News Archive 1998

This page contains an archive of news items relating to the BAe 146 and Avro RJ regional jetliners, from January to December 1998.

Index Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

January 1998

BAe-AMJ has record year
BAe-AMJ achieved sales and lease transactions valued at close to US$290 million (£180 million) during 1997. AMJ continued its policy of selective disposals of aircraft from the portfolio, selling 12 aircraft during the year, for just over US$105 million. Sales were made to Air Atlantic, British Regional Airlines, Eurowings, Jersey European, and Titan, the ANZ Investment Bank (two aircraft on lease to QANTAS), and Moncrief Oil of Texas (for corporate use). These sales reduced BAe-AMJ's portfolio to 97 aircraft. Two additional sale transactions are expected to be announced shortly. AMJ also continued its strategy of placing aircraft on long-term leases with strong regional operators. A total of 31 lease transactions worth nearly $185 million were completed during the year, to customers such as Aer Lingus Commuter, Air Wisconsin, British Regional Airlines, Eurowings, and Jersey European. Of these, 19 were new leases and 12 were lease extensions.

Air UK becomes KLM uk
Air UK adopted the name KLM uk on 30 January, to stress its close operational and marketing relationship with parent KLM. All Air UK aircraft, including its 10 BAe 146-300s and single BAe 146-100, are being repainted in a new livery similar to that of KLM. BAe 146-300 G-UKRC was the first aircraft repainted.

100th Avro RJ delivered
The 100th Avro RJ, E2321 N509XJ, was delivered to Mesaba for operation on behalf of Northwest Jet Airlink in a ceremony at Woodford on 30 January. The total of 100 RJs includes 10 RJ70s, 52 RJ85s, and 38 RJ100s. N509XJ is the ninth RJ85 to be delivered to Mesaba. When all deliveries are complete, Mesaba will have the world's largest fleet of Avro RJs, with 36 examples.

February 1998

Thai BAe 146s withdrawn from service
Thai Airways International has withdrawn its five BAe 146-300s from service; the aircraft were seen parked at the airline's Bangkok base in late February. They will shortly be delivered to Debonair, who is anxiously awaiting them to expand its services. Debonair was due to receive the BAe 146s in late 1997, but Thai retained them longer than planned due to delayed deliveries of new 737-400s from Boeing.

BAe considers Avro RJ improvements
Jeff Marsh, the Avro RJ program's marketing director, indicated in an interview at the Asian Aerospace show in Singapore that BAe was considering several options to keep the Avro RJ family competitive against Boeing's planned 717 regional jet (formerly the McDonnell Douglas MD-95), deliveries of which are scheduled to begin in 1999. BAe is assessing new engines from AlliedSignal and Pratt & Whitney and looking for ways to reduce production costs, although earlier cost-cutting has already brought them down substantially. Boeing is reported to have reduced the list price of the 717 to about US$19 million, from the US$32 million that McDonnell Douglas was asking for the MD-95, substantially undercutting the RJ100's list price of about US$28 million. A decision on any improvement program will be made later this year.

March 1998

BAe-AMJ announces several transactions
BAe-AMJ has announced several sales, lease extensions, and new leases. The ANZ Investment Bank purchased a BAe 146-200 it had been leasing (the aircraft continues on lease to Ansett) and Formula One Administration purchased a BAe 146-100. New leases were arranged with Aer Lingus, who will add two former Atlantic Southeast BAe 146-200s to its fleet of five 146-300s, and with Malmö Aviation for an additional BAe 146-200, bringing its BAe 146 fleet to 11. Australian Air Express extended to 2003 the leases on two BAe 146-300QTs and one BAe 146-100QT which are currently operated on its behalf by National Jet Systems. Meanwhile, Jersey European took delivery of a BAe 146-200 it had previously agreed to lease, bringing its BAe 146 fleet to 12.

