Karen Walker
British Aerospace Asset Management has completed its three-year strategy programme to stabilise its turboprop portfolio and will now move forward rapidly to merge the company's turboprop and jet operations.
Stephen O'Sullivan, the company's executive vice-president, turboprops, says that by the end of 1998 his group will have the number of aircraft sitting idle down to 35. With 379 aircraft in the turboprop portfolio, that will meet the company's goal of reducing the ground fleet to 10% of the total.
"At the beginning of 1996, we said we have some strategic imperatives that included getting the fleet flying with quality customers and reducing the ground fleet to 10%. That's in place now.
"We have about 60 aircraft idle now, but there are contracts and memorandums of understanding in place that mean we will reduce that number to 35 by the end of the year," he says.
The next target is to merge operationally with Asset Management's jets group. "We will be moving rapidly on this now," says O'Sullivan. "It will allow the customer to deal with one organisation and allow us to offer one-stop solutions."
Contrary
O'Sullivan insists that the 19-seat market, for which Asset Management offers the Jetstream 31, is robust. "That might be contrary to a lot of people's opinions, but we are seeing ongoing demand," he says. "By the end of 1998 we will place 50 aircraft in the market.
"Yes, there is clearly overcapacity in the overall 19-seat market, but our prospects remain good. The new 19-seat market has different challenges with the regional jet doing so well. But in some circumstances a sub-$2 million aircraft such as the Jetstream is still eminently sensible and that is where we see our main opportunity."
O'Sullivan predicts "at least one or two sizeable announcements" during the show.
"Our most encouraging marketplace now is the Australasia region, where Jetstream 31s and 32s are doing especially well," says O'Sullivan. "There are some real opportunities out there and we are hopeful of placing between 10 and 15 units over the next two or three years."
Source: Flight Daily News
