For the first time, worldwide, the number of regional jets advertised for sale worldwide in October (in the 30- to 50-seat sector) out-numbered turboprops, said Saab Aircraft Leasing President and CEO Michael Magnusson. Regional jets reached their peak four years ago, he added, while the turboprop market is still stabilizing. Even in the US market, the number of 50-seat RJs is down 10 percent, he said, he sees Russia as a particularly strong market for future growth now that the government decided recently to remove import taxes on aircraft up to 50 seats.
While the age of the independent regional may be gone in the U.S. Magnusson said the situation is far different in Europe where there are many independent regionals still plying the skies. Speaking before the European Regions Airline Association in Manchester, he cited Saab’s own customers including Eastern Airways, Loganair, Carpatair of Romania, OLT of Germany, Golden Air of Sweden and, in Australia, Rex.
“With 69 operators in 36 countries we have a well dispersed fleet,” he said. “This is important as it means we are not exposed to any individual markets,” he said. “We have also been careful over the years. We have a strong credit department and healthy customers who keep up their payments.”
He reported a quiet year for Saab Aircraft Leasing, with little movement on the Saab 340 and 2000 fleets. Magnusson said April was its busiest month with Sweden’s Air Express extending leases on two Saab 2000s; Eastern Airways, UK, signing for two more 2000s and Western Air of the Bahamas purchasing its leased 340A. In addition, in August, Murray Aviation in the U.S. renewed its Saab 340A lease.
Magnusson announced at ERA that Loganair of Scotland, now a Flybe franchise airline, purchased a Saab 340A, which it will dedicate to cargo operations. This takes the number of Saab 340s operating in the cargo role to 38 around the world and, by year end, Rex will introduce the Saab cargoliner into its operations. Saab is further modifying the cargo conversion to include more options, including a reinforced floor. Field Aviation of Canada is partnering Saab on this program.
“As fuel prices go up, the demand for turboprops increases,” said Magnusson. “Furthermore, the market for these used aircraft will be less affected by the recession, owing to their lower operating and capital costs. All 58 Saab 2000s are now flying and there are few Saab 340As and Bs from the worldwide 414-aircraft fleet becoming available. Saab Aircraft Leasing is currently remarketing two Saab 340As for AeroCentury, plus two 340Bs for TurboLease, both US-based.