March 13 (Bloomberg) – General Dynamics Corp., the second- largest maker of business aircraft through its Gulfstream unit, will build the world’s fastest civil jet as it seeks a greater share of sales in Europe, Asia and Latin America.
The new G650 jet will have a maximum speed of 0.925 Mach and can fly at an altitude of 51,000 feet, Joseph Lombardo, president of Gulfstream, said today at a press conference in Savannah, Georgia. At that speed, roughly 694 miles an hour, it can fly from Los Angeles to New York in less than four hours, or New York-to-London in less than six hours.
Gulfstream sales rose 17 percent to $4.8 billion last year, and for the first time overseas orders surpassed U.S. bookings. Gulfstream, the market leader in the large-cabin, long-range jet segment, is looking to the new jet – the first model announced since 2004 – to maintain that dominance as a weaker dollar boosts sales to Russia, China, India and Brazil.
The guy in first place stays in first because he doesn't look back,'' Howard Rubel, a New York-based analyst with Jefferies & Co., said in an interview before the official announcement. They are pushing it to the next level, being very careful not to create a new-product void. You don’t launch these too often. It should stimulate demand, and keep backlog strong.‘’
Gulfstream aims to make the first G650 test flight in the second half of 2009, receive certification from the Federal Aviation Administration in 2011, and begin deliveries in 2012.
Fastest Jet
The G650 will be powered with the new BR725 engine made by London-based Rolls-Royce Group. Other major subcontractors include Honeywell International Inc. for the flight display, and Rockwell Collins Inc. for a heads-up display.
The new jet would edge out Textron Inc.‘s Cessna Citation X for the title of the world’s fastest civil jet, while offering more than twice the range.
Global deliveries of business jets from all manufacturers rose 28 percent to 1,138 aircraft last year, according to the General Aviation Manufacturers Association. Gulfstream’s business aircraft sales volume trailed only Bombardier Inc.‘s $5.2 billion. Montreal-based Bombardier makes the Learjet and Challenger aircraft.
General Dynamics, based in Falls Church Virginia, fell 64 cents to $83.98 at 9:33 a.m. in New York Stock Exchange composite trading. The shares had gained 10 percent in the past 12 months before today.
More Affordable
International orders accounted for 53 percent of Gulfstream’s total last year, Nicholas Chabraja, chief executive officer of General Dynamics, said at a March 4 investor conference. The dollar this month set an all-time low against the euro, and reached an eight-year low against the yen, making exports of Gulfstream jets priced in dollars more affordable to overseas customers.
Cessna’s Citation X has a top speed of 0.92 Mach and a range of more than 3,000 nautical miles. Mach 1 is the speed of sound. Since the 2004 retirement of the Concorde, which was operated for 27 years by Air France and British Airways Plc, there have been no civil supersonic aircraft.
Only military aircraft now fly faster than the speed of sound. Lockheed Martin Corp.‘s F-22 Raptor is a supersonic jet used by the U.S. Air Force.
The new Gulfstream will be able to travel 7,000 nautical miles at 0.85 Mach, or 5,000 nautical miles at 0.9 Mach.
Gulfstream now sells six jets, including four large-cabin and two medium-cabin aircraft, with list prices for planes delivered this year ranging from $14.5 million for the G150 to $47.6 million for the G550, spokesman Robert Baugniet said.
`Robust’ Demand
The G150 carries four passengers as far as 2,950 nautical miles while the top-of-the-line G550 can carry eight passengers 6,750 nautical miles. The last aircraft announced in February 2004 was the G350, which can carry eight passengers 3,800 nautical miles.
Gulfstream’s total backlog of orders jumped 59 percent to a record $12.3 billion last year. That means customers looking to buy a large-cabin jet now need to wait three to four years for delivery, Chabraja said March 4.
Demand is still very robust at the ultra-high end,'' Peter Arment, an analyst with Greenwich, Connecticut-based American Technology Research, said in an interview before the official announcement. Gulfstream has the No. 1 market position in that segment and they want to maintain it for the future. Developing new offerings can generate interest and graduate other Gulfstream owners into a newer model.’’
New Plant
About 1,600 Gulfstream jets are now flown by customers in 34 countries.
Lombardo, 60, made the announcement at a new jet- manufacturing plant in Savannah. The plant is part of a $400 million expansion begun in March 2006 which also was designed to provide more space for research and development, and aircraft service.
Lombardo took the helm at Gulfstream on April 9, 2007, after serving as chief operating officer since 2001. He replaced Bryan Moss, who had led the unit from 2003.
Gulfstream was founded in 1958, and acquired by General Dynamics in 1999 for $4.8 billion.
In addition to making Gulfstream jets, General Dynamics is also the fourth largest U.S. defense company. It builds Virginia-class nuclear submarines, Abrams battle tanks and Stryker troop transports.
looks like they are shoving this right into Cessna. This is a great response to Cessna’s Columbus and should put them on their heals. Great job by the Gulfstream management.
Here’s another article: aero-news.net/index.cfm?Cont … f5e54c652&
3 new columbus’s could fit in the G650!!!
The new G650 isn’t in the same market segment as the Columbus. Be looking for the announcement of the new G250 probably later this year, which will be market competition for Cessna. From what I’m being told the G250 will handily out perform the Columbus.
