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.
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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.