13 Jun 2005
The continued popularity and cost competitiveness of the BAe 146/Avro RJ jetliner family has been strongly demonstrated in recent weeks with major leasing deals signed between BAE Systems Regional Aircraft and SN Brussels Airlines, the principal Belgian carrier, and also with three of the airlines that make up the Lufthansa Regional grouping.
At a time of severe competition in the crowded 70-110 seat regional jet sector a number of large airlines have taken the view that new regional jets offer only marginal improvement over modern used regional jets. In some cases the new regional jets have less operational capability, but entail significant risk in terms of financial exposure and commitment period – this at a time of considerable market uncertainty, especially in the regional sector with the ferocious competition from the low-cost carriers.
The deal with SN Brussels Airlines is for the sale and leaseback of 23 of the airline’s fleet of 26 Avro RJ85/100 jetliners.
Regional Aircraft will acquire the aircraft in stages over the next five years with long-term leases back to SN Brussels Airlines. The RJ fleet will remain a core part of the SN Brussels fleet into the next decade.
The Avro RJ is the backbone of the SN Brussels Airlines regional fleet that, together with six BAe 146 aircraft, service an extensive European network linking the important Brussels hub with some 46 destinations in 19 countries.
Mr. Michel Meyfroidt, Member of the Management Board of SN Brussels Airlines said today: “ We undertook a deep study of the Avro RJ in comparison with the newer regional jets that were being offered to us. Our conclusion is that for SN Brussels Airlines the Avro product is the most cost-effective solution to meet our regional jet requirements. Our passengers love to fly in the aircraft and we are happy to continue operating it for many more years.”
In a further demonstration of this trend Regional Aircraft and three of the five airlines within the Lufthansa Regional branded grouping have signed a series of major lease transactions under which 11 further BAe 146-300s are being added together with sale and leaseback extensions on three Avro RJ85s.
This 30 percent BAe 146 capacity increase makes the Lufthansa Regional grouping responsible for the world’s largest BAe 146/Avro RJ fleet with 37 aircraft. The impending absorption of Swiss by Lufthansa will add a further 19 Avro RJs to the numbers. It also underscores the BAe 146/Avro RJ as the Lufthansa 100-seat regional jet of choice.
Lufthansa Regional is a new concept unveiled in October 2003 under which five airlines - Lufthansa Cityline, Eurowings, Augsburg Airways and Contact Air of Germany, plus Air Dolomiti of Italy – are members of a tighter cooperative group with a steering committee comprising the chiefs of the five airlines together with Werner Knorr as Senior Vice President, representing Lufthansa.
The three separate lease transactions cover:
- The addition of six further BAe 146-300s to the existing Eurowings fleet of eight BAe 146-200/300s. The six aircraft (Msn E3123, E3125, E3158, E3162, E3165 and E3203) will be delivered over a period from mid-April to the beginning of September;
- A further five BAe 146-300s are being leased by Air Dolomiti – which becomes a new BAe 146 operator. The five aircraft (E3129, E3149, E3155, E3169 and E3193) are being delivered from the beginning of April through to mid- September;
- The sale and leaseback by Regional Aircraft of three RJ85s operated by Lufthansa Cityline. These three aircraft (E2246, E2253 and E2256) bring the number of RJ85s on lease from Regional Aircraft to Lufthansa Cityline to 13. The remaining five aircraft, out of the 18-strong fleet, are owned outright by Lufthansa Cityline.
“These deals represent another significant endorsement of the BAe 146/Avro RJ family”, said Alan Fraser, Managing Director of Regional Aircraft,. “and will ensure that the BAe 146/Avro RJ family will remain in front line service with key European carriers for many years to come.”
BAe 146 continues to appeal to new and existing customers
In addition to these major leasing deals Regional Aircraft has also secured two new customers for the BAe 146 in recent weeks and added a further aircraft to an existing operator.
In Eastern Europe, Romavia of Romania becomes a new customer and has added a BAe 146-200 (E2227) to its fleet. Configured with 84 seats this aircraft is being used on regional charter flights from Romania.
In the Asia-Pacific region, Asian Spirit of the Philippines is another new customer with a lease deal for four BAe 146s (two Series 100 and two Series 200s). The first BAe 146-100 (E1009) has been delivered with the second (E1005) due to follow later this year. The two Series 200s will be delivered in 2006.
An existing customer - Atlantic Airways of the Faroe Islands, which has been operating BAe 146s since 1988, has added a fourth Series 200 (E2115) in a lease transaction with Regional Aircraft.
About BAE SYSTEMS
BAE Systems is an international company engaged in the development, delivery and support of advanced defence and aerospace systems in the air, on land, at sea and in space. The company designs, manufactures and supports military aircraft, surface ships, submarines, fighting vehicles, radar, avionics, communications, electronics and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years. It is at the forefront of innovation, working to develop the next generation of intelligent defence systems.
BAE Systems has major operations across five continents and customers in some 130 countries. The company has more than 90,000 people and generates annual sales of over 13 billion through its wholly-owned and joint venture operations.
For further information, please contact:
David Dorman, BAE Systems
Tel: +44 (0) 1582 488336 Fax: +44 (0) 1582 488447
ddaviddorman@aol.com
www.regional-services.com
