First G800 delivered – but will it deliver?

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Gulfstream 800

Gulfstream has made its first G800 customer delivery. (Photocredit: Gulfstream).

“Fly further faster” is the invitation Gulfstream Aerospace makes to potential buyers of its new G800 business jet. Now, one unnamed buyer will have the opportunity to put those claims to the test after the first customer delivery of the new jet.

Gulfstream makes big claims. But then, many things about the jet are big. Claiming the longest range of any business aircraft, the G800 can travel 8,200nm (15,186kms) at its long-range cruise speed of Mach 0.85 and 7,000nm (12,964kms) at Mach 0.90, according to the manufacturer. Its maximum operating speed is Mach 0.935. Then, there is the price. Unsurprisingly, that’s big too – about $73.5m.

Still, Gulfstream is very confident in its appeal. “We have seen astounding demand for the G800 and the entire Gulfstream team is excited to begin making deliveries to our customers,” said Mark Burns, president, Gulfstream this week.

But will the new jet prove as popular as her older sisters – the G650 and G700? We took the temperature of the likely G800 market with industry insiders. There’s no doubting the older sisters’ popularity. “The G650 line was one of the fastest selling and most successful models in the ULR [ultra long range] segment,” Oliver Stone, MD at London-based Colibri Aircraft tells us. “So, it is nice to see Gulfstream continuing that line as I believe they hit the sweet point of range, cabin size and performance.”

 

The new jet’s long legs will be a clear differentiator in the market, he says. “The US still is the dominant demand driver in the marketplace and this aircraft’s ability to connect to just about anywhere on Earth from the USA will be a helpful feature for the aircraft.” The Middle East will also be a key market for the G800, both as it is a super-premium market and because that range increase will allow the plane to access much of the USA non-stop, he adds. 

 

But Stone wonders whether the extra range will add up to enough of an attraction for interested parties. “It remains to be seen if there are enough distinct buyer classes in this category to differentiate a buyer of a G700 from a G800,” he says.

 Range will prove a decisive factor, agrees Shawn Dinning, senior partner, Dallas Jet International. “The range is especially critical for US–Asia, Europe–Australia and Asia–South America routes,” Dinning tells us. “Routes like New York–Hong Kong and Miami–Cape Town are now possibilities. There is a small but serious group where this connectivity could be very meaningful. For other buyers, it won’t be about the range, but rather about the latest technology offered by Gulfstream.” 

Steve Varsano, founder of The Jet Business thinks the G800 is in keeping with the “incredible success” of the G650. He believes its ultra long range, speed and comfort – not least the industry’s lowest cabin altitude of 2,840ft (866m) when flying at 41,000ft (12,497m) will tempt existing buyers to upgrade and new ones to phone their financiers.

“The G800 is going to keep people – because that’s the goal isn’t it? Ensuring repeat business,” Varsano tells us. He believes pilots will prove powerful ambassadors for the new aircraft reflecting their admiration of the G800’s Symmetry Flight Deck technology inherited from the G700. “The pilot’s input to the principals, the CEO or chairman of corporations is very influential,” he says. “I think that will keep more loyalty with those pilots, and I think that’s going to accomplish Gulfstream’s goal.”

But what about that $73.5m price tag? “For those of us who have been in the business for a while, price points north of $60m still cause our hearts to pause,” acknowledges Dinning. “Having said that, I see the price point of the G800 not being an obstacle at all for the folks who have interest in its mission and the airborne experience it provides.” Plus, Gulfstream did significant market research before establishing that pricing, he understands.  

Stone points out that the Global 7500 and G700 have established the standard for the upper echelon aircraft price point. “So, this will be expected by users,” he says. “I don’t see this being an impediment to buyers who are shopping for a new ultra-long-range plane from the OEMs.” Varsano also notes Gulfstream has “never been bashful about pricing”.

Dinning thinks the G800’s performance adds up to a compelling proposition for potential buyers. “Gulfstream has a head start on what I call the ultra-ultra-long-range segment and that will only enhance Gulfstream’s order book,” he says.

“Plus, with G650 production ceasing, the US has a strong G650 community which will be ripe for upgrading into a greater mission capability and better flying experience. This aircraft will appeal to all continents and open routes previously inaccessible across the globe.”  

Stone, however, has just one question. With deliveries of the new G800 under way and the G700 still in production, which one is the flagship? Many buyers always want the newest and top of the line model. “Buyers like that are what keeps our industry functioning,” he says. “I am curious which model the market will anoint as the top-of-the-line Gulfstream product.”

Gulfstream’s first G800 customer and many more like him or her (Gulfstream hopes) will decide the answer.

Meanwhile, don’t miss our article exploring how the G800 will shape the G650 market in the latest edition of Corporate Jet Investor Quarterly.

 

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