On the Record with RICHARD GAONA, VICE-PRESIDENT, AIRBUS
CORPORATE FLEET & VIP AIRCRAFT
In today's economy, it is tough enough to sell $35 million business
jets. The job is even tougher when your competition has "white
tails" sitting around, causing significant pressure on price.
"I'm competing everywhere with two or three white tails,"
said Richard Gaona, vp Airbus Corporate Fleet & VIP Aircraft,
referring to a half-dozen unsold Boeing BBJs that have been on
the market for the past year. (Boeing reports that all six white
tails will have been sold by year's end.)
"In general, since 9/11, everybody has been facing challenges--Gulfstream,
Dassault and BBJ," said Gaona. "Competition has become
more difficult, but we are still very positive about the market;
it is coming up."
Gaona and other senior executives with long-range business
jets to sell all cite similar signs of a possible turnaround in
their markets: a greater number of potential customers asking
for proposals, more demo flights, and additional static display
opportunities.
Airbus will produce only six to eight A319CJs, also known as
the Airbus Corporate Jetliner, in 2004, reports Gaona. He believes
those figures represent about 50% of the total worldwide market
for business jets in this class. Second-quarter 2004 is the first
available position for a "green" airplane.
Over the years, Airbus has offered only one model in the corporate
jet market--not including one-off VIP sales of airplanes for sheiks
and such--which doesn't concern Gaona, as he has watched Boeing
introduce a BBJ2, based on the 737-800, and the "Business
Express," a 717 now being sold as a corporate shuttle.
"If somebody tells me they want to buy an A320 I have
no problem selling it to him," he said. "However, for
VIP application, the ACJ is the right size and price. We should
not be following what the competition is doing. If somebody wants
a smaller plane or a larger one we have [in the Airbus fleet]
what is right for the market."
There will be one ACJ on static in Orlando, and, as for last
year's show, it will fly nonstop from Toulouse to Orlando.
Seventeen ACJs are in service, with Gaona making the point
that none have been resold and all are with their original owners.
The latest delivery was less than two weeks ago when Minneapolis-based
Blue Moon accepted one configured for 58 passengers. Blue Moon
flies sports teams around the United States, and its president,
Richard Page--who founded the MGM Grand airline--will be Airbus's
guest at NBAA.
Gaona says another ACJ will be delivered the first week of
October, and that customer will be announced in Orlando.
And just prior to NBAA late September, an ACJ was sold to the
Royal Thai Air Force (RTAF) for VIP transport. It is the first
ACJ sold into the Asia-Pacific region. Thailand joins the governments
of France, Italy, Qatar, Venezuela and the United Arab Emirates
as ACJ operators.
Delivery of the RTAF's ACJ, which will be powered by CFM International
CFM56-5B7/P engines, is planned for July 2004. It will feature four
additional center tanks, giving it the range to fly one-stop to
both Europe and North America while transporting approximately 30
passengers.
