But Company Will Produce Fewer Planes In '09 Thanks To Slumping Economy

During the company's annual financial analysts meeting Thursday, Dassault Aviation Chairman and CEO Charles Edelstenne announced sales results for 2008. Dassault received a net total of 115 firm orders worldwide for Falcon business jets in 2008... a marked decline from the record 212 orders received in 2007.

Dassault Aviation's 2008 consolidated sales were 3.75 billion Euros ($5.13 billion US) with Falcon business jets accounting for 62% of that total. Dassault delivered 72 Falcon business jets for entry into service in 2008. The delivery rate of completed Falcons is expected to increase to 90 aircraft in 2009, though production of green aircraft will be reduced as market conditions demand.

In yet another disturbing economic portent, Dassault received more order cancellations than new orders for the past two quarters, reports Bloomberg.

"There is no doubt that we are in the midst of a very challenging economic environment. However, Dassault has always taken a long term view," said Edelstenne. "We will continue our ongoing investments in customer support as well as technology and innovation. A major expansion for our company owned Service Center network is also on schedule. The Falcon 2000LX will be certified soon. EASy Phase II development is accelerating and development of the SMS continues."

"We began to see a slowing in demand in late 2007 but the level of activity remained strong through the first three quarters of 2008," said John Rosanvallon, President and CEO of Dassault Falcon. "The fourth quarter of 2008 was challenging with rising preowned inventories and a significant contraction of available credit."

In happier news, Dassault officials noted the company grew its factory support capabilities significantly in 2008, announcing two new service centers in Reno, NV and Sorocaba, Brazil. Dassault also wrapped up expansion projects at its current facilities in Le Bourget, France and Little Rock, AR, and opened a joint parts distribution facility with UPS in San Jose, CA.

Rosanvallon pointed to those efforts as part of the company's commitment to the value of business aviation... something that defies economic trends, and public perception.

"While we all must deal with the crisis we are currently facing, it is important to remember that there are enduring facts regarding the advantages of business aviation, Rosanvallon continued. "These facts are critical to aircraft operators who rely on their business jet for their efficient transportation and as a key driver to expansion and growth of their organization," said Rosanvallon.

"Growth is also vital to the economies that rely on business aviation for high paying jobs in manufacturing, operations and support. When they're combined, our industry is critical to the successful conduct of international commerce that will lead us out of today's difficult environment."

FMI: www.dassault-aviation.com