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News Release

AVRO BUSINESS JET OPERATORS INCREASE AS MARKET INTEREST STRENGTHENS

20 May 2008 | Ref. 162/2008

Hatfield, Hertfordshire - BAE Systems Regional Aircraft announced today at the European Business Aviation Convention & Exhibition (EBACE) in Geneva that at least six more Avro Business Jets will enter service this year with some five VIP operators.

Andy Whelan, Sales Executive for BAE Systems Regional Aircraft said today: “market interest in the Avro Business Jet which is what we call corporate versions of the BAe 146/Avro RJ family, is at an all time high, and sales of the aircraft have taken off in the past twelve months. We feel this is due to the aircraft’s exceptional operational performance, large cabin and competitive pricing.”

Mr Whelan added that there are around 23 BAe 146/Avro RJs that are in service or being converted for a variety of corporate roles – some six percent of total production of the aircraft.

The operators that are bringing the ABJ into service in 2008 are:

• Bahrain Defence Force (BDF) which took delivery in early May of an Avro RJ100 configured in a VIP layout in the forward cabin comprising two club 4 positions with tables, two ‘lay-flat’ seats and two three-seat sofas and tables. In the mid-cabin area there is a wardrobe and dressing area and a mid-cabin toilet and there are 34 airline seats in the rear cabin for support staff. This aircraft was converted by Inflite Engineering Services at London-Stansted Airport and joins two RJ85s that are already in service with the BDF;

• Hemus Air of Bulgaria, which has acquired an RJ70 for conversion into a full corporate interior for use by the airline’s parent company, the Varna-based diversified industrial group TIM, which has extensive business interests across banking, insurance, pension funds and oil and gas prospecting. The interior has been designed by Design Q of the UK and features a modern, innovative mood-lit cabin with a double club 4 executive seating and dining and divan area, with a separate 12-seat business class seating cabin for company support staff. The aircraft is being converted by Inflite Engineering Services at London Stansted Airport and delivery is planned for the third quarter of this year;

• Dubai Air Wing which has acquired two RJ85s for government duties, one of which is being converted into a full VVIP layout for delivery later this year. The second aircraft will feature normal airliner seating. Both aircraft are being converted at Avmax in Calgary, Canada. BAE Systems Regional Aircraft has won modification contracts for the major VIP upgrade aircraft;

• First Kuwaiti Trading & Contracting which has bought a BAe 146-200 which will be used as a corporate shuttle for the transport of company personnel in support of construction projects in the Middle East and Asia;

• An undisclosed European operator who has purchased an RJ70; discussions on the conversion options for this aircraft are ongoing and will be announced later. However, it is anticipated that this aircraft will be offered to the European executive charter market and as a corporate shuttle aircraft.

Andy Whelan added that BAE Systems was working on several other potential ABJ deals and explained that the market upsurge looks set to continue for the foreseeable future. “We and other sellers have found customers that appreciate the exceptional value for money represented by this aircraft, offering an airliner-sized cabin for the price of a small business jet. This large cabin offers tremendous flexibility for a range of innovative corporate layouts and young entrepreneurial owners are willing to personalise and customise the interior. The ABJ also offers unique airfield performance and remote operational capability which allows operator access to more remote locations or city centre airports”.

BAE Systems has identified three different market sectors for the Avro Business Jet These are for private use, for business/corporate and corporate shuttle applications and also for executive charter roles. There have been sales into all these sectors over the past year.

Mr Whelan stated that BAE Systems is targeting several areas for potential ABJ sales or leases. “These include VIP operators of ageing converted jet airliners, some of which are around 40 years old, high net worth individuals and entrepreneurs, large corporations with a demanding travel profile, charter companies, and airlines that have a requirement for an executive operation.”

He concluded: With immediate availability from the BAE Systems portfolio, an attractive acquisition cost, long-service life, support from the Original Equipment Manufacturer and the benefits of our connections to a cutting edge aircraft interior design house and cost-effective, quality completion centre, we are confident that the market upswing for the Avro Business Jet can only get stronger.”

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 97,500 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 
Email: ddaviddorman@aol.com

John Neilson, BAE Systems
Tel: + 44 (0) 1252 384795 Mob: + 44 (0)7802 337704
john.neilson@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


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