BAE Systems Regional Aircraft – 2010 Report

Representatives from BAE Systems all reported on a good 2010 for the company at the annual Regional Aircraft media briefing, which was held on HMS Belfast, moored in the River Thames in London.
Steve Doughty, Senior Vice-President Sales and Marketing outlined the progress made in all aircraft sales worldwide. “Although there was an increase in passengers of 8.5% and cargo by 21.9% compared to a year ago, these figures are still lower than the 2008 levels,” he said. “However, there were 1,453 aircraft ordered [in the commercial segment] with 1,120 delivered. IATA predicts a growth of 5.2% in passengers and 5.5% in cargo traffic this year – still 2008 levels – but this is expected to be exceeded by capacity available.”
Steve did add a note of caution in these figures however: “Expenses are expected to increase by 7.7% with fuel again leading the way. The global net profits of $9.1 billion are predicted at an average oil price forecast of $84 per barrel – this morning [February 1] fuel was just over $100!” IATA
“We [BAE Regional Aircraft] have had an upbeat year and placed 52 of our aircraft in 2010 compared to 44 in 2009, with seven other deals being non-BAE types,” he continued. “We have an idle fleet of 27 or 28 at present, but we expect this to drop as we are not expecting the high number of returns that we had in 2010. I wish we had more turboprops. We started 2010 with all placed and after a number of transactions, we have started 2011 with all placed too.”
New Deals
A number of new/recent sales and leases were announced including the sale of two BAe 146s – a -100 and a -300 – to Cobham Aviation Services of Australia, the sale of one Avro RJ100 to Titan Airways of the UK and one BAe 146-200 to Aerolineas Star Peru (bringing its fleet to nine). A further two BAe 146-200s were sold for conversion into aerial firefighting water bombers (Airtankers). The aircraft for Titan will be used in the Middle East on a contract for the UK’s Ministry of Defence providing a passenger and freight capability.
On the turboprop side Air National of New Zealand has bought two Jetstream 32s and Easy Fly of Colombia has completed the purchase of the four Jetstream 41s that it previously leased. Now with a fleet of eleven aircraft, the airline has secured a significant position in the Colombian domestic air travel market since it commenced operation in October 2007. A single Jetstream 41 has been sub-leased from Eastern Airways to Sky Express of Heraklion, Crete and added to an additional aircraft that the airline has acquired from a third party, the fleet has now reached five plus one Jetstream 32.
Diversifying away from BAE-produced types, the Business Development team in Asset Management won re-marketing mandates from airlines, financial institutions and leasing companies covering primarily Airbus and Boeing narrow-body and wide-body types including the sale of five McDonnell Douglas MD-83s on behalf of Avianca of Colombia, plus a Boeing 767-300ER on behalf of the Presidential Flight of Abu Dhabi. LOT Polish Airlines has chosen BAE Systems to remarket three of its fleet of five Embraer ERJ 145s plus spares.
Commenting on this business performance, Alan Fraser, Managing Director of BAE Systems Regional Aircraft, commented: “In a highly competitive market, we have shown our resilience and determination to deliver quality support, engineering and asset management services to our customers during 2010. We look forward to creating new opportunities during 2011 which promises to be an exciting year on a number of fronts.”