12 Feb 2001
Ref: 016/2001
The regional aircraft business of BAE Systems enjoyed a strong year in 2000 with total new business worth around US$800 million.
Business won comprised new aircraft sales and options of $525 million and pre-owned aircraft leases and aircraft sales valued at some $165 million. The balance of just over $110 million came from customer support, training and ongoing spares sales activities.
This strong showing provides a secure platform for the launch of the newly formed BAE Systems Aircraft Services Group. The diversity of business opportunities has been highlighted by last year’s successes. A new customer-team approach to the Group’s regional aircraft business is planned to build on these results and
grow the business dramatically in the coming years.
Major highlights of the year 2000 included the formal launch of the new Avro RJX programme with first orders and options received from Druk Air of Bhutan and CityFlyer Express. New business was also won for the existing RJ85 and RJ100.
A total of 27 new leases and lease extensions during the year were won on the managed fleet of BAe 146/Avro RJ jetliners and ATP turboprop aircraft. Total value of this business was nearly $105 million at outturn values. In addition, three BAe 146s and two ATPs were sold during the year for just under $30 million.
Among the lease extensions were two significant airline re-commitments secured in the last weeks of the year and announced today. Air Canada extended leases on 10 BAe 146-200s that are operated by its regional connector subsidiary, Air Canada Regional, Inc. In Australia, the all freight airline Australian air Express extended leases on its three BAe 146QTs (E1002, E3194, E3198).
The 19-seat Jetstream 32 aircraft accounted for $30 million worth of business including both new leases and lease extensions. Some 30 J32s were placed with new and repeat customers worldwide.
The unique expertise gained within BAE Systems in successfully pioneering its Financial Risk Insurance Programme in respect of its leased aircraft portfolio 18 months ago, resulted in a major role to project manage a similar programme on behalf of Saab AB. This was successfully completed in late November.
Several new business ventures were launched by BAE Systems Regional Aircraft during 2000. The most significant was Trading and Services which has been formed to offer the world-class skills homed by the asset management team over the past seven years to a wider aviation market. During the year Trading and Services successfully brokered a number of aircraft transactions on behalf of other clients for ATPs, BAe 146s and for the Jetstream family.
The ATP freighter was also launched as a jointly funded programme between West Air AB of Sweden and BAE Systems. This followed the purchase by West Air of six ATPs and an agreement whereby the manufacturer has responsibility for the freight door installation service bulletin, including assistance necessary to obtain the Certificate of Airworthiness. In turn, West Air is responsible for manufacture of the freight door and associated parts, aircraft modification and door installation. The first ATP freighter will be ready at the end of this year.
