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Gulfstream poised to lift output rates through 2029

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Demand for business jets from Fortune 500 companies

growing

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Hopeful that US-China trade tensions will be resolved

By Allison Lampert

Nov 12 (Reuters) - U.S. trade tensions have slowed

opportunities for business jet deals in China, the president of

corporate planemaker Gulfstream Aerospace said, in a rare case

of demand softening in an otherwise upbeat global market for

private aircraft.

U.S.-based Gulfstream Aerospace, a division of General

Dynamics ( GD ), is set to grow output of its private jets

through 2029, underpinned by strong U.S. demand and new aircraft

models coming to market, President Mark Burns said.

The U.S. is the world's largest market for business jets.

Burns said he sees broader global strength, but U.S. trade

tensions with Beijing have "definitely slowed a number of

opportunities" in China, where the U.S. planemaker has about 150

aircraft flying.

"It's a good market for us," Burns said. "But you know,

obviously the trade tensions do create some slowdown in that

marketplace. So I'm hopeful that there's something that gets

done in the near future."

China and the United States have taken steps to ease

tensions in recent days following a meeting between U.S.

President Donald Trump and Chinese President Xi Jinping.

Business jet makers are seeing swelling order books after

demand for private flying grew by high-net-worth individuals

during and after the COVID-19 pandemic. In the U.S., affluent

consumers remain resilient, even as lower-income customers scale

back purchases.

Gulfstream is also seeing higher demand from Fortune 500

corporate customers, following quarters of strong results, Burns

said. As of November 7, more than 82% of 446 S&P companies beat

third-quarter earnings expectations, compared with a long-term

average of 67.2%, according to LSEG data.

Burns said Gulfstream could expect to grow its share of the

expanding private aviation market with the certification and

entry into service of the company's recently announced

super-mid-sized G300 jets, which fly up to 10 passengers and

would compete with Bombardier's Challenger 3500 jets.

Gulfstream has not disclosed a date for certification and entry

into service.

Burns said Gulfstream expected to grow plane production

through 2029, following long-term company plans, assuming demand

remains robust and its supply chain has capacity.

"Our plans are to continue to grow," he said. "The supply

chain right now is supporting that ability to grow."