21 May 2003
Lufthansa has powerfully endorsed the long-term market acceptability and competitiveness of the Avro RJ regional jetliner with the decision for its Lufthansa Cityline subsidiary to continue operating its fleet of 18 RJ85s well into the second half of this decade.
This decision by the premier German carrier comes at a time of considerable market uncertainty and represents a 'minimum-risk' solution to its 80-100 seat regional jet fleet requirements.
Lufthansa's re-commitment to the Avro RJ follows similar recent endorsements by other carriers such as THY Turkish Airlines and FlyBE, both of which have contracted to continue operating Avro RJ/BAe 146 fleets.
Welcoming Lufthansa's decision, Mr Alan Fraser, Managing Director of BAE Systems Regional Aircraft said today: " This significant vote of confidence by a world-leading airline underscores our belief that the Avro RJ and BAe 146 family is going to remain highly competitive for many years to come. We believe that new generation regional jets are going to offer marginal improvement - and in some instances less capability - for a huge increase in financial risk and commitment - this at a time of considerable market uncertainty. We believe that for many airlines the best option very often is to do as Lufthansa has done and re-commit long term to the Avro RJ."
Lufthansa's decision also means a continuing revenue stream to BAE Systems Regional Aircraft for on-going spares, engineering and customer support.
To reflect the difficult and competitive market environment in Germany, Lufthansa has elected to increase capacity on its RJ85s by switching to a six-abreast layout (100 seats) from its current five-abreast (85-seat) layout.
About BAE SYSTEMS Regional Aircraft:
BAE Systems Regional Aircraft is responsible for Customer Support, Engineering and Asset Management activities covering a world-wide base of 160 customers operating over 1,100 aircraft in addition to managing a trading and leasing portfolio of some 350 aircraft.
About BAE SYSTEMS:
BAE Systems is a global systems company, innovating for a safer world. BAE Systems employs nearly100,000 people and has annual sales of around 12 billion.
The company offers a global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills. BAE Systems designs and manufacturers military aircraft, surface ships, submarines, radar, avionics, communications, electronics, guided weapon systems and a range of other defence products. BAE Systems is dedicated to making the intelligent connections needed to deliver innovative solutions.
