Worldwide Demand Driving Gulfstream Growth, Lombardo Says

SAVANNAH, Ga., May 16, 2011 — Gulfstream Aerospace Corp. President Joe Lombardo said in a media conference at the European Business Aviation Convention and Exhibition today that Gulfstream continues to see strong and growing demand from countries outside North America, even as its home market in the U.S. recovers.

“Although about 70 percent of sales in the last quarter were international, with about half of those coming from Asia, corporate customers in the U.S. are returning to the market as well,” he said. “Additionally, we are seeing positive market indicators, including Gulfstream fleet hours, which have just about returned to 2008, pre-recession levels. We remain optimistic and are committed to our investment plans, which will position us well for the future.”

Lombardo cited a $500 million expansion plan launched in November 2010 to enhance its Savannah, Ga., campus with additional research, production and product support facilities. The expansion will add 1,000 jobs over seven years.

Lombardo also provided updates on the company’s two aircraft development programs, saying that both the G250 and G650 remain on track for certification this year. He noted that flying on the G650 program has been temporarily suspended, but that all other flight-test activity, engineering and production continue as normal. He reaffirmed the company’s plan to deliver 12 green G650s this year, bringing the total for all models to approximately 105, up from 99 the previous year, with the mix skewed more toward the large-cabin segment.

“The geographic distribution of our aircraft continues to shift,” he said, “with more and more aircraft located farther from our corporate facilities in Savannah, Georgia. For example, we now have about 60 aircraft in Hong Kong and mainland China, with most having entered the market in just the past few years. We are growing our worldwide support organization to respond to this trend. We already have a third of our company – 3,300 employees – devoted to customer service, and have $1.2 billion in spares located strategically around the world. We will be placing more resources around the world as time goes on.

“Our number one job is to make sure our customers, wherever they are, have the best support in the world.

“We expect to be at EBACE next year with two new certified products, the G250 and G650,” he said. “They will keep Gulfstream in the forefront of the market. And even as these two new aircraft enter service, we will continue to invest in the future of the company and the future of business aviation.”