Paris Air Show
Aerospace |
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All's Well
At Gulfstream, Claims Top Exec
Tom Forstmann, Chief Executive Officer at Gulfstream, dismisses claims that his company has lost a step. Even as Global Express orders continue to mount for Gulfstream's main competitor Bombardier, the colorful spokesman refuses to acknowledge any downside for GIV to ever increasing competition in the business jet market.
While Gulfstream continues to lag behind Bombardier in market share, Forstmann still contends that, with such a large backlog of orders, the future of the company is as secure as ever. At a press conference this week, he stated, "We have a very big backlog with funded deposits and nothing will change that no matter what anyone does." Apparently, Forstmann wasn't aware of Bombardier announcements that take-away orders had already taken place, with Gulfstream customers forfeiting deposits and signing contracts for Global Express jets instead. Backlog orders currently total $3.3 billion for Gulfstream. Forstmann did say the company had signed 21 customers in the last quarter, but with fractional ownership options, that doesn't necessarily equate to the sale of 21 aircraft. Bombardier claimed sixty firm orders for the Global Express but did not say how many of those were signed in recent months. Both Gulfstream and Bombardier acknowledged that some sales will now undoubtably be lost to Boeing and Airbus, both of which announced they would now be competing in the business jet market. Bombardier officials see the two majors as a definite threat, but hope the higher speed and lower cost of their aircraft will offset the benefits of the roomier Boeing and Airbus models. Gulfstream, however, doesn't seem quite so rattled. Forstmann insists, "Their [Boeing and Airbus] airplanes serve a customer who is willing to give up some range and airfields for some size. Boeing is off to a good start but the market they are going after is a small market."
Gulfstream did point to their recent contract with the U.S. Air Force as evidence of the company's continued success. The Air Force ordered two GVs for it's VCX program with options for another four. Forstmann commented on the contract, stating, "This is the first government order for an aircraft in this class and we know other countries watch what the U.S. government does. This bodes well for us." Speaking in generalities, Forstmann concluded his statements on the financial
health of his organization claiming, "We are very optimistic about
this year and even more optimistic about 1998 and 1999. There are many more
years to come." |
