EXHIBIT 11.1
                                      
                                      
              GULFSTREAM AEROSPACE CORPORATION AND SUBSIDIARIES
                  Computation of Earnings per Common Share
                                      
                    (In thousands, except per share data)
                                 (Unaudited)
                                      
                                      
<TABLE>                                      
<CAPTION>
                                        Three months ended   Six months ended
                                             June 30,             June 30,
                                        -----------------    -----------------
                                          1997      1996       1997     1996
                                         -------   ------     ------   -------
<S>                                      <C>       <C>        <C>      <C>
Net income applicable to common shares   $39,504   $9,282     $79,534  $15,359
                                         =======   ======     =======  =======
Shares:                                                                        
  Average shares issued and                                                    
  outstanding (after giving effect to                                            
  the Recapitalization)                   74,068   65,403      73,994   65,403
                                                                               
  Exercise of certain stock options                                            
  with the Offering                            -    3,949           -    3,949
                                                                               
  Incremental shares applicable to stock                                         
  options outstanding after the exercise                                         
  of certain stock options with the                                              
  Offering                                 4,651    4,624       4,644    4,624
                                                                               
  Shares issued pursuant to the                                                
  Offering                                     -    4,559          -     4,559
                                         -------   ------      ------    -----
                                                                               
 Weighted average common and common                                             
 equivalent shares outstanding            78,719   78,535      78,638   78,535
                                         =======   ======      ======   ======
                                                                               
 Net income per common and common                                        
 equivalent share                        $   .50   $  .12      $ 1.01   $  .20
                                         =======   ======      ======   ======
                                                                               

Note:  Shares and stock options issued prior to October 16, 1996, the date
       of the Offering (see Note 10 to the consolidated financial statements
       included in the 1996 Annual Report to Stockholders), are treated as
       outstanding for all reported periods.

</TABLE>