Gulfstream had reached a point where they had to announce the G650 due to all of the scuttle around SAV, and the industry. Gulfstream is building a new production facility to handle the G650 but has been downplaying it calling it “additional production capacity”. Also one (customer/guest) can’t be taken through the facility at SAV without having to sign non-disclosure statements, and literally be asked to look the other way when entering certain sections of the production, research and development areas. Although I was allowed into their avionics/cabin electronics testing rig room during final development their newly certified Synthetic Vision System. It was basically a static rig that had a cockpit section with full avionics and an elaborate system of structure that allowed for the fully functional installation of every electronic/electrical component that would be configured right down to every detail in an actual aircraft. Extremely impressive… If I say anything else, they’ll have to kill me… 
This is potentially off topic, but I’ll ask anyway…
On another forum someone was stating that even though the G550/G650 will burn considerably less fuel than a BBJ, the overall operating costs were largely similar, despite the added fuel burn on the BBJ. What gives? If that’s the case, I’m lead to believe there would be more BBJ’s in the air, given the extra space and ‘prestige’ factor.
That is in fact not the case. The hourly direct operating cost of a BBJ is almost 30% more than a G550, with basically all of that difference being fuel expense.
Airline parts are considerably cheaper than business jets too. That helps bring the BBJ closer to the G5/550/650 costs.
John
Couple other things to think about when going through the BBJ vs. G550/G650 and GLEX debate:
- Ramp presence - still a lot more subdued than a BBJ (relatviely speaking)
- Performance - Climb rates, cruise speeds, ceiling, etc are all markedly better than BBJ
- Practicality - Unless you are hauling around a large entourage, doesnt make sense
add higher landing fees, and of course in general, the BBJ will be most expensive to operate. I really think these two planes are totally different markets.
There is also the issue of public perception when operating an airliner as a corporate jet. The BBJ has a BIG presence and draws more looks than an “average” Gulfstream. Footprint also is a factor. The BBJ has at least 24 feet more wing than a G550 and weighs almost as much empty as the G550 weighs fully loaded. You ain’t gettin that BBJ into KMVY!
There are several airports KTEB (teteboro in NY), KASE ( aspen) and many more in Europe where you cannot land a BBJ, several restrictions apply for aircraft above 100,000 lbs. Also restrictions to fly to and from the USA. Makes no sense to own a BBJ.
The proof is that a BBJ costs less to buy than a G550 and G650, and still many prefer the Gulfstreams
If your willing to pay for it
Has the first G650 been built yet? I see that the tail number in the pics is already registered.
the first delivery is 2012, there is no G650 ready to fly yet!
Seems odd that someone in North Carolina owns N650GA…same number Gulfstream has on all their promotional pictures.
Someone has/had the number reserved. It was up for renewal on Monday. They might have just made a few bucks.
There are a fair number of people for whom these are not issues. I’ve seen Paul Allen getting off his private 757 with just his family. The Googel founders admit that their private 767 is their toy. Middle east oil sheiks fly on their private Airbus and Boeing aircraft. Some large companies use their larger planes for both freight and execs. I’ve seen a relatively small team of execs deplaning a leased BBJ and they seemed to be enjoying the biggest fish in the pond attention they were getting.
There are a fair number of people for whom these are not issues. I’ve seen Paul Allen getting off his private 757 with just his family. The Googel founders admit that their private 767 is their toy. Middle east oil sheiks fly on their private Airbus and Boeing aircraft. Some large companies use their larger planes for both freight and execs. I’ve seen a relatively small team of execs deplaning a leased BBJ and they seemed to be enjoying the biggest fish in the pond attention they were getting.
I am sorry but you are totally wrong, you mentioned well know celebs and a few executives that don’t know any better. The great majority of very wealthy users of the big jets want to be transported in comfort, land in the closest strip avaiable and attract the LEAST amount of attention, not MORE!!. Only a few stupid millionaires want to take pictures in a lousy Boeing. G650/G550 is the first choice of most of the Millionaires around the world, not because they are cheaper (in fact they are MORE expensive), but because they are far superior aircraft (cabin altitude, range, speed, cabin noise).
Are you related to damiross? You speak with a great deal of conviction, but little demonstrated knowledge. But I’ll give you a chance to show your stuff. As Allen might say: show me your sources to back up your assertion. For example, point me to something that shows “the great majority of very wealthy users of the big jets want to be transported in comfort, land in the closest strip avaiable and attract the LEAST amount of attention, not MORE!!” For example, when I flew into Santa Barbara for Operah’s big party for Obama last year, I saw an amazing number of very large airplanes with 2 people deplaning and no-one was worrying about it looking bad. They had the little jets parked way away from the FBO because the big ones were taking up all the space. If what you said were true, the jet market would be about CJs and Mustangs, and G5s would have a hard time selling.
If what you said were true, the jet market would be about CJs and Mustangs, and G5s would have a hard time selling.
You are so stupid! Obviously Mustangs and G5s dont have the same range. G650/G550 and BBj’s have. Actualy BBJ’s have LESS range. Given the same range wealthy people prefer LESS attention, obviously you only know those that show themselves in PEOPLE magazine, i.e. very few of the global large jet users.