BAe-AMJ arranges for technical upgrades
BAe-AMJ has finalised an agreement with Honeywell Inc for its TCAS 2000 system to be the preferred Traffic Alert and Collision Avoidance System (TCAS) installation on the AMJ BAe 146 fleet. TCAS is mandated for implementation in Europe and Australia -- home of many AMJ customers -- by 1 January 2000. AMJ has also funded a second-phase design and development program to certify the installation of satellite-based navigation systems for the EFIS-equipped versions of the BAe 146. AMJ is offering a GNS-XLS upgrade to the existing GNS-X system already featured as a standard fit on EFIS-equipped BAe 146s. Over 20 AMJ EFIS-equipped BAe 146s are potentially involved in this second phase.

New Turkish airline orders Avro RJ100s
Park Express, a new Turkish regional airline, announced on 23 March that it had ordered five Avro RJ100s. Park Express is a wholly owned subsidiary of Park Holdings, a Turkish Conglomerate operating in the textile, energy, and transportation sectors (its holding include Havas, Turkey's principal airport ground handling company). Mr. Atilla Celebi, former Chairman and CEO of Turkish Airlines, has been recruited to set up Park Express. The airline plans to fly a network of domestic routes as well as international charters. The first two RJ100s are scheduled to be delivered in November and December of 1998, with the remaining three following in the second half of 1999. With this order, the Avro RJ orderbook stands as 148 aircraft.

April 1998

SABENA 75th anniversary RJ100 delivered
SABENA took delivery on 1 April of an Avro RJ100 painted in a special color scheme to commemorate the airline's 75th Anniversary. The special design consists of sixty Sabena "S" symbols in three different sizes and five colors (yellow, red, green, blue, and silver). The special scheme was designed by belgian design agency Archimage and applied at the British Aerospace Regional Aircraft Surface Finishing Center at Woodford. In addition to flying regular services, the RJ100, registered OO-DWD, will also appear at special events marking SABENA's 75th anniversary. It will retain the special color scheme until January 1999. The delivery of OO-DWD brings SABENA's BAe 146/Avro RJ fleet to 24, including 14 RJ85s, 4 RJ100s, and 6 BAe 146-200s, all of which are operated on SABENA's behalf by Delta Air Transport. Five more RJ100s are on order.

BAe-AMJ to market ex-Thai BAe 146-300s as Debonair deal falls through
Debonair's letter of intent with Thai Airways International to take over the latter's five BAe 146-300s has apparently lapsed, and BAe-AMJ has been retained to market the aircraft. This marks the first time that AMJ has marketed aircraft outside its own portfolio, and reflects the great success AMJ has enjoyed in securing customers for its BAe 146 fleet. The five Thai BAe 146-300s -- which are being offered for sale, not lease -- are relatively recent aircraft, with EFIS flightdecks and low time on both airframe and engines. They are currently configured in a 108-seat 6-abreast layout with two galleys and two toilets. Given the extreme scarcity of BAe 146s on the market, it is not clear how Debonair will obtain the additional capacity it needs for its ambitious expansion plans.

AI(R) to be dissolved
British Aerospace, Aerospatiale, and Alenia Aerospazio agreed to dissolve their Aero International (Regional) partnership at a meeting of the AI(R) Board of Directors held on Friday 24 April. Once the dissolution is finalized, BAe and ATR will resume marketing their product lines independently. The two companies will, however, continue to share some facilities at Toulouse and Washington DC. The decision to dissolve AI(R) came in the wake of the decision to cancel the planned AIRJET in December 1997.

Azzurra Air to operate as Alitalia Express
Azzurra Air's growing Avro RJ fleet is being repainted in Alitalia Express colors, to indicate their use on code-sharing services with the national airline. Azzurra recently took delivery of four RJ70s previously operated by parent Air Malta to supplement its current fleet of three RJ85s.

