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News Release

BAE Systems leases two BAe 146s to Serbian operator - Centavia

25 May 2006

BAE Systems Regional Aircraft has leased two BAe 146-200 regional jetliners to newly-established Serbian carrier Centavia (Central European Aviation). The Belgrade-based airline will take delivery of the first aircraft (msn E2210) this month, while the second aircraft will follow in July.

Both aircraft are to be configured in a 98-seat layout with comfortable leather seats and will be used from this summer on routes to Egypt, Turkey, Greece and Spain. From the autumn, Centavia will use the aircraft to operate regional scheduled services to Basle, Bergamo, Bratislava, Budapest, Cologne and Hamburg.

Centavia is led by Mr. Predrag Vujovic, former Chief Executive of JAT, Serbias national carrier. Mr Vujovic said today: We consider this as the beginning of a future successful co-operation between Centavia and BAE Systems which will enable us to enter the Balkan market as a regional operator. With the anticipated success of our project, we look forward to expanding our fleet with the type over the next few years.

Centavia becomes the fourth Central/Eastern European airline to select the BAe 146 as the airline market in that part of Europe starts to develop a more comprehensive regional route structure in line with growing economic and political development. Other carriers that operate the BAe 146 are Albanian Airlines, Hemus Air of Bulgaria and Romavia of Romania.

Since the beginning of the year, BAE Systems Regional Aircrafts asset management leasing team has secured business with five new customers, including three start-up carriers. Two of these are new customers for the BAe 146/Avro RJ (FaroeJet and Centavia both start-ups). New ATP Freighter customers are Atlantic Airlines and MagicBird Airlines (start-up), while Yeti Airlines of Nepal has been secured as a new customer for the Jetstream 41 regional turboprop.

Paul Stirling, Senior Vice President Asset Management said today: We are delighted to welcome Centavia as a new member of the growing European customer base for the BAe 146/Avro RJ family. Despite a tough market Regional Aircrafts airliner portfolio is proving to be highly attractive, allowing us to secure new customers for all our products in the first five months of this year.

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 the premier transatlantic 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 more than 100,000 employees worldwide, BAE Systems sales exceeded GB 15.4 billion (US$28 billion) in 2005.

For further information, please contact:


David Dorman, BAE Systems
Tel: +44 (0) 1582 488336 Fax: +44 (0) 1582 488447 ddaviddorman@aol.com

www.regional-services.com

Ref: 124/2006


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