Galaxy Order Backlog Nears $1 Billion

For Brian Barents it's been a whirlwind two years. To build and certify the first business jet in a brand new market segment the super-mid-size category and to sell nearly 50, all within 24 months, is quite an achievement.

To build a new company to make this possible, and construct a new $12 million global headquarters, completion center and customer support and service facility at the same time, would appear on paper to be next to impossible.

But Barents is here at NBAA with all that behind him. Galaxy Aerospace officially opened its Alliance Airport headquarters in Fort Worth, Texas, just two weeks ago. Orders for the Galaxy now stand "in the late 40s" and sales are approaching $1 billion as customers sign outstanding contracts. "We are sold out until late 2001," Barents told Show News.
"It's been a very successful introduction for the aircraft. But building the organization is a part I've been extremely proud of," Barents says. His workdays often span 15-16 hours, "but when you enjoy the business as much as I do you don't count the hours," he says.

"It's very rewarding personally. And luckily my family shares my enthusiasm they are very supportive."

Galaxy is here with the first production aircraft, first seen publicly at the Paris Air Show this past June. For many, it will be the first time they have seen a Galaxy finished with an interior, Barents pointed out. The firm is also featuring an Astra SPX with brand new interior, and a Galaxy mockup in the Convention Center with a new interior configuration.

But it is the world headquarters in Alliance that cements Galaxy's success. Until now, Galaxy was the only major business jet manufacturer without a factory or completion center in the U.S. a place where prospective customers could judge first-hand the company's commitment to their $18 million-plus investment. And until now, customers had every right to question the long history of unpredictable support in this country for the Astra series of business jets.

"In some degree we're still not where we need to be as you can't turn around old attitudes and perceptions overnight," Barents acknowledges. He hopes the global headquarters will go a long way toward changing minds. "We had 15-20 customers and prospects visit in just one week recently, in addition to those there for servicing their aircraft directly at the factory," he reports.

There they could plug into CAD/CAM computers in the design center and create their own interiors, leaving at the end of the day with detailed drawings. They could view the completion center in action, the service departments, and the parts support operation. "There is a direct correlation between the number of influential decision makers you can convince to spend a day with you, and your ability to close a deal," Barents says. "So it is a real advantage to have our center up and running.

Galaxy is here with the first production aircraft.

Galaxy -- a U.S. partnership between Israel Aircraft Industries and investors including the Pritzker family of Chicago also markets and supports the Astra SPX transcontinental business aircraft. More than 30 Astra SPXes are in service; two (with another two options) have been ordered by the U.S. Air Force.

The Galaxy is the first of the super-mid-sized business jets, able to fly between continents with eight passengers, or on shorter missions with seating for up to 18. In size and price the $18.2 million Galaxy is positioned between the current midsize jets, which range from $10-12 million, and the large business jet category, with prices of $20-40 million.

Among the surprises in the marketplace have been the acceptance of the Galaxy by operators of large business jets, some of whom are trading in their Falcon 50s and Gulfstream IIIs for the new aircraft. "It's the same cabin size, but at a fraction of the cost," Barents explains. And it has a guaranteed operating price of $850 per hour, lower than many midsize jets, he points out.

Early sales of the Galaxy were mainly to customers outside the U.S., but the ratio has now swung back to two-thirds in North America.