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Fri, May 26, 2006

BAE Systems Leases Two BAE 146s To Serbia's Centavia

Joins Other Eastern European Regional Carriers Flying 146s

BAE Systems Regional Aircraft announced this week it has leased two BAe 146-200 regional jetliners to newly-established Serbian carrier Centavia (short for Central European Aviation). The Belgrade-based airline will take delivery of the first aircraft this month, while the second aircraft will follow in July.

Both aircraft are to be configured in a 98-seat layout with comfortable leather seats and will be used from this summer on routes to Egypt, Turkey, Greece and Spain. Beginning in fall 2006, Centavia will use the aircraft to operate regional scheduled services to Basle, Bergamo, Bratislava, Budapest, Cologne and Hamburg.

"We consider this as the beginning of a future successful co-operation between Centavia and BAE Systems which will enable us to enter the Balkan market as a regional operator," said Centavia president Predrag Vujovic, who is the former Chief Executive of Serbian national carrier JAT. "With the anticipated success of our project, we look forward to expanding our fleet with the type over the next few years."

Centavia becomes the fourth Central/Eastern European airline to select the BAe 146 as the airline market in that part of Europe starts to develop a more comprehensive regional route structure in line with growing economic and political development. Other carriers that operate the BAe 146 are Albanian Airlines, Hemus Air of Bulgaria and Romavia of Romania.

Since the beginning of the year, BAE Systems Regional Aircraft’s asset management leasing team has secured business with five new customers, including three start-up carriers. Two of these are new airlines -- FaroeJet, and Centavia. New ATP Freighter customers are Atlantic Airlines and start-up MagicBird Airlines, while Yeti Airlines of Nepal has been secured as a new customer for the Jetstream 41 regional turboprop.

"We are delighted to welcome Centavia as a new member of the growing European customer base for the BAe 146/Avro RJ family," said Paul Stirling, Senior Vice President Asset Management for BAE Regional. "Despite a tough market Regional Aircraft's airliner portfolio is proving to be highly attractive, allowing us to secure new customers for all our products in the first five months of this year."

FMI: www.baesystems.com, www.centavia.com

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