May 1998

KLM uk extends BAe 146 leases
KLM uk has agreed with BAe-AMJ to extend the leases on two series 300s for five years, until 30 June 2003, and on three series 300s for seven years, until 30 June 2005. Leases of the remaining three AMJ-leased BAe 146-300s continue until 2000, as previously planned. As part of the deal, KLM uk has arranged to return its sole series 100 to AMJ. The staggered lease end dates give KLM uk flexibility in future fleet planning. KLM uk also operates a further two series 300 which it owns.

Ansett considers transferring BAe 146s to regional affiliates
In a move to reduce costs, Ansett has for some time been considering transferring some or all of its BAe 146s and the routes they serve to its regional affiliates -- Skywest, Kendell, and Flight West. A decision on such a transfer awaits the results of on-going safety audits of the regionals and of labor negotiations with Ansett's and the regionals' unions.

Competition heats up for the Avro RJ
Since the demise of the Fokker 70/100 family, Avro has had the 70-100 seat regional jet market pretty much to itself. This situation is about to change, however. At the upper end, Boeing will roll out its new 100-seat 717-200 (previously known as the McDonnell Douglas MD-95) on 10 June, and is considering a family of such aircraft, including a smaller, 85-seat 717-100X version. Although problems with the 717's BMW/Rolls-Royce BR715 engines have delayed flight testing, initial deliveries are due in mid-1999. Boeing has firm orders for 55 717s, from AirTran (50) and lessor Bavaria (5). The 717-200 competes with the RJ100, and any smaller version would compete with the RJ85. Although the 717's price will apparently not be as low as Boeing had hoped, the 717 will still be a formidable competitor, given Boeing's marketing muscle. At the lower end, Canadair will begin deliveries of its 70-seat CRJ-700 in late 2000. To date, the CRJ-700 has attracted 67 firm orders, options, and memoranda of understanding from 7 airlines. BAe has had relatively little success in this size range, with only 12 sales of the 70-seat RJ70, which is now available only by special order. Fairchild Dornier has now also jumped into the fray with its new 528/728/928JET family. The first member of this family, the 70-75 seat 728JET, was officially launched at the ILA 98 show in Berlin on 19 May. It has already attracted orders for 30 aircraft from German airline Eurowings (a current BAe 146 operator) and for 15 from French airline Protéus. Current Avro RJ operators Lufthansa CityLine and Crossair have also announced their interest in the program and are considering an initial order for up to 120 aircraft. Initial deliveries of the 728JET are expected in late 2001. Development of the 55-seat 528JET and 90-95 seat 928JET will eventually create a family that competes directly with the entire Avro RJ line. Other potential competitors include Airbus' proposed A319M5 and AE316/317 family at the top end of the range and Embraer's EMB-170 at the bottom end. ATR may also seek to revive the planned AIRJET.

June 1998

Jersey European to acquire Thai BAe 146-300s
Jersey European has acquired the five ex-Thai BAe 146-300s from FBM Jet Engine Support (which bought the aircraft from Thai) in a deal brokered by BAe-AMJ, which had the exclusive marketing rights for the aircraft on behalf of FBM. The first two aircraft have arrived in the UK; all five are due to be delivered by early July, bringing JEA's BAe 146 fleet to 17 aircraft. Delivery of the aircraft will allow increased jet service on several of the airline's routes. From 18 May, all JEA's services from the Channel Islands to Birmingham and Glasgow have been operated with BAe 146s, replacing Fokker F27s. On 1 August, a new route will be launched from Belfast to London Luton, with three daily roundtrips.

