BAE Systems Aircraft Services Group is looking to build on the success of the deal it forged at the NBAA show last year, when it announced a lease agreement for 10 pre-owned Jetstream 32 twin-turboprops to Corporate Aircraft Partners (CAP). The Cartersville, Ga.-based operator has just received the sixth aircraft for its fractional-leasing program. The 19-seat commuters were converted to 10- to 12-seat configurations for the new service.
BAE Systems may have to build another 14 of its Avro RJX regional jets, despite announcing its intention to scrap the program in late November. The UK manufacturer is now seeking to renegotiate contracts with launch customers British European Airways (BEA) and Druk Air of Bhutan. The British operator placed an order for 12 RJXs and options for another eight, and Druk Air holds a firm order for two.
The U.S. Department of Justice (DoJ) raided the homes of a number of U.S.-based BAE executives in connection with allegations about corruption at BAE Systems. The DoJ also temporarily detained outgoing BAE Systems chief executive Mike Turner and a senior colleague, when they arrived at Houston Airport from the UK.
The UK’s BAE Systems has scrapped the RJX regional jet program and will shut down all future RJ production after it finishes four airplanes currently in production. BAE said the company had orders for only 14 RJXs and that an already poor market exacerbated by the events of September 11 would mean losing money on every RJ sold. The company emphasized it will continue to provide support for all customer BAE RJs.
After several years of 25-percent compound growth, UK regional British European Airlines is adopting a more measured approach to provide less unpredictable development after posting losses last year. Moves in late June to meet shareholders’ revised aims included the voluntary departure of chief executive Barry Perrott and the decision to release the Canadair RJ fleet.
Hawker Pacific, a leading general aviation sales and support company throughout Asia, is to be sold by Sweden’s Saab group to Lynton International Holdings of the UK. The deal has been agreed in principle for an undisclosed amount and should be completed over the next few months.
“Wake up, smell the coffee: the Avro Business Jet (ABJ) has arrived!” is the message from BAe Systems Regional Aircraft and two new partners announced here yesterday. As reported in Tuesday’s EBACE Convention News, the UK manufacturer has teamed with maintenance and cabin-interiors specialists to provide a one-stop shop for prospective customers looking for a large-capacity corporate jet.
This morning, BAE Systems Regional Aircraft (Booth No. 2055) plans to reveal teaming arrangements with a completion center and a design house for the Avro Business Jet (ABJ), a corporate version of its BAe 146/Avro RJ regional-quadjet, for which it claims “all-time high” market interest. “Sales of the aircraft have taken off in the past twelve months,” said sales executive Andy Whelan.
BAE Systems Regional Aircraft has completed four months of test flights in its new Avro RJX85, leaving officials “very confident” of meeting, if not exceeding, the 15- to 20-percent-enhanced fuel burn and other performance-improvement targets set for the 80- to 112-seat quad-jet.
Regional-aircraft manufacturers face the prospect of increased financial risk in coming years, despite having been able to reduce sales costs since the mid-1990s, according to Moody’s Investor Service. As the economic recession continues, the New York-based credit research agency said such companies might not escape global requirements for more financial assistance to operators.