Max Kingsley-Jones/LONDON
BAE Systems is restructuring its regional airliner businesses into a single unit by folding the Asset Management (AM) remarketing arm - a standalone division - into BAE Systems Regional Aircraft, via a merger with the latter's own Toulouse-based Avro marketing and support operation.
Avro is part of Woodford, UK-based BAE Regional Aircraft, and is responsible for marketing the Avro RJ family and support of BAE's civil aircraft. Used-aircraft remarketing division AM has until now been a separate operation reporting to David Singleton, who recently become head of Alenia Marconi Systems.
AM has two divisions: a Hatfield, UK-based arm which concentrates on jets (BAe 146s and RJs) and ATP turboprops, and a Washington DC-based operation which focuses on turboprops (largely Jetstreams). The Hatfield arm did $275-million worth of business last year, with 34 new leases or lease extensions.
The reorganisation is expected to be announced by the middle of this month. It will involve the three units retaining some autonomy while reporting to a single boss, expected to be AM's chief operating officer, Trevor Hall. The new division has yet to be formally named, but will be part of the Regional Aircraft group run from Woodford by managing director Mike O'Callaghan.
Managerial appointments have not been finalised, but Stephen O'Sullivan is expected to remain at the helm of the Washington division, and Paul Sterling in Hatfield. The Toulouse situation is less clear, but Avro boss Jeff Marsh, senior vice-president sales and commercial, is expected to leave, to be replaced by Peter Connolly, vice- president sales.
Meanwhile, BAE continues to develop its updated Avro RJX, to be powered by the Honeywell AS977 turbofan. The engine's first flight was expected by 29 January.
Source: Flight International
