25 Jan 2006
BAE Systems Regional Aircraft reported today that it had secured lease business across all its portfolios and new spares by the hour and modifications business worth $320 million during 2005.
Announcing this figure today, Alan Fraser, Managing Director of Regional Aircraft stated: Despite a difficult and highly competitive regional aircraft marketplace we have done well to bring in new business in these key sectors worth over $320 million. We are continuing to keep our products flying with most of our existing customers, as well as finding new customers for our aircraft. Equally important is the high level of integrated support packages that we are now bringing to the table and which is helping us to secure new business.
Of course we have challenges ahead, but we recognise them and are developing plans to manage these. We will continue to invest in the business, to put in a high level of energy and commitment to serve our existing and new customers well, to reduce costs for our operators, as well as to develop new applications for our products and to seek new markets for our capabilities.
During 2005 Regional Aircraft secured lease transactions on its BAe 146/Avro RJ, and ATP portfolios involving 68 aircraft, business worth around $230 million.
In addition, and underscoring the complexities of managing a dynamic lease portfolio, a further 28 aircraft were the subject of other financial transactions.
The Jetstream 32 and 41 portfolios showed 38 Jetstream 32 sales and four leases and four Jetstream 41 leases business worth around $12 million.
New deals announced today and included in the 68 transactions are long-term leases with First Flight Couriers Limited (FFCL) of India for three ATP Freighters. Two Jetstream 41s were leased to Eastern Airways of the UK and there were new Jetstream 32 sales to customers in Canada, Colombia, Dominican Republic, New Zealand, the UK and USA
Highlights of the 2005 performance were the long-term commitments secured for the BAe 146/Avro RJ with both the Lufthansa Regional Group and also with SN Brussels. Airlines in the Lufthansa Regional Group leased and took delivery of a further 11 BAe 146-300s during the year (Eurowings and Air Dolomiti) and also signed sales and leaseback transactions covering three Avro RJ85s (Lufthansa Cityline).
Belgian major carrier SN Brussels signed a sale and leaseback deal with Regional Aircraft covering 23 of the airlines fleet of 26 Avro RJ85/100 jetliners. These aircraft are being acquired and then leased back in stages over the next five years.
In addition, Regional Aircraft was successful in opening up new markets for its regional jet during the year. Further penetration was made into Central/Eastern Europe with the lease of a BAe 146 to Romavia of Romania, building upon previous transactions with Albanian Airlines and Hemus Air of Bulgaria. Asian Spirit of the Philippines also became a new BAe 146 customer during the year.
Commenting on the 2005 performance, Paul Stirling, Senior Vice President Asset Management said: Last year was exceptionally busy as we secured a high number of transactions across our jet and ATP portfolios and also with good performances recorded on the Jetstream portfolio. In addition, we have started 2006 on a high with newly-signed leases with Atlantic Airlines of the UK for three ATP Freighters and with CityJet of Ireland for another BAe 146-200.
Regional Aircrafts JetSpares spares by the hour support programme, enjoyed a good year with 71 BAe 146/Avro RJs added to the programme in business worth $73 million. In addition, the modifications business secured a further $11 million of sales with orders received from 25 customers during the year.
A highlight of the JetSpares transactions were the contracts, announced today, with three airlines of the Lufthansa Regional Group for 37 aircraft to be added to the JetSpares programme. Lufthansa Cityline (18 Avro RJs), Eurowings (14 BAe 146-200/300s) and Air Dolomiti (five BAe 146-300s) are all now enrolled on to the programme.
A significant factor is that 95% of all new portfolio leasing customers for the BAe 146/Avro RJ and ATPs in 2005 have signed up for the JetSpares or MACRO support packages, emphasising the strength of Regional Aircrafts Integrated Support Packages and marketing team.
Rob Hearn, Customer Services Director, added: The market is responding positively to Regional Aircrafts improved performance and better integrated support offerings and we are delighted to have added 71 aircraft to the JetSpares programme in the face of a highly competitive marketplace. Our total focus is on reducing costs and providing better value for our operators and we shall work hard to achieve positive results in these key areas during the coming year.
About BAE SYSTEMS
BAE Systems is an international company engaged in the development, delivery, and support of advanced defence and aerospace systems in the air, on land, at sea, and in space. The Company designs, manufactures, and supports military aircraft, combat vehicles, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years and is at the forefront of innovation, working to develop the next generation of intelligent defence systems. BAE Systems has major operations across five continents and customers in some 130 countries. The Company employs over 90,000 people and generates annual sales of approximately 14.8 billion through its wholly owned and joint-venture operations.
For further information, please contact:
David Dorman, BAE Systems
Tel: +44 (0) 1582 488336 Fax: +44 (0) 1582 488447
ddaviddorman@aol.com
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