Graham Warwick/ATLANTA
EXECUTIVE JET Aviation (EJA) has ordered seven Gulfstream IV-SP business-jets, and taken options on 13 more GIV-SPs and two long-range Gulfstream Vs, for its NetJets fractional-ownership programme. The deal, worth more than $500 million, including interior completion and maintenance of the aircraft, represents Gulfstream's largest-ever order.
The seven GIV-SPs on firm order will be delivered this year and next. EJA plans to sell eighth and quarter shares in the aircraft at prices yet to be established. The Montvale, New Jersey-based company operates 25 Cessna Citation S/IIs and 13 Raytheon Hawker 1000s under the NetJets programme, and has 25 Citation Ultras on order for delivery beginning in June.
EJA says that it has placed orders and options worth more than $900 million over the past 18 months. "We did not step into this investment without doing our homework," the company says, noting that actual and potential customers have expressed interest in part-ownership of a Gulfstream. The Citation S/II, Ultra, Hawker 1000 and GIV represent "a nice family of alternatives" for fractional owners, EJA says.
The company expects Gulfstream shareholders to include existing NetJets members, operators of smaller business jets with an occasional need for a larger aircraft, operators of large business-jets wanting a back-up aircraft, and customers not presently operating a business aircraft.
Under the NetJets programme, EJA sells shareholdings in aircraft which it then operates on behalf of the owners. Shareholding prices range from $330,000 for an eighth share of an S/II, to $3 million for a quarter share of a Hawker. Owners pay a monthly management fee and an occupied-hour fee and each quarter share guarantees 1,000 flight hours over five years. EJA undertakes to have a Citation available within 4h of an owner's request, and a Hawker within 6h. Availability of the GIV has yet to be determined.
The GIV options can be exercised for deliveries in 1997 and 1998, while the GV options are for deliveries in 1998-9, Gulfstream says.
EJA says that it placed the GV options to reserve delivery positions, but could convert them to additional GIVs.
Source: Flight International
