An early BAe 146-100 will be converted next month into a air tanker for possible use in U.S. forest fire fighting crews.

In a three-way joint venture, BAe Systems Regional Aircraft is partnering with Tronos Canada and Minden Air Corp. to develop a fleet of air tankers. Minden, based in Lake Tahoe, Nev., will convert the aircraft that Tronos is providing from its portfolio into a tanker capable for dropping 3,000 gallons of fire retardant. Minden, an experienced convertor and operator of tanker aircraft, will then work to get the BAe 146 certified for U.S. forest fighting missions, said David Taylor, BAe's Scotland- based director of business development and strategy for regional aircraft. As the original builder of the 146, BAe is performing the engineering studies on the air frame and will continue to monitor each plane once it enters its new life.

A series of crashes in 2003 and 2004 caused the U.S. Forest Service last summer to ground the bulk of its tanker fleet, which was composed of 40-year-old converted military aircraft. Minden, which operates two Lockheed P2 Neptunes, had its planes back in service by mid-summer. The Forest Service has since issued a call for operators to bring into service new air tanker aircraft. The Forest Service wants a fleet of about 35 aircraft, but diversified among at least three different aircraft types. Taylor said the diversification is so that one crash or problem will not again ground the entire fleet.

BAe sees a U.S. market of 10 to 12 converted aircraft, he said. If the conversion is certified, Taylor said, Minden will fly the first three BAe 146s and other operators may be sought to fly the other tankers. If the project progresses as anticipated, Minden's capacity to convert the planes will be maxed and Tronos will then convert some of the aircraft it already has in its portfolio. An established heavy maintenance operator for the BAe 146s, Tronos will continue to maintain the converted fleet. It will also lease converted aircraft to operators.

It will take Minden about three months to convert the plane into a tanker. Taylor said another two months may be needed to get the aircraft certified, but it is hoped that the altered plane will be ready for the height of the forest fire season.

Minden's fire-fighting pilots flew a BAe 146 through a series of nine test flights last September in Nevada, with Forest Service officials observing the test. The unconverted plane carried ballast to simulate the stress levels the 3,000-gallon load would place on the air frame. The pilots flew tests with both ballast and without ballast. "The ability to control the aircraft at low speeds in simulated retardant drops handled better than expected." Taylor said. Based on its "easy ability" to meet fairly conservative flying requirements, he said, the plane has greater flexibility that what had been expected.

"We have an aircraft that appears particularly good at this role when it's converted. The 146 has the ability to fly at very low speeds to make the drops. The pilot was able to pull away from the drop sites quickly with full power. At the transit stage, it is very attractive to get up and above the punishing air close to the ground and mountains.

Most of the planes that will be converted are among the first 100 BAes built and are about 15 years old. BAe built 221 146s.

As a tanker, Taylor said a converted plane should have at least another 10 years of service. Depending upon the age of the air frame at the time of the conversion and how many missions it flies, a plane's life expectancy could be even longer.

Looking at the conversions as a business plan, Taylor said the alteration enables a plane's owner to secure a long-term lease "with blue chip customers" instead of the short- term leases that are typical for planes of this vintage. He declined to reveal the price tag on the conversion.

BAe has been working on the conversion project for about 18 months, Taylor said. "It was not our idea. We had a couple of inquiries from American operators who had been playing with the idea. They flew a 146 simulator and saw that it was an option worth considering."

One of the potential competitors is the Bombardier [BBD] Q400. Bombardier is in the midst of modifying a 70-passenger Q400 for the French forest fire fighting fleet (CRAN, June 21, 2004). It will have a 2,640-gallon external tank fitted around the fuselage.

"The Bombardier will most likely be a challenge outside of the United States. The economics of the U.S. market are based on used aircraft rather than new converted aircraft," Taylor said.

>>Contact: Mark Taylor BAe, 44 (0) 1292 675000.<<