New long-haul business jets give the market new momentum

The Gulfstream G500 and G600 are hot new arrivals on the large-cabin business jet scene—the market segment with the strongest growth and the highest revenue.

06.2019 | Text: Andreas Spaeth

Text:
Andreas Spaeth ist seit über 25 Jahren als freier Luftfahrtjournalist in aller Welt unterwegs, um Airlines und Flughäfen zu besuchen und über sie zu berichten. Bei aktuellen Anlässen ist er ein gefragter Interviewpartner in Hörfunk und Fernsehen.

Finally, the bruised busi­ness avia­tion mar­ket is start­ing to show long-awaited signs of re­cov­ery. At the start of the glo­bal fi­nan­cial cri­sis in 2008, annual busi­ness jet de­liv­eries were peaking at around 1,300. These were big num­bers at the time con­sid­er­ing that busi­ness jets serve a niche mar­ket seg­ment. In the wake of the re­cession, how­ever, annual deliveries slumped, falling by around 50 per­cent to a level they would re­main at for many years to come. After almost a de­cade of stag­na­ting pro­duc­tion vol­umes, the mar­ket greatly wel­comes any sti­mu­la­tion it can get.

Now more opti­mis­tic, analysts are confi­dent that 2019 will be the year when things start to pick up in the busi­ness avia­tion sector. After all, new air­craft models are spar­king keen inte­rest from an exac­ting clien­tele with cash to burn—in a seg­ment where single air­craft are avail­able for approxi­mately 30 million U.S. dollars but where it’s usual to pay some­where in the re­gion of 40–75 million for a brand-new pri­vate jet for long-haul routes. Ana­lysts believe that four new­comers to the biz­jet mar­ket will drive up sales in 2019 by more than ten per­cent com­pared to the pre­vious year.

**Promising market:** MTU plans to triple its revenue in the business jet sector in the next ten years. Hover over the image for a bigger view

Promising market: MTU plans to triple its revenue in the business jet sector in the next ten years.

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Promising market: MTU plans to triple its revenue in the business jet sector in the next ten years.

**PW500:** MTU joined this com­mer­cial en­gine pro­gram for mid­size busi­ness jets in 1993 with a work­share of 25 per­cent. Hover over the image for a bigger view

PW500: MTU joined this com­mer­cial en­gine pro­gram for mid­size busi­ness jets in 1993 with a work­share of 25 per­cent.

aeroreport_business-jets_2

PW500: MTU joined this com­mer­cial en­gine pro­gram for mid­size busi­ness jets in 1993 with a work­share of 25 per­cent.

**PW800:** The PW800 is part of the PurePower® engine family from Pratt & Whitney. MTU Aero Engines holds a 15 percent work­share in the pro­gram. Hover over the image for a bigger view

PW800: The PW800 is part of the PurePower® engine family from Pratt & Whitney. MTU Aero Engines holds a 15 percent work­share in the pro­gram.

aeroreport_business-jets_3

PW800: The PW800 is part of the PurePower® engine family from Pratt & Whitney. MTU Aero Engines holds a 15 percent work­share in the pro­gram.

**Years of experience:** To date, MTU has de­livered some 7,000 mo­dules for the Pratt & Whitney Canada PW300 and PW500 busi­ness jet en­gines. Hover over the image for a bigger view

Years of experience: To date, MTU has de­livered some 7,000 mo­dules for the Pratt & Whitney Canada PW300 and PW500 busi­ness jet en­gines.

aeroreport_business-jets_4

Years of experience: To date, MTU has de­livered some 7,000 mo­dules for the Pratt & Whitney Canada PW300 and PW500 busi­ness jet en­gines.

More range, more luxury and more space

“There’s a sig­ni­fi­cant, almost end­less de­sire for more range, more luxury and more space among busi­ness-jet buyers,” says David Tyerman from Cormark Securities in Toronto. “We saw that with the G650, and the Bombardier Global 7000 takes it yet another step further. Every time a manu­facturer comes out with a pro­duct that’s more capable, there seems to be a mar­ket that we didn’t know existed.” Bombardier has now extended the base­line range of its Global 7000 to 13,500 kilo­meters, meaning the ultra­long-range air­craft (now known as the Bombardier Global 7500) can whisk up to 19 passengers nonstop from New York to Hong Kong, or from Singapore to Munich, in sublime com­fort.

