Falcon Sales Boost Dassault First-half Results

An increase in sales of new and preowned Falcon business jets helped lead to a 23.5 percent jump in Dassault Aviation’s first-half results, from €1.66 billion ($1.94 billion) in 2016 to €2.05 billion ($2.40 billion) in 2017, the company reported.

Operating income was stable at €123 million ($144 million), while net profit rose 7.5 percent thanks to the contribution of Thales's half-year results. Total order intake reached  €1.38 billion ($161 million), of which 83 percent involved exports.

Deliveries of Falcons increased from 15 to 17 year-over-year. And the preowned aircraft business was better, the company reported.

Net Falcon order intake was also positive, with 14 aircraft sold in the first half versus 11 in the same period last year. The orders included a fourth maritime surveillance Falcon 2000 ordered by the Japanese coast guard. Including new and preowned aircraft, the order intake for Falcons amounted to €1.029 billion ($1.20 billion) in the first half, compared with €778 million ($909 million) a year ago.

"The market for business jets is still difficult," said Dassault Aviation CEO Eric Trappier, who noted that depressed prices of preowned business jets are still hampering new sales. “There are some positive signs on the preowned market. They are starting to sell a little better.”

Trappier confirmed Dassault's forecast for 2017: an increase in total sales, with an anticipated 45 Falcon deliveries and nine Rafale fighters.

"We are approaching the launch of a new Falcon," he said, without specifying when the aircraft would be launched or any of its design characteristics.

Meanwhile, the Falcon 5X test campaign with temporary Silvercrest engines, manufactured by Safran, will allow Dassault to speed up the integration with the aircraft in the face of the four-year delay in the engine program, Trappier explained. The 5X flew for the first time on July 5 with “preliminary engines.”

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Trappier expressed interest in participating in the European MALE (medium-altitude long-endurance) drone, UCAV, and Future Combat Aircraft System (FCAS) projects. The CEO reaffirmed its willingness to sell Rafales to Malaysia, even though the country has reportedly delayed the decision to buy new combat aircraft. "There is no cancellation of this project as far as we know," Trappier said.

In India, the creation of a joint venture with the Indian group Reliance will support the policy of "Make in India" related to the sale of 36 Rafales there. But the aircraft manufacturer also wants to sell the marine version of the Rafale to India, with 57 aircraft currently in negotiation.