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

Engine Buyer is Now Exec Airbus Driver

Fourth in a four-company race to sell long-range business jets, Airbus Industrie has begun an all-out marketing effort for its A319 Corporate Jetliner, and has dedicated a 10-person staff to the job. Leading the ACJ organization is Richard Gaona, who was appointed in May to increase sales past their present total of 14. He's based at Airbus headquarters in Toulouse, France.

"This organization existed, but was not formalized," Gaona says. "Our intention is to get stronger and stronger in the corporate business. We are starting slowly, but we want to be efficient."

Gaona, 41, is a French citizen who joined Airbus in 1989 as engine purchasing manager. He later headed industrial purchasing, and he has identified for Show News a couple of reasons why the ACJ has not sold as fast as the competing Boeing Business Jet, even though it has a bit more range and a slightly larger cabin.
"First, we started later than Boeing did," he says. "Second, we've tried to have the best aircraft in the market, and wanted that aircraft to be excellent at delivery. (Corporate customers) are prepared to wait one, two or three more months but are not looking for an aircraft that needs retrofit (after it's delivered).
"When (for example) we went to the auxiliary fuel tank modification we had the choice of going to a subcontractor or doing it ourselves. It has to be a very reliable modification; we say who better than us to do that work?

"What is important," Gaona says, "is not to start first and maybe encounter problems but to start with the best aircraft."

The ACJ's auxiliary fuel tanks are made in Hamburg, Germany, as is the A319 commercial narrowbodyand the ACJ itself.

The Hamburg assembly line is currently building 18-20 A319/A321 aircraft per month, with plans to increase type production to 24 per month. Unlike Boeing, the Airbus organization has not committed to building any set number of ACJs.

"We are not committed to, say, two per month," says Gaona. "If the market wants three aircraft per month, we will do it."



Airbus has made few, if any technical or performance changes to its ACJ in the past year.

Gaona is taking a wait-and-see attitude concerning the exact number of long-range widebody business jets the market can bear. Airbus has identified 200 customers it calls potential ACJ purchasers. Gaona doesn't, however, believe the market can support 24 per year, which is what Boeing predicts.
"I think 24 aircraft per year is a lot; the competition says 24 because they have an obligation to produce two per month," he says.

Unlike Boeing, which is introduces a BBJ II here in Atlanta, Airbus has no intention to add to its corporate jet line by converting another commercial aircraft to corporate configuration. "We think the ACJ is perfect," says Gaona. "When you come out with a new one, people might not be so happy with the older model."
Gaona doesn't believe there is demand among corporate operators for an aircraft that can fly even further distances. "We're looking for comfort rather than long range," he says.
Airbus has made few, if any, technical or performance changes to its ACJ in the past year. The reason, according to Gaona, is to retain commonality with the commercial aircraft produced by Airbus.
"We don't need winglets to meet performance," Gaona says in reference to Boeing's decision to fit the Boeing Business Jet with winglets in order to meet range guarantees. "The aircraft will have provision for FANS (future air navigation system), be delivered with options like TCAS, and the 26,500-pounds-thrust engines can be de-rated to 24,000 pounds.

"Why would we change an aircraft that is the best today? Let's keep commonality and not reinvent the wheel."
Gaona also maintains that Airbus understands the corporate customer better than Boeing because of the nature of Airbus' existing customers.

"Fifty percent of all A320 aircraft sold are sold into fleets of four aircraft or less," he says. "So we're used to dealing with small customers.

The Airbus business jet VP also thinks corporate customers would rather deal with the larger parent company rather than a separate subsidiary like Boeing Business Jets. "Airbus is a company; people don't have to deal with a separate entity maybe not supported by the parent company," he says.


By Barry Rosenberg

NBAA 1999, Atlanta, Ga.


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