Three rival companies dominate the long-haul bus­iness jet mar­ket: Bombardier (Canada), Gulfstream (U.S.) and Dassault (France). Gulfstream previously laid claim to the furthest reach with its G650ER, which offers an opera­ting range of just over 12,000 kilo­meters. Now the jet has been ousted from the top spot by the even further-flying Bombardier Global 8000, which can cover a distance of 14,600 kilo­meters with­out stopping to re­fuel. How­ever, it is the G500 and G600, two new­comers from Gulfstream, that are really sha­king up the mar­ket.

Higher efficiency engines boost the market

Even to the un­trained eye, the exterior of a Gulfstream jet is easily dis­tin­guish­able from other manu­fac­tur­ers’ models by its dis­tinc­tive oval win­dows. But the dif­fer­ences that make the dif­fer­ence aren’t ap­par­ent at first glance. Two key ways to in­crease the range of busi­ness jets is to give them lar­ger tanks and more efficient en­gines. The smaller G500 and the stretched, longer-reach variant, the G600—with a range of ap­proxi­mate­ly 12,000 kilo­meters—are both powered by the Pratt & Whitney Canada’s new PW800 en­gines. Munich-based MTU Aero Engines holds a 15 per­cent work share in this en­gine pro­gram, with res­ponsibility for the low-pressure tur­bine and various sta­ges of the high-pressure com­pressor.

The Gulfstream sisters

Gulfstream G500 Like the G600, the smal­ler G500 can car­ry 19 pas­sen­gers but has a shor­ter range of 9,630 kilo­meters.

Gulfstream G600 The G600 and the G500 both reach speeds of Mach 0,9, ma­king them the fas­test jets in their ca­te­go­ry.

When it comes to en­gines for busi­ness jets, MTU has years of ex­perience under its belt. “We focus on the mediumand large-cabin jets,” explains Wolfgang Mattig from MTU in Munich, where he is re­spon­sible for pro­grams de­livered in partner­ship with Pratt & Whitney Canada. MTU holds stakes of bet­ween 15 and 25 percent in the slightly smaller PW300 and PW500 busi­ness jet en­gines: “The fleet powered by these en­gines is growing fast. We’ve already de­livered around 7,000 modules to our part­ners in Canada,” Mattig says. French ma­nu­fac­turer Dassault’s popular Falcon 7X and its suc­ces­sor, the Falcon 8X, are po­wered by the PW307A and the PW307D res­pec­tive­ly and MTU has a work­share in both.

The PW800 is a re­cent addition to MTU’s busi­ness jet port­folio. “With our stake in this new Pratt & Whitney Canada en­gine pro­gram, we looking to tap into the op­por­tu­nities this seg­ment offers,” Mattig says. The PW800 has the same core en­gine as the mo­dels that po­wer the A320neo, A220, Embraer E2 and Mitsubishi MRJ pas­sen­ger air­craft. It’s also set to be­come the pro­pul­sion sys­tem for an­other im­por­tant busi­ness jet: the new Dassault Falcon 6X, which is sche­du­led to make its mai­den flight in 2021 and will form the ba­sis for a brand new ca­te­go­ry of air­craft.

Mach 0.98 and maximum headroom of 1.98 meters

The new­comers on the busi­ness jet scene have clear­ly made quite an im­pres­sion on Mattig. Both models have the PW800 as their ex­clu­sive power­plant: “As clean­sheet designs, the G500 and G600 aircraft reach speeds of Mach 0.90, out­per­for­ming all other jets in their class. When it come to the tal­lest and wi­dest cabin, the Falcon 6X—with its maxi­mum head­room of 1.98 meters—has the edge. These im­pres­sive fea­tures are sure to cause a stir among busi­ness jet cus­tom­ers, almost 65 per­cent of which are based in North America; an­other 13 per­cent are in Europe and 12 per­cent in South America.

MTU is op­ti­mis­tic about the po­ten­tial this sector holds. “The market for large-cabin busi­ness jets looks very prom­is­ing,” Mattig says, “and we ex­pect our bizjet sales to triple in the next ten years.” Analysts at Aviation Week are also ex­pecting an up­tick in the mar­ket: ac­cord­ing to a recent fore­cast, 792 busi­ness jets are slated for de­livery world­wide in 2019, with this num­ber growing to 917 in 2028. What’s also note­worthy about this fore­cast is that for the same period it anti­ci­pates de­live­ries of ultra­long-range busi­ness jets (such as the G500 and G600 or the Dassault Falcon family) to ge­ne­rate the high­est re­ve­nue of any air­craft cate­gory at al­most 105 billion U.S. dollars, trailed by large-cabin jets at around 30 billion U.S. dollars.

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