WDL acquires a BAe 146 for passenger charters
WDL Aviation of Cologne will join the ranks of BAe 146 operators when it takes delivery of a BAe 146-100 from BAe-AMJ in July. The German airline has signed a contract to purchase BAe 146-100 E1011, which is currently on lease to KLM uk as G-UKJF; it had previously served with Air Nova, Royal West, and TABA. The aircraft will be delivered to WDL following completion of its KLM uk lease on 30 June. WDL will use it to enter the ad-hoc and contract charter market. WDL Aviation, one of Germany's oldest air operating companies, is owned by Westdeutsche Luftwerbung Theodor Wüllenkemper GmbH & Co. KG, a group set up in the early 1950s. WDL currently operates 21 Fokker F27s on freight work. WDL Aviation President Walter Böhnke sees "a significant ad-hoc charter and wet-lease market that we can exploit with the BAe 146. We have noticed the strong branding that the BAe 146 and RJ family has in Germany and we are confident that we can capitalise on this." E1011 will be configured in a 74-seat, 6-abreast layout with 32-inch pitch and new Avio leather seats. The sale of E1011 to WDL brings AMJ's portfolio to 94 aircraft.

Pioneer BAe 146 operator hits 15-year mark
Air Wisconsin, the second airline to place the BAe 146 into service, will celebrate 15 years of BAe 146 operations on 27 June. Air Wisconsin was the launch customer for the BAe 146, its order for four series 200s, with options on a further four, being announced at the roll-out of the first BAe 146. Air Wisconsin took delivery of its first aircraft, series 200 N601AW, on 16 June 1983. This aircraft flew Air Wisconsin's first service on 27 June 1983. At the time, Air Wisconsin was operating under its own colors. Its close association with United Airlines later developed into a full code-sharing arrangement in 1985, with all Air Wisconsin aircraft being repainted in United Express colors. Air Wisconsin eventually took up all four of the options it had placed with its initial order, and then ordered a further two series 200s, giving it a ten-aircraft fleet. The BAe 146s were instrumental in Air Wisconsin's rapid growth. From 1985 to 1989, it was the largest regional airline in the USA, in terms of passengers carried. Air Wisconsin was also the first airline to order the stretched series 300, the first of which arrived on 16 December 1988, and the first to place it into service. The airline's take-over of fellow United Express operator Aspen in 1990 then added several series 100s to the fleet. Over the years, Air Wisconsin has had its ups and downs; its relationship with partner United was at times strained and eventually resulted in a complete takeover of the airline by United. In 1993, the airline's jet operations were sold to CJT Holdings and Air Wisconsin resumed its independence, though the relationship with United continued. The airline has since added several more series 200s to its fleet, most recently by acquiring three former Atlantic Southeast Airlines aircraft on lease from BAe-AMJ. In 1996, Air Wisconsin announced a major effort to upgrade its BAe 146 fleet, including conversion of all aircraft from six-abreast to five-abreast seating, thus providing substantially improved comfort. Air Wisconsin's current BAe 146 fleet consists of one series 100, twelve series 200s, and five series 300s.

July 1998

AI(R) dissolved
British Aerospace's partnership with ATR, which had seen BAe's Avro RJ and Jetstream families marketed jointly with ATR's ATR42 and ATR72 under the AI(R) banner, was formally dissolved on 6 July. British Aerospace Regional Aircraft (BARA) took over sales, marketing, and customer support of the Avro RJ regional jet family on 1 July. Sales, Marketing, and Customer Support teams will remain in Toulouse, with the Washington DC office serving the American continent. Avro RJ manufacturing and complementary activities will continue at Woodford, with support from the BAe Regional Aircraft team at Prestwick. Customer Training will remain centered at Woodford, with additional facilities at Hatfield, Prestwick, and Washington Dulles. The Spares Distribution centre is at Weybridge, complemented by a facility at Washington Dulles and an additional facility to be opened shortly at Melbourne in Australia. Mike O'Callaghan, Managing Director of BAe Regional Aircraft, commented that "the business has been turned around from making losses to achieving a break-even in 1997 -- an achievement that few competitors can claim. By re-integrating the sales, marketing and support activities back into British Aerospace Regional Aircraft, we can now take the business forward and in doing so create a greater contribution to the future of British Aerospace".

