30 Jan 2007
PRESTWICK, Scotland – BAE Systems Regional Aircraft reported today that it had secured lease business across all its portfolios, new ‘spares by the hour’ contracts, together with continuing spares sales and modifications business worth nearly $350 million during 2006.
Announcing this figure today, Alan Fraser, Managing Director of Regional Aircraft stated: “ Despite a challenging marketplace Regional Aircraft continues to perform well to bring in new business worth $350 million. Our aircraft continue to find favour with new customers, while we have been successful in retaining key operators for the longer term and increasing their fleets. We are also entering new markets to extend the product life cycle as part of our proactive portfolio management.
“All of these factors emphasise the continuing relevance of our products and underscore the importance of our sustained investment across the board to keep them competitive. Our support business is now very robust and growing strongly with sales increases across all sectors. But we are not complacent and we will continue to drive the business forward to serve our existing and new customers well for the long term.”
During 2006 Regional Aircraft secured lease transactions on its BAe 146/Avro RJ and ATP portfolios involving 81 aircraft, business worth $185 million while the Jetstream 32 and 41 portfolios showed 50 sales and leases, worth a further $24 million.
Also during the year Regional Aircraft customised and re-delivered 27 BAe 146/Avro RJ, ATP and Jetstream 41 aircraft through 12 different completion centres.
New BAe 146/Avro RJ and ATP deals announced today and included in the 81 transactions are:
- lease of 10 Avro RJ85s for operation by CityJet of Ireland, wholly-owned subsidiary of Air France, as part of a major fleet re-equipment programme
- MDLR Airlines of India leased two Avro RJ70s
- National Jet Systems of Australia extended leases on four BAe 146s
- SATA Air Acores extended leases on two ATP regional turboprops.
In the Jetstream 32 and 41 portfolios new announcements are:
- lease extension of one Jetstream 41 with South African Airlink
- sale of two Jetstream 41s to Corporate Flight Management of the USA.
- Sale and lease of seven Jetstream 32s to International Air Parts of Australia as well as new Jetstream 32 sales and leases to customers in the USA, Dominican Republic, New Zealand and Venezuela
Highlights of the 2006 portfolio management performance were the continued long-term commitments secured for the BAe 146/Avro RJ from existing customers such as Lufthansa CityLine and Eurowings and the success of the ATP Freighter programme which secured further leases from lead operator West Air Sweden as well as business from new customers Atlantic Airlines, First Flight Couriers and Magic Bird.
Also of note during 2006 was the success in attracting new lease customers across the product range. As well as the three new ATP Freighter customers, Regional Aircraft secured six further new customers covering the BAe 146/Avro RJ, ATP passenger turboprop and Jetstream 41.
Regional Aircraft’s growing involvement in freighter conversion programmes has been emphasised with three new announcements today:
- re-launch of the 10-12 tonne BAe 146QT (Quite Trader) freighter conversion in a programme expected to be finalised shortly with Romanian aerospace companies;
- launch of the 3.5 tonne Jetstream 41 E-Class freighter.
- a 150% increase in the manufacture of the ATP Large Freight Door installation kits from conversion centre Romaero.
Regional Aircraft recorded continued success in its JetSpares and MACRO ‘spares by the hour’ support programmes with $50 million of new business secured during the year. Significantly all the new BAe 146/Avro RJ and ATP Freighter leasing customers also selected these support packages, emphasising the value of combining lease and Integrated Support programme offerings to the market.
In addition, Regional Aircraft recorded $74 million of continuing spares sales across the year, while the modifications business secured some $19 million of sales from over 20 customers including major conversion and customisation upgrades with CityJet, Swiss and the Amiri Flight/Royal Jet
Also announced today is a major upgrade modification of the Flight Management System on the BAe 146/Avro RJ. The selection of the Honeywell GNS-XLS system will allow compliance for Precision Area Navigation (PRNAV) operations later in 2007.
About BAE Systems
BAE Systems is the premier transatlantic defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. BAE Systems, with 88,000 employees worldwide, had 2005 sales that exceeded £12 billion ($22 billion), excluding the group’s former interest in Airbus.
For further information contact:
David Dorman, BAE Systems
Tel: +44 (0)1582 488336 Fax: +44 (0)1582 488447
ddaviddorman@aol.com
