The continued slump in business jet sales and low demand for airliner maintenance and conversions has resulted in a 62% decrease in net profits at Israel Aircraft Industries (IAI) during the first nine months of the year.
Net profit was $11 million for the period, down from $30 million in the first nine months of 2002. The production rate of the IAI-assembled Gulfstream G100 and G200 business jets has reached an all-time low of nine aircraft a year.
IAI sources say that market conditions have forced Gulfstream to reduce the price of the G100/ G200 range.
In May 2001 Gulfstream purchased Galaxy Aerospace, the US-based company that marketed the IAI-built business jets.
IAI may be forced to lay off some employees if the planned cuts in the Israeli defence budget are approved.
Source: Flight International
