Gulfstream’s GIII
By Mark Huber - April 1, 2009
The GIII cemented Gulfstream’s reputation as the leading business jet provider of the 1980s. It set speed and distance records in its category; easily traversed both the Atlantic and Pacific without a fuel stop (Savannah, Ga., to Hamburg, Germany, or Honolulu to Chicago nonstop); could be configured to seat 15 passengers; and was the first business jet to feature winglets as standard equipment.
Compared with its predecessor, the GII, the III could fly farther and faster and posted 15- to 20-percent better fuel economy. The speed improvement shaved an hour off east-to-west transcontinental flights. The GIII had more aerodynamic wings and nose, a sleek wrap-around windshield and a fuselage that was two feet longer.
It was also the first business jet to break through the $10 million price barrier–way through. By 1987, it was selling for $16 million, and despite better fuel economy, it still burns substantially more fuel than other aircraft in its class. While the GIII’s Rolls-Royce Spey engines (11,400 pounds of thrust each) were somewhat quieted with redesigned exhaust nozzles, they are still plenty loud and suck down 550 gallons per hour, easily a third more than the fuel consumption of a Falcon 900A (see chart on page 42).
This airplane also costs a lot to maintain and requires almost six hours of maintenance per flight hour. The Speys, with technology that dates back to the 1950s, are nothing if not robust and need to be overhauled only every 7,000 hours–equal to at least 10 years of average service and probably a lot more for most owners. However, the overhauls can run more than $1 million per engine.
Maintenance and fuel requirements drive the airplane’s variable cost per hour to nearly $5,000, annual fixed costs to almost $700,000 and a cost-per-mile to nearly $20. While you can find a good used late-serial-number GIII for less than $6 million, compared with $33 million for a new G450, make sure you have plenty of cash reserved for operations. This is an old airplane and components will break. The older models have an electrical system that is DC-based and non-VSCF (variable speed, constant frequency), as opposed to an AC, VSCF system on the newer ones.
The good news is that Gulfstream/General Dynamics still supports the GIII with parts and service that are best-in-class, according to an annual survey by our sister publication, Aviation International News. Conversely, these high operating costs have driven GIII resale values substantially below those of comparable aircraft.
An Ambitious Start
Work began on the GIII in 1976, when Grumman American, a division of defense contractor Grumman, still owned Gulfstream. Grumman’s initial plans for the airplane were ambitious–too ambitious, it turns out–and costs rapidly spiraled out of control. The company burned through nearly $130 million without even producing a prototype. Furious shareholders forced divestiture of the division, which, at the time, seemed like a financial black hole.
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