Home' Asian Aviation : AAV April 2010 Contents 20 AsianAviation | APRIL 2010
BAE Systems Regional Aircraft
(BAERA) said in February that it
will become an engineering partner
in Japan's new Mitsubishi Regional
Jet (MRJ) programme.
At the same time, the company said
its asset-management (AM) team placed 44 aircra
in a "challenging" market last year, when it also won
mandates from third parties to sell -- or otherwise place
-- 41 aircra , plus one machine le over from 2008.
BAERA said it is particularly pleased with
the agreement between its engineering team and
Mitsubishi Aircraft to provide design-integration
and certi cation ser vices for the MRJ's propulsion
systems, based around twin Pratt & Whitney (P&W)
PW1000G geared-turbofan engines.
e UK company's plant in Prestwick, Scotland
will provide engineers for a number of work packages
that include auxiliary power units, engine pylons, fuel
systems, nacelles, and powerplants. e 70- to 90-
seat regional jet is scheduled to y in 2012, entering
ser vice two years later. BAERA also has liaison-support
personnel at Mitsubishi Aircra in Nagoya, Japan, and
at P&W in Hartford, USA.
Alan Fraser, managing director of BAERA, says
the contract follows several years of discussions with
"I am delighted we have an opportunity to
contribute to this programme," he says. "[We] have a
strong track record and this contract demonstrates the
trust Mitsubishi has in our people. is will allow us
to [leverage] our existing capabilities on to the next
generation of aircra . We hope this will be a rst step
in a developing relationship."Mitsubishi Aircra 's
system-design Vice-President Yukihiko Nakata says
the Japanese manufacturer "would like to have a
strong and rm position in the future RJ market by
taking advantage of [BAERA's] wide experience and
knowledge", adding that the Japanese manufacturer
expects "their further co-operation continuously".
Among BAERA lease placements in 2009 were two
BAe Avro Regional Jets (ARJs) for Cobham Aviation
Ser vices Australia (formerly National Jet Ser vice),
which provides a regular shuttle ser vice between Perth
and Barrow Island for Chevron Australia's operations,
including the Greater Gorgon offshore gas-field
project. In addition, a long-term lease extension has
been agreed for a BAe 146-300 already operated by
Cobham on the route.
e rst of the two RJ100s was delivered to Cobham
in early February and is con gured in a 99-seat layout.
e second RJ100 is scheduled to be delivered next
year to join a dedicated Barrow Island shuttle eet
that eventually will comprise two RJ100s and three
BAe 146s. Last year, Cobham acquired three 146QT
freighters that it previously had leased.
Indonesia is continuing to prove a valuable market
for the placement of BAe 146s, last year including an
ex-West Air 146QT which has gone to Nusantara
Air Charter. One Jetstream 41 third-party sale was
concluded on behalf of Mitsubishi UFJ.
BAERA support activities su ered a drop in spares
business as airlines consolidated stocks. " e future
will continue to present challenges, but we take
con dence from our performance in 2009, having
restructured our business," says BAERA's Fraser.
Of 44 machines placed last year, 30 were BAe 146/
ARJ regional jets. Managing 40 percent of the available
global eet, the company claims to have completed 60
percent of recorded deals involving the type. Some 23
of the aircra were placed in the passenger market,
three were sold as Avro Business Jets (ABJs), three
were sold into the air cargo sector and the last entered
military ser vice. is has le BAERA with 24 more
idle 146/ARJs in its portfolio.
e 14 remaining aircra placed last year comprised
11 ATP turboprop airliners (eight freighters and three
passenger versions) and three, smaller Jetstream 32
regional turboprops. e AM team also completed
25 spare-engine deals and short-term lease extensions.
Having enlarged AM's business-development (BD)
team since late 2008, BAERA took on re-marketing
mandates from airlines, nancial institutions, and
lessors. ese included a contract covering 13 Boeing
757-300 aircra for sale and lease back to investors
on behalf of German charter carrier Condor, business
which BAERA believes "re ects increasing recognition
[by the aviation nancial community] of the capability
and depth" of its third-party services.
Most of the mandates cover sale or lease of single- or
twin-aisle Airbus and Boeing types and BAE regional
aircra . Eight of the aircra were placed during 2009
and this year began with 28 available (a er six had
been withdrawn by owners who changed their plans).
"Execution continues to be di cult in the current
market environment," according to BAERA AM sales
and marketing vice-president Steven Doughty.
Despite a downturn in continuing spares sales and
modi cations business, BAeRA reports unquanti ed
"further" success for its spares-by-the-hour packages,
with almost 150 aircra covered and further contracts
being negotiated. "More than 90 percent of customers
have taken up [our] continued air worthiness charge
programme," Doughty says.
The engineering team increased third-party
revenue by 20 percent to cover orders for work
involving several civil and military aircra models,
the latest being the MRJ. Some 25 percent of
engineering revenue is now derived from non-BAE
Still, BAERA is not resting on its laurels. A range
of BD activities is under way "to identify potential
new opportunities to leverage the skills of support
and engineering teams". ●
Ian Goold / London
BAE Regional teams
with Mitsubishi on MRJ
BAE will provide
services for the
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