General Dynamics has introduced two new Gulfstream business jets, as it seeks to capitalize on a revival in business jet demand following the pandemic's impact on orders.
The Gulfstream G800 is the firm's longest-range aircraft, while the Gulfstream G400 is the first new entrant to the large-cabin class in over a decade, according to the company, which unveiled the jets on Monday.
"The G400 and G800 announced last night flesh out Gulfstream's upper-end product line ... Risks and R&D look moderate as both are derivatives" Cai von Rumohr, a Cowen analyst, said on Tuesday.
He believes the G400 will outperform Bombardier's Challenger 650, and that because it is priced at a point where Gulfstream does not have a product, demand for existing Gulfstream models would not be harmed.
In the United States, the pandemic has spurred demand for private jet travel, with a shortage of pre-owned business jets and a desire from wealthy passengers to fly with fewer people driving up prices and filling order books for new corporate aircraft.
Gulfstream, which provides business jet services, is still experiencing pandemic-related delays and shortages. The business supplied only 21 jets in the second quarter of this year, compared to 32 a year ago.
Customer deliveries of the G800 are expected to begin in 2023, while deliveries of the G400 are expected to begin in 2025, according to General Dynamics.
Bombardier, a Canadian business jet manufacturer, said last week that it had received a $534 million contract for 20 modified Challenger 350 aircraft. In the second half of 2022, the jet is projected to enter service.