On the Record with BRYAN MOSS, PRESIDENT, GULFSTREAM
AEROSPACE
Though he's seeing positive signs that the business aviation market
is poised for a turnaround, Gulfstream president Bryan Moss said
he is not yet ready to make operational changes based on just
a few positive indicators.
"The encouraging signs we're seeing are a combination of
things; some are easily measured metrics like the number of demo
flights and the number of proposals," observed Moss. "But
what we're looking for is more evidence of the possibility of
a sustained recovery. I'd love to see more demos, more proposals,
more static displays, more incoming calls from customers. But
hope is not a strategy.
"The continuation of uncertainty in the political and military
arenas is an impediment to people deciding to buy airplanes. It
is just enough of an issue keeping some people from buying just
now."
At Monday's press conference Moss explained that sales of business
aircraft are still highly cyclical, dependent upon up and down
swings in the economy.
Operational changes put in place to deal with the economic recession
of the last three years or so will remain in place, says Moss.
That includes a reduced level of employment through outsourcing
of non-core functions such as information technology (handed over
to Computer Sciences Corp two years ago) and facility maintenance.
Also not changing is the line-up of Gulfstream aircraft, introduced
at last year's NBAA. "What we've gotten is confirmation that
that move from a strategic standpoint was the right one,"
said Moss. "There is a good deal of tradition associated
with Gulfstream. In some cases we've had to double back and re-explain
our reasons for the changes."
The two airplanes in the middle of the Gulfstream line-the G300
and G400-have been both certificated, including the enhanced vision
system. Both are large-cabin midsize aircraft, with the G300 being
medium-range and the G400 being longer range.
The only hiccup in the product line-up occurred with the G150,
which Gulfstream has delayed by 10 months because of market conditions,
says Moss. "It is a matter of timing whether you would go
ahead with program milestones, and we elected to defer."
The G150 is a new high-speed midsize jet with a standup cabin
that will have a slightly wider and rounder fuselage compared
to the G100. The new aircraft will be lengthened in the aft area,
and also have the oval windows of the G200 (the former Galaxy
business jet from IAI). Launch customer NetJets holds 50 firm
orders and 50 options on the G150.
And speaking of new airplanes, Moss said that Gulfstream has no
interest in developing a small, personal business jet such as
the Eclipse. But, "Our research and development activities
will continue. We believe very strongly that's the life blood
of our company. We owe it to our shareholders, and more especially
to our customers," Moss said Monday.
"This time a year ago, Gulfstream had four offerings; now
we have eight in the marketplace," said Moss. "We continue
to look at the entire spectrum, but there is no active interest
(in an Eclipse-class airplane). We don't have enough evidence that
it would be a good enough area for us to invest in. There is excitement
with those programs, and a lot of different visions, but we haven't
been able to convert that to a reasonable business model."
