Will Deliver 21 Fewer Planes This Year, Built By 1,200 Fewer Workers

We can probably thank Congress for this. General Dynamics announced this week its Gulfstream Aerospace subsidiary will cut production of large-cabin aircraft and green-plane deliveries this year, due to the "deterioration" of its order backlog.

"Gulfstream Aerospace has found it necessary to cut large-cabin aircraft production and green-aircraft deliveries from a projected rate of 94 to 73 in 2009," reads a statement from the company. "Gulfstream also will reduce production of its mid-size aircraft from a projected rate of 30 to 24 aircraft this year."

The planemaker also announced it would join other aircraft manufacturers in cutting its workforce, to the tune of 1,200 employees. Approximately 550 of those positions are contract personnel, GD added.

The company was tactful in not assigning blame for the erosion in Gulfstream's fortunes... but it's not very difficult to connect the dots. Attacking the use of corporate jets by executives at large companies -- many of them receiving money from the federal bailout program -- has become quite fashionable on Capitol Hill in recent months, as ANN has reported.

"Despite the current challenges, we continue to believe that Gulfstream's backlog provides a solid foundation for the business in this tough market environment," said General Dynamics chairman and CEO Nicholas D. Chabraja. "We regret the impact of these actions on our employees and their families, and are doing our best to minimize the number of workers effected."

Chabraja added that due to the problems at Gulfstream, General Dynamics would also lower its earning guidance for 2009... from the previously stated range of $6.70-$6.75 to a range of $6.00-$6.10.

FMI: www.generaldynamics.com, www.gulfstream.com