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UPDATE 1-Gulfstream says new jets on track; sees flat sales in 2016
November 16, 2015 / 10:30 PM / 2 years ago

UPDATE 1-Gulfstream says new jets on track; sees flat sales in 2016

(Adds detail, executive quote)

By Alwyn Scott

LAS VEGAS, Nov 16 (Reuters) - Gulfstream Aerospace Corp said on Monday that development of its G500 and G600 business jets was on schedule, but that headwinds in emerging markets would cause flat sales growth in 2016 compared with 2015.

Mark Burns, president of Gulfstream, a unit of General Dynamics, said the first G500 test plane was performing as expected, and the program is on schedule for certification in 2017 and delivery to customers in 2018. The G600 test planes are being built and are on schedule for delivery in 2019.

He noted strong sales in the second and third quarters of 2015, but said sales in 2016 would be “somewhat flattish” due to a variety of headwinds, including economic weakness in China, Russia and Brazil; longer sales campaigns in the U.S. market; and competition with used aircraft.

“Many of the deals we’re competing today are against used aircraft that we built,” he said. (Reporting by Alwyn Scott; Editing by Chizu Nomiyama and Cynthia Osterman)

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