John Rosanvallon is president and ceo of Dassault Falcon Jet, where he has worked for 32 years. He is a Chevalier of the French “Légion d’Honneur”, and a member of several French-American and aerospace organisations. He has received numerous honours in recognition for his service to the industry. Liz Moscrop catches up with him at the company’s Teterboro facility
What trends are you noticing?
Our EBACE customers are becoming more astute, Lots of our customers in the 7X programme are past customers who demand many challenging requirements. It is an interesting time in our history. In 40 years in the business I have never seen the type of volumes that we’re seeing at the moment. It has also become truly global marketplace.
Two or three things happened in the last three years, which I see as long-term positive trends that can limit the impact of any huge downturns. The geography of our customers has changed completely and the customer profile changed substantially. Both elements should help us develop more stable business for the long term. We announced for the first time in 2005 that our non-US business represented more than 50% of our core business. This trend was confirmed and consolidated in 2006, even putting aside Netjets (who ordered 24 Falcons last year). The first third of 2007 has confirmed this trend, and I think, based on the portfolio of negotiations in the pipeline, that will remain at least for 2007.
What about geographical trends?
Western Europe is today the number two in terms of fleet size. There is still a huge gap between the US and Europe. There are 10,000 jets in the US, versus roughly 2,000 in Europe, a ratio of one to five. Brazil and Mexico are two key markets. Eastern Europe and Russia are very new markets to business aviation. The Russian aviation industry is very strong, but has zero airplanes in terms of business aviation, except for converted yaks. In the Middle East it is really only the governments or the royal families who keep buying very big airplanes. The wealth created there means you have more traditional corporate pilots coming to business aviation. These are factors contributing to the shift we’re discussing.
How has your customer profile changed?
For decades we sold primarily to Fortune 500 companies. Today they represent half of our business, the other half coming from successful mid-size companies. This should make our business more stable if the trend continues.
If someone buys an aircraft at EBACE, when will they get it?
The average delivery slot for a Falcon 2000 or 900 is in 2009. In 2003 we had a severe downturn. Don’t forget we only sold 40 aircraft then, and in 2006 we sold 158, which was our all time record. Even if you take out the Netjets Falcons that’s still 134, which is an improvement ratio of almost 1:4 between the severe downturn and a quick upturn.
What is the toughest part of the process of building an aircraft?
The completions end of the cycle is the most challenging for everybody in the business. We have established a reputation with the development of Little Rock. We are still the only manufacturer who does their own completions, which means we can do them in a four-month time frame - which is the same with Jet Aviation. Almost everybody else does six-months plus. We have invested lots of money and brain cells in refining the process. We have a 20-year relationship with Jet aviation, who specialise in 2000s. They are building their own Falcon hangar.
Why do your customers remain loyal to DFJ?
Our aircraft hold their resale value no matter what. That segment is a little crazy right now -the 0-5 years old airplane. In the last six months we have seen transactions above US$50m, that never existed before. International buyers particularly are ready to pay a significant premium for availability now or in the short term. We would like to have an inventory of more used aircraft, but it is expensive to buy high serial number 2000 and 2000EX.
When will you launch your next aircraft?
From a product standpoint we are ready for our next challenge. What makes it more exciting is that in the 7X we developed a brand new aircraft. Now the same team fresh from the 7X development can use their talent and experience on new models.
And finally…you have been with Dassault for 32 years, what makes you stay?
I started on my 24th birthday. (At this point Mr Rosanvallon points out that Falcon’s press director Vadim Feldzer who is present is a ‘rookie’ as he’s only been with the company for 11 years). The nature of aerospace is that it has more of a family spirit than other industries. There is a certain family feeling amongst people worldwide, which encourages friendship. It is born of a passion for aviation.
Source: Flight Daily News
