Business jet maker Gulfstream said demand remains firm for its biggest and farthest flying business jets, even as economic weakness hits key markets around the world.
Industry experts have voiced concern about a potential scarcity of buyers for the wide variety of business aircraft available now and coming to market, which could mean an oversupply in the next few years, especially if economies weaken.
But Gulfstream said it expects 2016 sales to be about the same as 2015, and that demand for large, long-range jets is reviving as large corporations renew their fleets after the U.S. economic downturn.
U.S. and Asia sales are relatively strong, despite weakness in China, Scott Neal, senior vice president of global marketing at Gulfstream, said in an interview at the National Business Aviation Association conference.
“We’re seeing good activity in Western Europe and the Middle East,” even though Latin America and Russia have slowed.
“Despite what you’re reading about slowing conditions in different areas, there is still a good amount of pipeline activity,” he said, referring to deals in the works.
Gulfstream also does not plan to alter its G150 aircraft in response to competitor Embraer’s decision to boost the range of its competing Legacy 450 jet.
Embraer Executive Jets Chief Executive Marco Tulio Pellegrino said on Monday that the Legacy 450’s range would be stretched to 2,900 nautical miles from 2,575 to meet growing demand Embraer sees for longer range jets at the smaller end of the market.
Gulfstream’s G150 has a range of 3,000 nautical miles.
“We’re not going to respond or make changes based upon what others may do,” Neal said. “We have full confidence in the current product line.”
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