CityFlyer expands its Avro RJ100 fleet
CityFlyer took delivery of its fifth Avro RJ100 and signed an order for two more Avro RJ100s, plus two options, at a ceremony at Woodford on 24 July. The two aircraft on firm order will be delivered during the summer of 1999. CityFlyer Managing Director Brad Burgess said that "the Avro RJ has become the chosen vehicle for our expansion. There are many RJ projects proposed or under development. However, in reality with its demonstrated efficiency and performance in our operations, the Avro RJ is the best choice for us." All CityFlyer's aircraft are operated in British Airways colors on routes from London Gatwick.

August 1998

AirBC to add Edmonton-Denver BAe 146 service
As part of a realignment of Air Canada's and AirBC's operations in western Canada, AirBC will introduce a new Edmonton-Denver BAe 146 service on 5 October. The flight will provide connections with Air Canada's Star Alliance partner United Airlines' Denver hub.

Braathens buys Malmö Aviation
Norwegian airline Braathens has bought Swedish airline Malmö Aviation for SEK 600 million (about US$76 million). The take-over will take place during the autumn, and will bring Malmö into the KLM alliance. Earlier, Braathens had taken over Transwede and renamed it Braathens Sweden AB. Malmö will, however, continue to operate under its own name. Malmö currently operates 10 BAe 146-200s; an additional 146-200 is leased to CityJet which operates it on Malmö's behalf between London City and Stockholm.

Air Atlantic to end flight operations
Halifax-based Air Atlantic will terminate its commercial agreement with Canadian Airlines on 24 October, and cease all flight operations. Air Atlantic's owner, IMP Group, will continue to maintain the airline's operating certificate and will study the viability of a non-scheduled operation over the winter months, although the current excess capacity in the Canadian charter market does not bode well for this plan. The routes currently flown by Air Atlantic will be taken over by Montreal-based Inter-Canadian. IMP will continue to provide ground support for Inter-Canadian. Air Atlantic's three BAe 146-200s will be re-marketed by BAe Aerospace Asset Management-Jets (AMJ).

Airlink BAe 146s to fly trans-Tasman services during Christmas period
QANTAS regional airline subsidiary Airlink will operate non-stop services between Brisbane and Hobart during the 1998/1999 Christmas period. Daily non-stop flights between the two cities will be flown between 20 December 1998 and 25 January 1999 by a BAe 146-100 operating as QF871/872. This is the first time Airlink has offered a scheduled service across the Tasman Sea.

September 1998

Northwest Airlines pilot strike grounds Mesaba
Mesaba Airlines, which operates as a Northwest Airlink affiliate, temporarily ceased operations from 29 August to 16 September, when Northwest Airlines shut down as a result of a strike by its pilots. Since almost 80% of Mesaba's traffic is connecting with Northwest, it would not have been economically viable for Mesaba to continue operating. The move grounded Mesaba's 14 Avro RJ85s, as well as its extensive fleet of SAAB 340s and de Havilland Canada Dash 8s, although Mesaba did operate some RJ85s on charters to shuttle Northwest employees between stations. On September 1, US Secretary of Transportation Rodney E. Slater ordered Mesaba and the other Northwest Airlink operator, Express 1 Airlines, to resume providing air service to 17 communities under the Essential Air Services program sponsored by the Department of Transportation. Mesaba balked, indicating that it would be difficult for it to resume service since it is heavily dependent on services provided by Northwest Airlines, such as ticketing. The Department of Transportation filed suit, but it was rendered moot when the strike's end led to flights resuming. Mesaba's introduction of Avro RJ85s was one of the issues in the Northwest pilot's strike; the pilot's union feared that regional jets flown by lower-paid Airlink crews will displace mainline flying. Northwest countered that use of regional jets on Airlink routes stimulates mainline traffic by bringing more passengers to the airline's hubs, and offered to tie the growth of the regional jet fleet to expansion of the mainline jet fleet. Because of the shutdown, Mesaba's September passenger load factor dropped from 53.9 percent to 42.5 percent, while revenue passenger miles fell from 68.2 million to 36.5 million.

