On the Record with
RICHARD GAONA, VICE PRESIDENT, AIRBUS CORPORATE JETLINER

Order for 'Many' ACJs Is Expected Here

Richard Gaona of airbus says strong airliner demand is keeping A319s scarce.

A multiple order for Airbus Corporate Jetliners is expected to be announced this NBAA by a single customer, according to chief salesman Richard Gaona.

The customer has ordered "many" of the A319CJ Corporate Jetliner, he told Show News.

The order is welcome news for a program that is way behind those of its competitors in numbers of aircraft sold. Yet Airbus executives say they are satisfied with the program's progress, because every sale only adds to the impressive success of the company's line of narrowbody aircraft on which the ACJ is based.

Gaona expects there to be eight ACJs in service by the end of this year. Of those, four will be registered in Europe and three in the Middle East.

While Gaona would like to have more ACJs to offer the market, because the plane is built on the same assembly line as the A319 he can only increase production if general A319 production is also increased. The Airbus Corporate Jetliner organization will receive five ACJs this year, six in 2001 and eight in 2002. Six aircraft will be delivered to customers this year, according to Gaona.

"One of the main problems is that we have a lot of commitments, but we don't have too many (aircraft) to sell," Gaona told Show News. "We're trying to manage demand."

The ACJ comes directly off the Hamburg, Germany, assembly line that builds 18 to 24 A319/A321 aircraft per month. Unlike the Boeing Business Jet, the ACJ is an airliner-certificated A319 modified with six auxiliary fuel tanks in the cargo hold to increase range, and has a higher cruise altitude of 41,000 feet. The aircraft can fly 12 passengers up to 4,700 nmi, or 40 passengers up to 4,200 nmi.

Airbus is moving fewer CJs compared with the Boeing Business Jet, but claims a more realistic completion schedule.

One problem not bothering the company is completing its aircraft, something that has plagued manufacturers like Boeing and Bombardier that, admittedly, are selling many more of corporate aircraft.

Gaona said Airbus has made a point of not selling airplanes it cannot complete in the time allotted. Completions of the first two ACJs were late by about one month, but the subsequent airplanes were completed on time, he said.

"Completions could be a problem is we weren't managing things the way we are doing," said Gaona, a French citizen who joined Airbus in 1989 as engine purchasing manager, later moving to head of industrial purchasing. "Once we lock in a customer we help him with the technical specifications of the cabin, and work with the outfitter to ensure the project will be on time. We've set up a partnership with the outfitters, and they are guaranteeing slots for our customers. If we don't do this, the lead time for the cabin completion would be prohibitively longer."

Approved outfitters for the ACJ are: Ozark Aircraft Systems of Bentonville, AK; Associated Air Center of Dallas, TX; Jet Aviation of Basel, Switzerland; and Germany's Lufthansa Technik.

Gaona took a jibe at Boeing, saying the company's completions are slow because it hasn't paid enough attention to the finishing aspect of the business. "It would not be realistic for us to start a program and say we'd put 10 airplanes in service and not be able to do that. Boeing has 20 to 25 aircraft on the ground; they have not managed the process from A to Z. We want to make sure that when a customer buys an Airbus he will get a completion center slot."

However, Gaona would obviously like to improve Corporate Jetliner sales. "In terms of demand (for ultra-long-range business jets), we believe the market is 15 to 20 aircraft per year. If we get 50% we are on target," he declared.

Airbus will have to sell a few more ACJs each year to make that target.

Barry Rosenberg