Dassault Aviation is lamenting a continuing weak business aviation market and says that 2017 will likely be another difficult year, but the company continues to improve its products and is turning its attention to what might follow the Falcon 8X, the French aircraft manufacturer said on Monday at NBAA 2016. Meanwhile, the delayed 5X received a brief mention as the company adjusts schedules following development issues with the Snecma Silvercrest engine—first flight is now expected by the end of next year, with entry into service in 2020, the company said.
This week at NBAA 2016, Dassault is concentrating sales efforts on an upgraded 900LX, as well as giving visitors an update on the 6,450-nm-range 8X. The company’s newly announced modernized Falcon 900LX, which it hopes will boost the order book, adds a “sleek, stylish” and quieter cabin. Other new features include a vacuum toilet; new connectivity services (FalconCabin HD+); LED mood lighting; FalconEye combined vision system; and an electronic flight bag (Falcon Sphere II). The upgraded 900LX can be seen at the static display.
Olivier Villa, who is now executive v-p for civil aircraft, reflected on how quickly the Falcon 8X came together after launch at EBACE 2014. The trijet made its first flight in February last year and was awarded simultaneous FAA and EASA certification in June this year, as well as approval from the UAE and Brazil announced on Monday. Indian and Chinese approvals will follow “soon.”
The first 8X was delivered to Greek operator Amjet Executive on October 5 at Dassault’s facility in Bordeaux-Mérignac, where Villa said assembly of aircraft S/N 32 has now started. The next development milestone is expected to be certification of the FalconEye HUD system (already certified on the Falcon 2000) on the 8X, followed by certification for dual-HUD applications.
Eric Trappier, Dassault Aviation chairman and CEO, said that market conditions remain tough, but success in the company's military business (Rafale fighter sales) is offsetting a slow business aviation marketplace. He alluded to studies of the next Falcon, but declined to provide details. “We are now studying in depth with our marketing and sales departments, looking at what the market should be tomorrow.”
Trappier said he has launched a company transformation plan, called “Piloting Our Future,” with a renewed focus on areas such as digital development and customer support. He said there are advantages to being a relatively small company, “as long as we remain swift and focused.”
John Rosanvallon, president and CEO of U.S. subsidiary Dassault Falcon (Booth 2647), said that there are “a few encouraging signs but still too many factors creating headwinds.” He noted that “negative things include the strong dollar,” which is making aircraft priced in U.S. dollars relatively expensive for those outside the U.S. “We have some other difficulties in the BRIC countries,” he added, alluding to the commodities crisis that has hit these economies hard. Even in the U.S., he said, there is a downturn in corporate profits.
“We are facing depressed prices and weak demand. Some OEMs have reduced their prices by 15 percent over those 15 years ago, some as much as 25 percent, which shows the imbalance between supply and demand in our market,” Rosanvallon commented. “And looking at values of five-year-old aircraft, such aircraft used to be valued at 80 percent of the original list price, but now—according to Vref—they are down to 55 percent after five years. That’s a lot of loss of value.” He also pointed to UBS research that suggests “stagnation in the business aircraft market over the past few months.”