Air Nova expands BAe 146 services during Air Canada strike
Halifax-based Air Nova, which operates as an Air Canada Connector, has added several BAe 146 flights to help maintain service after Air Canada was grounded by a pilot strike on 2 September. BAe 146 flights were added between Halifax and Montreal, Ottawa, and St. John's. On the other side of the continent, AirBC also continues flying.

More competition in the regional jet market
Bombardier Aerospace announced at the Farnborough Air Show that it was considering developing a new, 90-seat regional jet to complement its existing 50-seat CRJ and forthcoming 70-seat CRJ-700. The new aircraft, code-named BRJ-X, would feature a wider fuselage than the CRJ, with 5-abreast seating and underwing engines. The estimated development cost is US$1.5 billion. Bombardier will examine the idea for a year before deciding whether to proceed. If the aircraft is launched, deliveries could begin in 2003.

TAPC Uzbekistan to build Avro RJ air brakes
Tashkent Aircraft Production Corporation (TAPC) in Uzbekistan has received a contract from BAe Regional Aircraft to maufacture the complete air brake assembly for the Avro RJ family. TAPC already holds a contract for production of cockpit floor beam assemblies for the Avro RJ.

Flightlease orders 3 Avro RJ100s for operation by SABENA
SAir Group subsidiary Flightlease announced an US$80 million order for 3 Avro RJ100s on 9 September. The aircraft are due to be delivered in July, September, and October 1999, and will be leased to SABENA for operation by Delta Air Transport (DAT). DAT already operates 14 Avro RJ85s, 5 RJ100s, and 6 BAe 146s on SABENA's behalf from the airline's Brussels hub, with 4 more RJ100s from an earlier order still scheduled for delivery. Delivery of the Flightlease aircraft will bring SABENA's BAe 146/Avro RJ fleet to 32. Flightlease was established in 1997 to provide a focus for lease and asset management expertise in the SAir Group which is the parent company of Swissair, Crossair, and SABENA. This order is the company's first for regional aircraft. The Avro RJ order book now stands at 150, of which 111 have been delivered.

Kendell to acquire 50-seat regional jets, displace some Ansett BAe 146s
Kendell Airlines is to order 12 new 50-seat regional jets and take over a number of Ansett routes in south-eastern Australia and Queensland, beginning in November 1999. Ansett will withdraw services to Launceston, Hobart (except for a daily Melbourne-Hobart service), Rockhampton, Mackay, Coffs Harbour, and Ballina; between Canberra-Brisbane and Canberra-Adelaide; and reduce flights between Canberra and Melbourne/Sydney. Ansett has been losing more than A$1 million a week on these services. These moves will enable the airline to retire four BAe 146-300s and two Boeing 737-300s. Earlier, consideration had been given to transferring Ansett's BAe 146s and the routes they served to regional operators such as Kendell. The decision to go for smaller jets will enable service frequency to be increased. The Embraer ERJ-145 and Canadair CRJ-200 are being considered for the Kendell order. Kendell currently operates Saab 340s and Metro 23s.

New head for BAe Asset Management
David Singleton has been appointed the new Managing Director of British Aerospace Asset Management, succeeding Tony Rice who has become Group Managing Director - Commercial Aircraft.

BAe discusses Avro RJX options at ERA '98
British Aerospace Regional Aircraft presented some options for potential future developments of the Avro RJ, designated the Avro RJX, at the European Regions Airline Association's annual meeting. Pratt & Whitney's PW308 and the Allied Signal AS907 are being studied as potential replacements for the RJ's Allied Signal LF507 engines. BAe is seeking to reduce fuel burn by 15 percent, lower direct maintenance costs by 20 percent, and cut empty weight by 900 Kg. Aside from improving operating efficiency, these changes would also reduce navigation and landing charges. Upgrades to the Avro RJ flight deck are also being studied. RJX deliveries could begin in late 2001.

