BAE Systems Regional Aircraft has to acquire and leaseback the remaining three wholly-owned Avro RJs in Belgian carrier Brussels Airlines’ 26-strong fleet.
BAE agreed a similar sale and leaseback deal on the other 23 Avro RJ85/100s in 2005. The acquisitions are being made over a five-year period, and BAE has so far acquired 17 of the airliners.
The final three aircraft will be acquired in 2009 and immediately be leased back. BAE says this means the RJ will remain a core part of the Brussels Airlines fleet until the middle of the next decade.
BAE has this year also signed lease extensions for Avro RJs with Sweden’s Malmö Aviation, Finnish carrier Blue1 as well as BA CityFlyer and Ireland’s CityJet. According to BAE, these transactions demonstrate that the Avro RJ will retain a strong European mainline carrier presence for many years to come.
The company believes a number of large airlines have taken the view that new regional jets offer only marginal improvement over modern used regional jets – and in some cases less operational capability.
But new jets mean considerable risk in terms of financial exposure and commitment period, especially at a time of considerable market uncertainty, specifically in the regional sector with the strong competition from the low-cost carriers.
Source: Flight International
