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20 MAR 2009

Dassault Falcon's 2008 Sales Results

Andrew Ponzoni
201-541-4588

(St. Cloud, France, March 19, 2009) – At today’s annual financial analysts meeting, Dassault Aviation Chairman and CEO Charles Edelstenne announced sales results for 2008.  Dassault received a net total of 115 firm orders worldwide for Falcon business jets in 2008. 

Dassault Aviation’s 2008 consolidated sales were 3.75 billion Euros with Falcon business jets accounting for 62% of that total.  Dassault delivered 72 Falcon business jets for entry into service in 2008. The delivery rate of completed Falcons is expected to increase to 90 aircraft in 2009 while the production of green aircraft will be reduced as market conditions demand. 

"There is no doubt that we are in the midst of a very challenging economic environment.  However, Dassault has always taken a long term view,” said Edelstenne.  "We will continue our ongoing investments in customer support as well as technology and innovation. A major expansion for our company owned Service Center network is also on schedule.  The Falcon 2000LX will be certified soon.  EASy Phase II development is accelerating and development of the SMS continues.”

"We began to see a slowing in demand in late 2007 but the level of activity remained strong through the first three quarters of 2008,” said John Rosanvallon, President and CEO of Dassault Falcon.  "The fourth quarter of 2008 was challenging with rising pre-owned inventories and a significant contraction of available credit.” 

"While we all must deal with the crisis we are currently facing, it is important to remember that there are enduring facts regarding the advantages of business aviation.  These facts are critical to aircraft operators who rely on their business jet for their efficient transportation and as a key driver to expansion and growth of their organization,” said Rosanvallon.  "Growth is also vital to the economies that rely on business aviation for high paying jobs in manufacturing, operations and support.  When they’re combined, our industry is critical to the successful conduct of international commerce that will lead us out of today’s difficult environment.”

Rosanvallon finished, "Dassault remains in good position to take advantage of future growth and to service the still expanding fleet of Falcons.”

2008:  Expansions for the Future

Dassault significantly increased Falcon support capacity in 2008 with the announcement of two new factory owned service centers in Reno, Nevada and Sorocaba (Sao Paulo) Brazil.  Additionally, the capacity of the Le Bourget and Little Rock Service Centers grew as multi-year expansion projects were completed. 

"As the worldwide Falcon fleet continues to grow, Dassault Falcon has undertaken a number of pro-active steps to aggressively grow our Factory owned service capabilities,” said Jacques Chauvet, Senior Vice President of Worldwide Customer Service at Dassault Falcon.  "Even in these difficult times, our factory owned service center network continues to grow so we can help our operators stay competitive in their marketplace.”

Also in 2008, Dassault Falcon opened a 20,000 square foot spares distribution center in San Jose, California in a joint business venture with UPS.  "Opening this facility is part of our strategic plan to move Genuine Dassault Falcon Replacement Parts closer to the operator," said Frank Youngkin, Dassault Falcon’s Vice President of Customer Service.  "Getting our customers the parts they need, when they need them is at the forefront of everything we do.  We've dramatically increased our inventory levels and are seeing a corresponding reduction in delivery times."

The San Jose facility serves multiple roles.  The first is to support the growing West Coast base of Falcon operators which has climbed dramatically in recent years with same day, overnight or self pickup of Genuine Dassault Falcon Replacement Parts. The second role is to extend the ordering deadline for next day delivery to East Coast operators.  With the new facility in operation, orders received by 10 pm Eastern Standard Time can be sent for next day delivery on the West Coast.  The San Jose facility will also serve a support function for outlying spares warehouses.

A vast expansion project that doubled the size of Charles Lindbergh Hall in Bordeaux-Merignac was recently completed.  Opened in 2003, Lindbergh Hall is the main assembly center of all Falcons and now has the capacity to handle 28 Falcons undergoing various stages of production.  Ground breaking on the additional 200,000 square feet of capacity occurred in January 2008 and was completed and in operation in January 2009.

2008:  Product Development Continues

One of the highlights of 2008 occurred at EBACE in May when Dassault announced the 900LX, the next member of the highly efficient family of Falcon business jets.  The Falcon 900LX will be built on the same platform as the Falcon 900EX EASy but will feature winglets and an extended range to 4,800 nautical miles. Certification is expected in the first half of 2010. It will be available for deliveries starting mid 2010 at which time it will start to replace the Falcon 900EX.

John Rosanvallon, President and CEO of Dassault Falcon said at the time of the launch, "The 900LX will make one of the most popular Falcon series much more capable, economical and environmentally responsible to operate – issues that mean more today than ever before.  Our customers have been telling us that efficiency is becoming a bigger part of the decision making process when acquiring a business jet. The 900LX will make the most efficient airplane in its class even more so.”  The Falcon 900LX will burn 7% less fuel than the Falcon 900EX.

At NBAA in October 2008, Dassault launched  "EASy Phase II” a host of enhancements to the award-winning EASy flight deck that will include synthetic vision technology.  The synthetic vision system is being developed in conjunction with Honeywell Aerospace and will be offered as an option in new aircraft and as a retrofit in all EASy models.

"When EASy was introduced, it was a revolutionary advancement in cockpit technology and a giant step forward for business aviation," said Rosanvallon.  "And today EASy continues its development with the addition of synthetic vision that will move today’s most advanced flight deck even further ahead into the future."

Synthetic Vision will be offered as an option as part of 'EASy Phase II,' to both new and existing EASy operators in the last quarter of 2009 on the Falcon 900EX EASy and Falcon 900DX.  It is scheduled to be available for the Falcon 7X, Falcon 2000LX and Falcon 2000DX in mid-2010.

Dassault Falcon is responsible for selling and supporting Falcon business jets throughout the world. It is part of Dassault Aviation, a leading aerospace company with a presence in over 70 countries across five continents. Dassault Aviation produces the Rafale fighter jet as well as the complete line of Falcon business jets. The company has assembly and production plants in both France and the United States and service facilities on multiple continents. It employs a total workforce of over 12,000. Since the rollout of the first Falcon 20 in 1963, 2000 Falcon jets have been delivered to 67 countries worldwide. The family of Falcon jets currently in production includes the tri-jets—the Falcon 900EX EASy, 900LX, and the 7X—as well as the twin-engine Falcon 2000LX.