Avrotec updates Lufthansa CityLine's RJ85s
Lufthansa CityLine's RJ85s are undergoing a maintenance and updating program at Avrotec Aircraft Services, BAe Regional Aircraft's maintenance and refurbishment facility at Woodford. The program includes a scheduled C check, installation of a Collins GNLS-910 flight management system and Normalair Garrett digital auto-pressurisation system, and modifications to the communications equipment to enable 8.33kHz channel spacing, so as to meet future European navigation requirements and provide a 35,000 ft cruise altitude capability. The first aircraft was completed on 2 September, three days ahead of the planned 4-week schedule. Additional aircraft will follow on a 2-week rolling basis until May 1999. Avrotec has a contract to maintain Lufthansa CityLine's RJ85 fleet through 2000.

Paukn Air BAe 146 crashes at Melilla
A Paukn Air BAe 146-100 flying between Málaga and Melilla crashed in a mountainous area north of Melilla on the morning of Friday, 25 September 1998, killing all 38 on board. See the special report.

October 1998

BAe promotes Avro RJ and BAe 146 for business jet use
BAe Regional Aircraft and BAe-AMJ promoted the use of the Avro RJ and BAe 146 as business jets at the Annual Meeting and Convention of the National Business Aviation Association (NBAA) in Las Vegas. The Avro RJ/BAe 146 offers corporate users a spacious cabin, with almost as much interior space as the Boeing Business Jet; ability to operate from restricted airfields; and compliance with stage 3 noise rules. A new-build Avro Business Jet would cost about $26-30 million, depending on the equipment specified and the interior fittings. Conversions of existing BAe 146s would cost substantially less. Executive Aircraft Corporation exhibited a BAe 146-100 at the show; this aircraft is currently available for sale. Two BAe 146-100s have recently been sold to corporate operators -- one to Moncrief Oil of Texas and one to Formula One Administration Limited of the UK. In both cases, access to restricted airports was a major factor. Other BAe 146s used in VIP roles include three series 100s operated the Royal Air Force's No. 32 (The Royal) Squadron, one series 100 operated by the Amiri Royal Flight, and one series 200 and one RJ85 operated by Pelita Air Service of Indonesia. Although BAe 146s are in high demand, airline interest is highest for the higher-capacity series 200s and 300s. AMJ anticipates that several series 100s will become available in the coming years as airlines move up to larger versions or to new-build Avro RJs.

Air Atlantic ends flight operations
Halifax-based Air Atlantic ceased flight operations at the end of Saturday, 24 October. Air Atlantic's three BAe 146-200s are being re-marketed by BAe Aerospace Asset Management-Jets (AMJ); one was leased to former competitor Air Nova for two months to cover for maintenance on the latter's 146s.

UNI Air to dispose of its BAe 146-300s
Taiwanese airline UNI Air is reported to be planning to dispose of its five BAe 146-300s as part of a fleet rationalization program. The BAe 146s, which were inherited from Makung Airlines, would be replaced by additional McDonnell Douglas MD-90s.

November 1998

Strong interest in Air Atlantic's BAe 146-200s
As many as 32 airlines expressed an interest in acquiring the three former Air Atlantic BAe 146-200s which BAe-AMJ is remarketing on behalf of Air Atlantic owner IMP Group. Air Atlantic ceased operations on 24 October, when its contract to fly Canadian Partner routes ended. Debonair appears to be front-runner in the race to obtain these three aircraft, having signed a Memorandum of Understanding with AMJ giving them 30 days exclusivity.

