General Dynamics and Executive Jet Announce Deal Worth $2 Billion for Super Mid-Size Galaxy Aircraft and Long-Term Maintenance
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today announced an order from Executive Jet, Inc. for 50 super mid-size Galaxy aircraft and long-term maintenance and options for 50 more aircraft worth approximately $2 billion. This morning, General Dynamics announced that it would acquire Galaxy Aerospace Company, LP, in a transaction expected to close next month.
The Galaxy business jet entered service with customers in January 2000 as the first aircraft in the new super mid-size class. Launched well ahead of its competitors, it has the longest range, largest cabin volume and most balanced overall performance in the super mid-size aircraft category.
"Executive Jet’s order represents a major endorsement of the Galaxy business jet and signals Executive Jet’s intention to be first to market in the super mid-size fractional ownership business," said Bill Boisture, General Dynamics executive vice president and president and chief operating officer of its Gulfstream Aerospace unit. "This order also
recognizes the continuing success of our partnership and our combined commitment to the success of the fractional ownership business."
The Galaxy fleet will be serviced by General Dynamics service centers – operated by its Gulfstream Aerospace and General Dynamics Aviation Services divisions – throughout North America.
"Our successful partnership with Gulfstream and the associated experience with its excellent aircraft services and support finalized our decision to purchase the Galaxy aircraft," said Richard Santulli, chairman, Executive Jet, Inc. "We plan to introduce the first Galaxy business jet into the NetJets® fractional aircraft ownership program in the 2nd quarter 2002."
Designed for individuals or corporations with less than full aircraft requirements, the NetJets fractional aircraft ownership program allows individuals and companies to own aircraft without the substantial investment required for outright aircraft purchase. The NetJets program has proven to be extremely valuable for companies who have invested in whole aircraft ownership and need NetJets to meet their supplemental lift requirements.
Executive Jet is the world’s largest operator of private business jets. Richard Santulli, Executive Jet’s chairman, introduced the concept of fractional aircraft ownership in 1986, and the popularity of the company’s NetJets program has surged over the last decade. Today, Executive Jet manages 345 aircraft, with more than 596 aircraft on order. In 2000, NetJets will fly more than 200,000 flights for NetJets owners to more than 92 countries.
In the last five years, Executive Jet has ordered 941 new aircraft for the fractional ownership program with orders totaling more than $17 billion. The purchase of 50 Galaxy aircraft and options for 50 additional aircraft and the maintenance agreement is a further expansion of the NetJets fractional ownership program to meet the varying needs of NetJets owners.
To date NetJets orders and options for General Dynamic’s Gulfstream aircraft have reached 88 -- comprising 40 operational Gulfstream IV-SPs with 16 more on order. In addition, orders and options have been placed for 32 Gulfstream Vs, of which two are operational today.
General Dynamics, headquartered in Falls Church, Va., has leading market positions in business aviation, information systems, shipbuilding and marine systems, and land and amphibious combat systems. The corporation employs approximately 46,000 people worldwide and anticipates 2001 sales of approximately $11.5 billion.
Executive Jet, a Berkshire Hathaway Inc. company, is the largest provider of fractional aircraft ownership offerings in the world through its NetJets® programs. NetJets programs are available in the U.S., Europe and Middle East, with plans underway for NetJetstm Asia and NetJetstm South America. More information on Executive Jet and its NetJets programs is available through Executive Jet’s website at www.netjets.com.
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Any "forward-looking statements" contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Tuesday, May 1, 2001
Press Contact: (703)876-3190
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