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Monday, October 20, 2008

Aircraft Market Watch – Embraer, Copa, BAE Systems


African Carrier Takes ERJ 190
Embraer and LAM - Linhas Aereas de Mocambique – signed a contract for two ERJ 190 aircraft, plus two purchase rights for the same model. The total value of the deal is $75 million, at list price, and could double, if all purchase rights are exercised.
"We welcome LAM, the newest Embraer operator on the African continent, who raises our E-Jets customer base to the outstanding mark of fifty airlines," said Mauro Kern, executive vice president, Airline Market. "It is a privilege to have our E-Jets chosen as a tool for modernizing LAM's fleet. The company will expand its presence in the domestic segment and in the southern region of Africa, and will be able to offer its customers advanced, reliable, and highly comfortable service."
LAM's ERJ 190 will be configured with a dual class layout, featuring nine seats in first class and 84 in Economy. The first delivery is scheduled for the second half of 2009, and the aircraft will be based in the nation's capital, Maputo.
"When we decided to modernize our fleet of short and medium-haul aircraft, as well as to reduce operating costs, the focus was on adapting our capacity to market demands," said Jose Ricardo Viegas, chair of LAM's Board of Directors. "Our objective was to replace the larger aircraft in our fleet with newer and smaller ones, thus enabling us to increase frequencies, open new routes, and better serve our customers. The ERJ 190 is precisely the model we needed."
The E-Jets will replace older narrow-body jets operated by LAM for domestic routes, as well as for regional flights, mainly to Angola, Kenya, and South Africa.

COPA Takes 14th ERJ 190
Copa Airlines, a subsidiary of Copa Holdings, S.A. took delivery of its 14th Embraer 190 aircraft. The acquisition brings the total number of aircraft in the Panamanian airline's fleet to 41.
The Embraer 190 has seating for 94 passengers, with 10 in Business Class (Clase Ejecutiva) and 84 in coach. The coach cabin has two seats on each side of the aisle, with no middle seat. The Embraer 190 is an important part of Copa's fleet renewal plan, which includes the acquisition of modern aircraft equipped with features to reduce greenhouse gas emissions. Copa has a companywide commitment to environmental responsibility.
Copa Airlines' fleet continues to be one of the youngest in the industry with an average age of 4.1 years. In addition to its 14 Embraer aircraft, Copa operates 27 Boeing 737 Next Generation jets.

BAE Places All Jetstreams
BAE Systems Regional Aircraft’s Asset Management team said its new Jetstream sales have resulted in a zero idle fleet in both its 19-seat Jetstream 32 and 29-seat Jetstream 41 portfolios.
The news came at a time when it secured an exclusive remarketing mandate from Eastern Airways of the UK for the re-sale of two Jetstream 41s (msns 41015 and 41019) and a Jetstream 32 (msn 970). Eastern Airways took advantage of the strong market for turboprops, and the Jetstream 41 in particular, by releasing for sale two aircraft that they bought speculatively from Atlantic Coast Airlines.
“We have achieved a zero idle fleet for the Jetstream 32 and Jetstream 41 following a highly successful portfolio strategy that has placed hundreds of aircraft over the years,” said Steve Doughty, vice president sales & marketing for asset management. “However, as the new remarketing mandate from Eastern Airways shows, we remain very active in the regional turboprop market and are the acknowledged experts in the 19/29-seat niche. We anticipate strong market interest as these aircraft represent exceptional value for money.”
It also announced:
Yeti Airlines of Nepal, which has purchased a further Jetstream 41 (msn 40185) from Regional Aircraft and also bought the four existing portfolio Jetstream 41s in its fleet (msn 41066, 41072, 41077 and 41078). The airline also purchased an additional aircraft from Eastern Airways of the UK to bring its total fleet to six aircraft. This privately-owned airline uses its Jetstream 41s on Everest sight-seeing mountain flights and for regional flights to destinations across the country from the capital Kathmandu.
Corporate Flight Management (CFM) of Smryna, Tennessee, which has purchased four Jetstream 41s (msns 41042, 41043, 41063 and 41081). In addition, CFM has also bought the final Jetstream 32 (msn 936) that was available on the portfolio.