Gulfstream swoops into this year's National Business Aviation Assn. exhibition in the strongest financial shape it's ever been with a "robust" order book totaling more than $3 billion.

The company recently recorded the sale of its 100th Gulfstream V ultra-long-range jet. The next available positions for the Gulfstream IV-SP and Gulfstream V are in mid 2001 and late that same year, respectively. Better yet, the latest Gulfstream V was sold to Nathan Myhrvold, chief technology officer for Microsoft. Considered one of the leading technical minds in the world, Myhrvold said he ordered the $39-million jet after an extensive evaluation that included competing jets.

The ringing endorsement is welcomed by senior Gulfstream officials. The Gulfstream V is in heated competition with the newer-but later to market-Bombardier Global Express in the large-cabin, ultra-long haul market. Company officials also point out the Gulfstream V was the recipient of the 1997 Collier Trophy from the National Aeronautic Assn., one of the top honors in aviation.

With sales up a scorching 58 percent, to 52 aircraft through September 4 compared to the same period last year, Gulfstream now is setting its sights on broadening the company's capabilities in maintenance, service and completion, Boisture said. To this end, the company in August purchased K-C Aviation, a major business jet and outfitting chain with locations in Dallas, Appleton, Wisc. and Westfield, Mass.

The acquisition immediately doubles Gulfstream completion capacity while making its services more convenient to customers. "More importantly, it places Gulfstream in a position to provide its quality service to non-Gulfstream customers, including those flying business jets made by competing manufacturers," Boisture said. "That's a business we can grow."

Gulfstream will maintain or accelerate the marketing of K-C Aviation services and plans to retain as many of its talented employees as possible, Boisture said. The acquisition also helps Gulfstream reduce completion delays-reportedly as much as six months late-while production continues to accelerate. As planned now, Dallas and Appleton will concentrate on G-IVSP completions and Gulfstream Vs will be finished at company-owned facilities at its Savannah, Georgia., headquarters and Long Beach, Calif. A third site, in Brunswick, Georgia, will be devoted to work on jets in the Gulfstream Shares program. It's a large-jet fractional ownership plan jointly owned by Gulfstream and Executive Jet Inc.

The new facilities come on line just in time. Gulfstream tentatively plans to deliver 65 new Gulfstream IV-SPs and Gulfstream Vs in 1999. That's up from 51 in 1997 and 28 through the first half of this year. Other accelerating programs for the company include the continued expansion of Gulfstream Shares to the Middle East. The first jet will enter service there early next year. Driving the expansion is the fact that about 45% of aircraft shares in the program are held by entities outside the U.S. Overall, the Gulfstream/EJI program has 16 aircraft in service with orders placed for 34. The aircraft are building time at a 1,200-hr/yr. rate, about double that of typical Gulfstream owners.

A new venture with leasing company GATX, to be officially announced at NBAA, will provide a further market outlet. The first and only short-term, flexible operating lease program available for long-range, large-cabin business jets, it will offer Gulfstream IV-SP and Gulfstream V aircraft. Called Gulfstream Lease, it ordered five Gulfstream V and one Gulfstream IV-SP jets during last month's Farnborough air show in England. The first is scheduled to enter service in late 1999 or early 2000. Advantages include little up-front investment while customers can keep the jets off their balance sheets. Gulfstream Management, the company's aircraft management arm, will operate the aircraft.

Although first Global Express jets now are entering revenue service and the Boeing Business Jet will follow next year, Boisture is confident the Gulfstream V will continue to flourish. "The proof is in the reality. The Gulfstream V is proven in service. In the hands of our customers it does exactly we said it would do, including range, speed and fuel economy." he said. Indeed, "customers coming in for150-hr. inspections tell us it does more than we said it would do," Boisture said.

Compared with the much-larger BBJ, the Gulfstream V offers better speed, range, flexibility and supportability by the service-oriented business jet community, Boisture said. The 6,500-naut. mi.-range Gulfstream V also provides a healthier cabin environment for long-range trips. Boisture estimates the price of a completed BBJ is about 25% higher than the Gulfstream V while costing up to 60 percent more in operating costs. He concedes the BBJ has a larger cabin-but its size also makes it hard to keep your arrival a secret if sensitive negotiations are underway.

Gulfstream officials note world governments--a major customer sector--have stated their preference for the Gulfstream V. First deliveries of the Gulfstream V are planned to the USAF's VIP squadron at Andrews AFB, Md., this month, as the C-37A. The USAF has three C-37As on firm order and holds options for three more. The Savannah-based aircraft manufacturer also has sold some Gulfstream Vs for "special mission" operations it is prohibited from talking about.

With the addition of K-C Aviation, Gulfstream now employs over 7,000 workers. It had revenues of approximately $1.9-billion in 1997, and 1998 half-year results of $1.06-billion. As of mid 1998 about 100 aircraft, with a value of $3.2-billion, were under contract,

By Paul Proctor