Outlines Initiatives For Improved Service On Avro RJ, Jetstream
A range of new contract wins across its Regional Aircraft
Support and Engineering businesses was announced by BAE Systems on
Friday. The regional jet maker also outlined new initiatives for
improved support offerings.
“Our business continues to deliver on its financial
targets and is cash generative”, said Managing Director, Alan
Fraser. “These new contracts and further initiatives to help
our operators, underline our strong value proposition which we
offer. Our market-responsive support strategies are now appealing
increasingly to both well-established and new operators of our
aircraft on a world-wide basis. We have re-shaped our engineering
business and geared it for growth. The skills, expertise and total
aircraft design capability of our team are recognised by leading
manufacturers worldwide as being of substantial benefit to them,
resulting in a steady flow of new business.”
Two new and substantial multi-million dollar
rate-per-flying-hour spares support contracts were announced today.
Swiss International Airlines has signed a five-year JetSpares
contract covering its fleet of 20 Avro RJ100 regional jetliners,
while leading European cargo airline, West Atlantic has concluded a
three-year MACRO deal for all 44 ATP turboprops in its fleet.
JetSpares and MACRO are rate-per-flying-hour programs covering
the BAe 146/Avro RJ and the turboprop fleet respectively. Both
programs are designed to allow airlines to concentrate on their
flight operations while BAE Systems Regional Aircraft takes care of
spares inventory, logistics and repairs. The priority is to keep
the airline’s business running smoothly by providing a
first-class support service.
Its engineering business has also benefitted from a new growth
strategy, and building upon its success with Mitsubishi Aircraft
Corporation of Japan, it has secured further design engineering
work from four additional new Original Equipment Manufacturer (OEM)
customers. Over the past two years this new strategy has meant that
the proportion of third-party engineering revenues from outside BAE
Systems has grown from 35 per cent in 2010 to an estimated 92
percent this year.
BAE Systems has also won spares support business from three new
BAe 146/Avro RJ operators – Eznis Airways of Mongolia, North
Cariboo Air of Canada and Dragon Air Management of South Africa
– for its new ‘Parts Plus’ spares delivery
service that is designed to appeal, initially, to new operators of
the aircraft. Under ‘Parts Plus’ BAE Systems will offer
fixed pricing until the end of 2013 with an availability guarantee
on a steadily increasing range of spare parts.
BAE ATP Turboprop
Building on its regionalized support strategy that has been
developed to support the growing use of its aircraft in
further-afield territories, the company also announced that it has
reached agreement with leading global logistics company Kuehne+
Nagel (K+N) to place a quantity of BAe 146/Avro RJ consumable and
rotable spares into K&N’s existing Miami warehouse
facility to better serve existing and new operators of these
aircraft in the Latin American market. This warehouse will also be
used to service the North American market where a number of new
operators of the BAe 146/Avro RJ are emerging.
Locating spares close to operators has also led to the decision
by BAE Systems to place an extra consignment stock of spares for
the Avro RJ close to London City Airport this summer for the
duration of the Olympic Games. To be housed in a CityJet storage
facility, the extra spares will be available to all Avro RJ
operators serving the airport during the busy Olympic period and so
help maintain a reliable service schedule.
The company also revealed a new support initiative that will
benefit its Jetstream turboprop operators. It has reached agreement
with Propulsion International of California for the joint marketing
and sales of a Honeywell TPE331 engine rate-per-flying hour support
program for the Jetstream family of aircraft.
BAE Systems also announced a new agreement to extend its support
solutions for the BAe 146/Avro RJ with Meggitt Aircraft Braking
Systems of Coventry, UK under which it will now offer wheels and
brakes maintenance support for new operators of the BAe 146/Avro
Building upon its established two agreements for engineering
design, development and certification support to Mitsubishi
Aircraft Corporation for the Mitsubishi Regional Jet (MRJ) program,
BAE Systems also announced a new contract from Mitsubishi to
manufacture, test and supply flight test equipment for the MRJ.
This third contract from the Japanese company takes advantage of
BAE Systems’ managed solutions offering which combines both
its engineering and supply chain skills.
Another new contract win that combines design, planning,
technical support, supply chain and project management skills has
been won from South African carrier, SA Airlink, for the major
repair of an Avro RJ85 that was involved in a nose landing gear
incident in early November 2011. The contract also builds upon the
company’s reputation for excellence with its aircraft repair