At a London media briefing, BAE Systems Regional Aircraft reported $350 million in lease and support business last year as well as the launch for two new freighter conversion programs and an update for the PRNAV solution for the BAe 146/Avro RJ. The sales included spares-by-the-hour contracts as well as continuing spares sales and modifications.

The company announced the re-launch of the 10- to 12-ton BAe 146QT (Quite Trader) freighter conversion in a program expected to be completed shortly with Romanian aerospace companies. It also announced the launch of the 3.5 ton Jetstream 41 E-Class freighter as well as a 150% increase in the manufacture of the ATP Large Freight Door installation kits from Romaero.

Regional Aircraft also announced a major upgrade modification of the Flight Management System on the BAe 146/Avro RJ. The selection of the Honeywell GNS-XLS system will allow compliance for Precision Area Navigation (PRNAV) operations later in 2007.

"Despite a challenging marketplace Regional Aircraft continues to perform well to bring in new business worth $350 million," Managing Director Alan Fraser stated. "Our aircraft continue to find favor with new customers, while we have been successful in retaining key operators for the longer term by increasing their fleets. We are also entering new markets to extend the product life cycle as part of our proactive portfolio management." He cited long-term commitments secured for the BAe 146/Avro RJ from existing customers such as Lufthansa CityLine and Eurowings.

During 2006 Regional Aircraft secured lease transactions on its BAe 146/Avro RJ and ATP portfolios involving 81 aircraft, business worth $185 million while the Jetstream 32 and 41 portfolios showed 50 sales and leases, worth a further $24 million. The company also customized and re-delivered 27 BAe 146/Avro RJ, ATP and Jetstream 41 aircraft through 12 different completion centers.

The company reported:

• Lease of 10 Avro RJ85s for operation by CityJet of Ireland, wholly-owned subsidiary of Air France, as part of a major fleet re-equipment program.
• MDLR Airlines of India leased two Avro RJ70s
• National Jet Systems of Australia extended leases on four BAe 146s
• SATA Air Azores extended leases on two ATP regional turboprops.
• Lease extension of one Jetstream 41 with South African Airlink
• Sale of two Jetstream 41s to Corporate Flight Management in the US
• Sale and lease of seven Jetstream 32s to International Air Parts of Australia as well as new Jetstream 32 sales and leases to customers in the USA, Dominican Republic, New Zealand and Venezuela
• Six new customers covering the BAe 146/Avro RJ, ATP passenger turboprop and Jetstream 41

Highlights of the 2006 portfolio management performance included the ATP Freighter program which secured further leases from lead operator West Air Sweden as well as business from new customers Atlantic Airlines, First Flight Couriers and Magic Bird.

Regional Aircraft recorded continued success in its JetSpares and MACRO spares-by-the-hour support programs with $50 million of new business secured during the year. Significantly all the new BAe 146/Avro RJ and ATP Freighter leasing customers also selected these support packages.

The company also recorded $74 million of continuing spares sales across the year, while the modifications business secured some $19 million of sales from over 20 customers including major conversion and customization upgrades with CityJet, Swiss and the Amiri Flight/Royal Jet.