29 Jan 2009 | Ref. 014/2009
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Impression of BAe 146 Airtanker
BAE Systems Regional Aircraft reported today that despite the global economic recession and the downturn in airliner markets, it continues to achieve significant success in placing its portfolio of BAe 146/Avro RJs regional jets with both existing and new customers.
Despite difficult trading conditions, the Asset Management team of Regional Aircraft secured a total of 41 separate BAe 146/Avro RJ transactions during the year.
In achieving this performance, Asset Management outperformed its market competitors who are also offering this aircraft type. The Asset Management trading portfolio accounts for some 40 per cent of the total availability of the aircraft, but the sales and commercial team estimates it secured at least 45 per cent of the total business transacted.
Paul Stirling, Executive Vice President of BAE Systems Regional Aircraft stated today: “We have left no stone unturned to secure business and we are active in four separate market sectors which demonstrates the continued versatility and attraction of the aircraft.
“In all of these sectors, the low capital cost of the aircraft delivers competitive overall economics and is a low risk growth option in difficult times.”
New 2008 business announced today includes:
• Airline/passenger market – the sale of two BAe 146-200s to National Jet Systems, Australia’s largest supplier of contracted air transport services and the acquisition of a Series 200 to Air National, New Zealand’s leading dedicated private and corporate charter airline.
These new deals are on top of previously announced transactions during the year which included major lease extensions in Europe with Malmö Aviation of Sweden on its fleet of nine RJ100s, Blue 1 of Finland (RJ85) and with Atlantic Airways of the Faroe Islands (BAe 146-200). Other lease extensions included National Jet Systems (BAe 146-100) and SA Airlink (BAe 146-200).
New leases secured were two RJ100s to PT Riau of Indonesia and Romavia of Romania for one BAe 146-200. Among the sales achieved were three BAe 146-200s for operation by Air Congo of Brazzaville, Republic of Congo and one Series 200 to Hemus Air of Bulgaria. Also achieved was the sale and leaseback of three RJ100s with Brussels Airlines.
Paul Stirling added: “Our market position in Europe remains very strong, especially for the Avro RJ which will continue in service with a number of mainline carriers well into the next decade. Meanwhile we are also winning new business in developing markets, particularly in Africa and Asia.
“Additionally, we continue to exploit opportunities, particularly for the BAe 146, in several alternative market sectors. In two of these sectors – corporate/VIP and airtanker/aerial waterbomber - we secured new business, but the freight market for the BAe 146QT has taken longer to open up than we anticipated.”
New 2008 business announced today in alternative markets is:
• VIP/Corporate market – a new 2009 sale announced today is for a late model RJ100 Avro Business Jet that has been purchased by the Amiri Flight of Abu Dhabi which will join the existing VIP RJ70 also operated by the Amiri Flight.
2008 was an excellent year for the Avro Business Jet programme with Regional Aircraft selling an RJ100 to the Bahrain Defence Force and a BAe 146-200 to Casino Rodos of Crete. In addition, a further VIP aircraft (RJ70) was converted and delivered to Bulgaria Air to be operated on behalf of the TIM diversified industrial group.
• Airtanker/aerial waterbomber market – new business announced today is for the sale of a BAe 146-200 to Minden Air Corporation of Nevada, USA. Minden Air is a long-established and industry-leading airtanker converter and operator and will convert the aircraft this year using its own design, which should enable the aircraft to be operational for the 2010 fire season.
Regional Aircraft is interested in the potential of the BAe 146 for this highly-specialised market and believes that it has the right blend of younger aircraft from its portfolio with the optimum number of cycles to ensure that any converted aircraft will be capable of operating for the long-term. The company also sees the opportunity to work with other North American airtanker converter/operators for the conversion of the BAe 146.
A measure of the continued relevance and attraction of the BAe 146/Avro RJ is continuing overall secondary market activity. There were eleven new operators of the aircraft in 2008, building on the previous increase in 2007. Total BAe 146/Avro RJ operators now number 65 in 33 countries.
About BAE Systems
BAE Systems is the premier global 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. With approximately 100,000 employees worldwide, BAE Systems' sales exceeded £15.7 billion (US $31.4 billion) in 2007.
For further information contact:
David Dorman, BAE Systems
Tel: +44 (0) 1582 488336 Fax: +44 (0) 1582 488447
ddaviddorman@aol.com
Stephen Bethel, BAE Systems
Tel: + 44 (0) 1252 384029 Mob: + 44 (0) 7793 426328
Stephen.bethel@baesystems.com
Issued by:
BAE Systems, Farnborough, Hampshire GU14 6YU, UK
Tel: +44 (0) 1252 384719 Fax: +44 (0) 1252 383947
24hr media hotline: + 44 (0) 7801 717739
www.baesystems.com
