New products on schedule

In early March, Gulfstream's parent company, General Dynamics Corp. (NYSE: GD), lowered its 2009 earnings guidance and predicted weaker sales of its mid-size and large-cabin jets than previously forecast.

The company reduced its expected production of large-cabin aircraft -- all of which are built in Savannah -- from 94 to 73.

At the same time, General Dynamics CEO Nicholas Chabraja announced the mid-summer furlough of initial phase manufacturing personnel, a move designed to bring the production rate down accordingly. The decision to also furlough final phase employees came sometime later.

Meanwhile, progress on the Gulfstream G650, the company's largest-cabin, longest-range and fastest business jet, "continues unabated," Baugniet said this week.

Unlike its other four large-cabin aircraft, Gulfstream's flagship G650 is still in the development stage. It's designed to carry eight passengers and a crew of four on nonstop legs of 7,000 nautical miles, covering shorter distances at just under the speed of sound.

"The speed and ease with which the wing join, engine mount and fuselage components came together is a tribute to the people who designed and manufactured these major parts," said Pres Henne, senior vice president for programs, engineering and test at Gulfstream.

The G650 is on track to take its first test flight later this year and will be available for delivery in 2012. It carries a price tag of approximately $58 million.