UK broker Air Charter Travel has been forced to cancel a series of corporate shuttle bookings for the rest of this year as a result of BAE Systems' flight department having its operating licence withdrawn. The manufacturer is likely to be classified as a foreign company in the coming weeks, bringing the private charter joint venture with London Gatwick airport-based Air Charter to a close after seven months.
As part of a wider restructuring, BAE Systems Corporate Air Travel has been chartering out the weekend downtime of its two 66-seat BAE 146 employee shuttles since November (Flight International, 26 November-2 December 2002). The UK Civil Aviation Authority is understood to be on the verge of withdrawing the company's public transport operating certificate, which can only be issued to companies with a majority of shareholders from the European Union, Iceland, Norway and Switzerland, known as the European Economic Area.
The CAA says BAE Systems Corporate Air Travel "holds a valid European Economic Area operating licence", but that it is in discussion about future validity. From 1 July, the airframer will only be permitted to transport its own personnel, in case its foreign shareholding rises above 50%, says BAE Systems Corporate Air Travel managing director Nobby Clark.
The flight department is looking at several options for future operation, he adds, including outsourcing some or all the aircraft operation to a third party, or continuing as a private operation, which would require providing the CAA with a foreign companies bond to guarantee fees and charges in the case of bankruptcy. A decision on the future structure of the company will be taken by the end of July, Clark says.
Source: Flight International
