Billion-Dollar Deal Signed Here Will Add Gulfstream Vs to NetJets

Gulfstream Aerospace and Executive Jet signed a $1.3 billion deal Monday that establishes a Gulfstream V shares program, adds aircraft to the existing GIV shares program, and makes the aircraft manufacturer responsible for maintenance on Executive Jet's NetJets fleet of Falcon, Hawker and Gulfstream jets for the next five years.

The deal includes the purchase of 10 G-Vs (with options for 12 more) and 14 G-IVSPs, bringing to 56 the number of Gulfstreams ordered by Executive Jet since it established a relationship with the manufacturer in 1995. The aircraft ordered here will be delivered through 2004.

The five-year support pact calls for airframe maintenance and refurbishment of Executive Jet's fleet of more than 150 Falcons, Hawkers and Gulfstreams. The accord will augment Executive Jet's existing service arrangements with aircraft manufacturers. Gulfstream will also provide engine and APU support for Executive Jet's Falcons and Hawkers. Much of the work will be done at Gulfstream's service center in Westfield, MA.

Gulfstream also disclosed its financial results for the third quarter. The company posted record earnings per diluted share of $0.86 for the period ending September 30 -- a 91% increase over the third quarter of 1997. Revenues for the third quarter were a record, too -- $626.2 million, up 35 percent from the comparable period a year ago.

Gulfstream received 16 new orders and delivered 16 aircraft during the recently completed third quarter. Year-to-date orders stand at 58.