Progress with the flight testing of the EH 101 continues, with the introduction of PP3 into the programme on 30 September, 1988. The second of the test fleet to be completed in Britain, this is the civil prototype (G-EHIL), powered by General Electric CT7-6 turboshafts.

The US Navy announced in October 1988 that it had selected Lockheed’s proposal for an improved P-3C Orion to meet its requirement for a Long-Range Air ASW-Capable Aircraft (LRAACA).

Gulfstream Aerospace has joined forces with Swearingen Engineering and Technology Inc, to develop the latter's SA-30 six/eight-seat bizjet.