United Frax Orders Up To 30 Gulfstreams

United Air Lines' new fractional ownership business has ordered up to 30 Gulfstream business jets at the Paris Air Show, including the first substantial commitment for the new GV-SP.

Included in the $1.25 billion deal are firm orders for seven Gulfstream IV-SPs and five Gulfstream Vs, and options for nine GIV-SPs and 14 GV-SPs. United also has entered into a long-term maintenance agreement with Gulfstream for support of the aircraft.

"The choice of Gulfstream represents United Bizjet's confidence in our company's ability to support the variety of applications it envisions for business aircraft," said Bill Boisture, Gulfstream's president and COO.

News of the deal comes a day after the United Bizjet Holdings signed a letter of intent with Dassault Aerospace for up to 100 Dassault Falcon Jets valued at $2.5 billion.

United Bizjet expects to take delivery of its first Gulfstream, a GIV-SP, in May 2002. If all options are exercised, deliveries will extend through 2006. Falcon deliveries will occur concurrently; United plans to receive its first Falcon 2000 in late 2002.

UAL is expected to order additional business aircraft to round out its fractional fleet, but acquisitions of larger aircraft in the Boeing Business Jet class are unlikely, at least for now.

"We don't expect to acquire any aircraft larger than the GV-SP for our fractional business," said Stuart Oran, president of United Bizjet. "We do intend to add other general aviation products as we grow, including a corporate shuttle. Then we would add aircraft in the BBJ class."

Boisture said GV-SP development is gaining momentum at the company's Savannah, Georgia plant. A modified GV (S/N 632) is nearing completion as the GV-SP prototype. Rollout for the aircraft is planned for August 8.

The new aircraft is expected to fly in late 2001, with U.S. FAA and JAA certification following a year later. First customer deliveries-perhaps to United Bizjet-are planned for mid-2003. Ultimately, the GV-SP will replace the GV on the production line.

Gulfstream also is planning a follow-on to the GIV-SP, now called the "GIV Next," and research into a supersonic business jet continues. Boisture said Gulfstream has benefited from some U.S. Government (DARPA) funding toward this goal.

"We can realistically see a Quiet Supersonic technology demonstrator within five to ten years," he said. "We also believe it will be built by an international partnership, and will cost around $70-80 million per aircraft. We're right at the beginning of the process."

By Paul Richfield