Dassault Falcon Sales Sluggish as BRIC Economies Lag

Last year's sluggish sales of Falcon business jets was largely due to the slowing economies in emerging countries, Dassault CEO Eric Trappier said yesterday during a press briefing in Paris. There were gross orders for 45 Falcons received last year, and NetJets canceled an order for 20, bringing the net total to 25.

The order intake represented €1.6 billion ($1.8 billion) last year, compared with €3.9 billion ($4.3 billion) in 2014. Falcon salespeople hoped they could accelerate sales in the latter part of the year, but prospects postponed their decisions, Trappier said. The company also missed the Falcon delivery target, handing over 55 out of the projected 65. Falcon deliveries are expected to reach 60 units this year, according to Trappier.

“Brazil is not doing very well and it will take a few years before growth is back,” he said. In China, slower growth has combined with a crackdown on corruption, leading to a lesser appetite for business jets. India remains in the “great sales potential” category and Russia has suffered from low oil prices and international sanctions, Trappier added.

He confirmed that the first Falcon 5X will not be delivered until the first half of 2020, instead of the initially expected second half of 2017. Certification of its Snecma Silvercrest engine is now slated for 2018, according to Dassault. Trappier does expect “a few” cancellations due to the delay.

However, he said that the Falcon 8X program is on time, with certification planned for mid-year. Falcon 8X S/N 3, which will be used for marketing purposes, has received a full cabin interior. It is planned to undergo endurance testing this spring.