Dassault Aviation chairman and CEO Eric Trappier has seen a slight recovery in the business aviation market, he said yesterday during a media briefing highlighting the company’s 2018 results. “It’s not a boom in this market because the world economy is uncertain, but the U.S., Europe, and Russia remain quite dynamic. And Asia, too, except China,” he explained.
Trappier considers the Chinese business aviation market a “deception,” since there is still much work to do there to reform airspace restrictions and improve airport infrastructure. In the U.S., Trappier considers the reduction in corporate taxes a positive. “Our Little Rock facility will take advantage of it,” he said.
Trappier noted that the preowned business aircraft market still seems to show improvement. This has allowed Dassault to purge its stock of second-hand Falcons.
Meanwhile, Dassault plans to deliver 45 Falcons this year, compared with 41 in 2018 and 49 in 2017. “We want to remain cautious in terms of production,” added Trappier. In 2018, Falcon net sales amounted to €2.6 billion ($2.96 billion), compared with €3 billion ($3.42 billion) in 2017.
Net Falcon order intake amounted to 42 aircraft last year (52 orders and cancelation of the last 10 Falcon 5Xs) versus 38 in 2017 (41 orders and three Falcon 5X cancelations). Total 2018 net sales amounted to €5.08 billion ($5.78 billion), compared to €4.87 billion ($5.54 billion) in 2017, with an operating income of €669 million ($761.56 million), up 87.4 percent year-over-year.
Trappier gave some indications of where the company is going with its planned future Falcon program. “We carry on with the studies. We don’t want to go to the small business aviation segment, less than 3,000-nm range; it’s not for us. We have consolidated the 5,000- to 6,500-nm segment with the Falcon 6X, 7X, and 8X. Now, we have to modernize our offer below those segments of range.” In its 2019 outlook, the group said, “We confirm the future Falcon launch.”
Meanwhile, the Falcon 6X, which was launched last February, is on track for service entry in 2022, with the primary development stage completed and first structural parts being manufactured. The Pratt & Whitney Canada PW812D engine that will power the 6X is progressing well, with four engines being tested and 120 hours run on a flying test bed.
Last year also saw the certification of an enhanced flight vision system for the Falcon 8X, with similar approval for the 7X, 2000LX, and 2000LXS clinched last month.
On the military side, Dassault announced it will more than double production of the Rafale fighter this year, to 26 units, versus 12 last year (nine to Egypt and three to France). Net defense sales will likewise surge this year; last year, this was €2.48 billion ($2.82 billion), compared with €1.87 billion ($2.13 billion) in 2017.
“Our Rafale ramp-up is on track for a two-units per month rhythm,” said Trappier. A three-units rhythm is still envisioned if a new export contract is signed. Last year, Dassault signed a contract for 12 additional Rafales for Qatar, totaling 96 for export.
Early this year, the airframer delivered the first Rafale to Qatar, while shipments for India are scheduled to start midyear. Prospects still exist in India (for 57 Rafales for the Indian navy and 110 more for the Indian air force), Switzerland, and Finland.
The Future Combat Air System (FCAS) project was recently granted a two-year conception and architecture study under the leadership of Dassault Aviation and Airbus. Trappier said he hopes the official launch of demonstrators for the combat aircraft and its engine will be at the Paris Air Show in June.
