world. The move not only increases General Dynamics’s maintenance and completions/refurb capability worldwide but also adds 15 FBOs to its portfolio, including five in the U.S. At Gulfstream’s Savannah, Ga.
Despite what parent company General Dynamics chairman and CEO Nicholas Chabraja termed a “tumultuous period in the markets and dislocation in the financial services sector,” Gulfstream Aerospace “had a terrific [third] quarter.” Aircraft sales in the quarter climbed 4.3 percent as a result of orders for large-cabin Gulfstreams and the new larger-cabin G650, though Chabraja noted there was a “soft spot” in sales of the midsize G150 and, to some