By Allison Lampert and David Shepardson
WASHINGTON (Reuters) - The Federal Aviation Administration (FAA) on Friday said it certified General Dynamics Corp (NYSE:GD)'s Gulfstream flagship G700 business aircraft, driving fresh competition in the top end of the market for luxury jets.
Gulfstream had previously expected to obtain certification of the large-cabin jet, which competes with Canadian private planemaker Bombardier (OTC:BDRBF)'s Global 7500, in late 2023 and had planned to deliver 19 of the aircraft.
The process for certifying new aircraft in the United States has come under greater scrutiny following the fatal crashes of two flights involving the Boeing (NYSE:BA) 737 MAX in October 2018 and March 2019. Industry officials expect that to persist after a door plug blew off an Alaska Airlines MAX 9 mid-flight in January.
Gulfstream President Mark Burns in 2019 said he believed the FAA would seek more information during the G700 certification, following the crashes, but did not expect any unreasonable requests.
Gulfstream said the G700 will have takeoff and landing distances shorter than originally anticipated.
"We have successfully completed the most rigorous certification program in company history with the G700," Burns said.
In September, the company announced performance improvements, saying the G700 range increased to 7,750 nautical miles (14,353 kilometers) at Mach 0.85, as has its maximum operating speed to become the fastest Gulfstream jet.
Business jet makers expect sustained customer appetite for private planes after a boom during the COVID-19 pandemic, but slowing 2024 global growth and the increasing availability of pre-owned planes could weigh on demand.
Boeing has been awaiting certification of its smaller 737 MAX 7 and larger MAX 10 for years, and now faces new hurdles after it withdrew in January a request for a key safety exemption that could have allowed the FAA to speed approval for the MAX 7.