Pauknair ceases operations
Pauknair has decided not to resume operations, which were suspended following the crash of one of their two BAe 146-100s near Melilla on 25 September 1998, and the departure of their second aircraft for heavy maintenance soon thereafter. Although the airline had at first planned to continue operations, and were looking for a new aircraft to replace the one that crashed, a decision was ultimately made close down the three-year-old airline. Pauknair and BAe-AMJ are working together to arrange for the return of the remaining BAe 146 and find a new lessee for the remainder of the lease period. Ironically, the lease on this aircraft and its sister ship had been renewed on the day before the crash.

Malmö Aviation negotiates to acquire China Northwest's BAe 146-300s
Malmö Aviation is reported to be planning to acquire seven BAe 146-300s from China Northwest. The transaction would enable the Swedish company to substantially increase its capacity, both by increasing its fleet and by replacing some of its series 200s with the larger series 300s, which seat 16 more passengers. Malmö has been experiencing a heavy increase in passenger demand from Bromma, and plans to introduce new routes from Sweden to Milan (in association with Alitalia) and Amsterdam (in association with KLM). Malmö was acquired in August by Braathens, and is to merge its operations with Braathens Sweden (formerly Transwede), but retain the Malmö name. All Malmö's flights have been operating with Braathens flight numbers since the winter schedule went into effect on 25 October. China Northwest's BAe 146-300s were among the last 146s built before production switched to the Avro RJ series, and are transitional aircraft between the two models. They have the same LF507 engines as the RJ series, for example, but without the FADEC.

Debonair to operate services for Lufthansa CityLine
Debonair has signed an agreement with Lufthansa Cityline to operate five BAe 146-200s on the German airline's behalf, beginning in March 1999. The aircraft will be flown on flights from Münich. The agreement replaces an earlier agreement to operate flights on behalf of Air France.

December 1998

British Airways buys CityFlyer
British Airways has taken over Gatwick-based Avro RJ100 operator CityFlyer. CityFlyer already operates as a British Airways franchisee, in full British Airways colors. The airline will continue operating as a indipendent company. CityFlyer operates five RJ100s, and has two more on order.

Park Express has birth pains
New Turkish airline Park Express is encountering difficulties in securing financing and the necessary government approvals. In early December, it appeared that these problems would result in a delay, and possibly an outright cancellation, of its order for five Avro RJ100s. The first two RJ100s for Park Express were rolled out at the time, in partial colors, and looked likely to become white-tails. The problems now appear to have been sorted out, however, and work on preparing the aircraft for delivery -- now scheduled for early 1999 -- has resumed.

Debonair operates BAe 146s for Swissair Express
Debonair began operating scheduled services from Zurich to Venice (three times daily) and Bologna (once daily) on behalf of Swissair and its Italian partner, Air One. The service, which began on 6 December, is operated by a BAe 146-200 painted in Swissair Express colors. Swissair Express is a new effort by Swissair to upgrade its codeshare flights to a more Swissair-like product. In other news, Debonair has agreed with BAe-AMJ to take over the lease of Pauknair's remaining BAe 146-100. It has also added a Boeing 737-300, on lease from AB Airlines, to increase capacity on services from Gatwick and Luton to Barcelona Airports.

New Italian airline eyes BAe 146s
A new Italian airline, Assofly Airlines, is considering using up to five BAe 146-200s on charter and scheduled flights from Pisa and Roma Ciampino. "Asso" means "ace" in Italian, but the airline may wish to rethink its name if it plans to fly to English-speaking countries.

Air Atlantic wins maintenance contract for Mesaba's Avro RJs
Air Atlantic has won a major maintenance contract from Minneapolis-based Mesaba for major structural airframe inspections and modification work on 14 Avro RJ85. The work will be carried out at the Air Atlantic Maintenance Division facility in St. John's beginning in February 1999, and proceeding throughout the year. Although Air Atlantic's flying activities ended on 24 October, when the airline's contract with Canadian ended, owner IMP Group decided to keep its maintenance staff and aggressively market the maintenance facility.

Continue to January 1999 news.

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