23 Jan 2008 | Ref. 017/2008
Prestwick, Scotland. BAE Systems Regional Aircraft has enjoyed continuing success for its JetSpares and MACRO ‘spares by the hour’ customised spares support packages, winning new business worth over $75 million during the year.
The biggest contract, which was signed during the last few days of the year, was with Ireland’s CityJet, the wholly-owned Air France subsidiary. This JetSpares contract renewal covers all 23 Avro RJ85s in the airline’s fleet, together with interim BAe 146 coverage, and is valid for three years.
Contract renewals are a significant endorsement by customers of the value of the ‘spares by the hour’ programmes and Regional Aircraft also secured extension business with Titan Airways of the UK across four BAe 146s for a four-year term and with Blue 1 of Finland for five Avro RJs for a five-year period.
Significantly, every new portfolio jet leasing customer won by Regional Aircraft during 2007 also contracted for its JetSpares programme. This is a powerful endorsement of the value of Regional Aircraft’s capability to offer both leasing and integrated support packages. New business won with lease portfolio customers during the year included deals with MDLR Airlines of India, South African Airlink and Quest Mexicana.
However, the commercial team also targets new business opportunities to secure non- lease portfolio aircraft and won a new contract with Atlantic Airways of the Faroe Islands covering its Avro RJ fleet expansion.
Announcing this new business today, Graham Smith, Commercial Director of Regional Aircraft added: “We are delighted with the market reception and continued acceptance of our customised spares support programmes and we are now firmly established as one of the most experienced players in this specialist market. In addition, we put a lot of effort into securing new business with existing customers by enrolling additional aircraft on to the programmes. In this area we won additional business with a number of airlines such as Eurowings of Germany and Hemus Air of Bulgaria for JetSpares and with Atlantic Airways of the UK to cover additional ATP Freighters on MACRO.”
Both JetSpares (for the BAe 146/Avro RJ) and MACRO (for turboprop aircraft) are individually customised support programmes, designed to allow an airline to concentrate on its operations while BAE Systems takes care of spares inventory, logistics and repairs. The priority is to keep the airline’s business running smoothly by providing a first-class support service at a fixed monthly cost.
Some 180 aircraft are enrolled on to these support programmes across the world with critical spares and consumables held on consignment at the customers’ bases. In addition $100 million of ‘ring-fenced’ spares are held at the Weybridge Spares Logistics Centre for ‘spares by the hour’ customers.
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 96,000 employees worldwide, BAE Systems' sales exceeded £15 billion (US $27 billion) in 2006*.
*On a pro forma basis, assuming BAE Systems had owned Armor Holdings Inc for the whole of 2006"
For further information contact:
David Dorman ,BAE Systems
Tel: +44 (0) 1582 488336 Fax: +44 (0) 1582 488447
Email: ddaviddorman@aol.com
Guy Douglas, BAE Systems
Tel: +44 (0) 1252 384841 Mob: +44 (0)7736 810490
guy.douglas@baesystems.com
Issued by:
BAE Systems, Farnborough, Hampshire GU14 6YU, UK
Tel: +44 (0) 1252 384605 Fax: +44 (0) 1252 383947
24hr media hotline: + 44 (0) 7801 717739
