Embattled BAE Systems suffered further blows as 2002 closed, with Honeywell issuing a $20 million lawsuit over the cancellation of the Avro RJX regional jet project and further delays to BAE's sell-off of its share in the Astrium space joint venture.
Honeywell filed two civil writs at the UK High Court in late December for damages it incurred over the RJX programme. The US systems supplier, which was a risk-sharing partner in the programme, was producing the 7,000lb (30kN)-thrust AS977 derivative of the AS900 turbofan for the aircraft. However, BAE cancelled the programme in November 2001 in the wake of the US terrorist attacks, saying the future of the aircraft was "unviable".
Honeywell, which was also to supply avionics including navigational systems, wrote off $100 million from its 2001 fourth quarter earnings following the programme's termination. BAE declines to comment on the litigation.
Meanwhile, BAE had expected to conclude the sale of its 27.5% shareholding in Astrium by the end of the year to partner EADS but has failed to agree exit terms. Discussions will resume in 2003.
Source: Flight International
