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News Archive 2000

This page contains an archive of news items relating to the BAe 146 and Avro RJ regional jetliners, from January to December 2000.

Index

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

buzz takes to the skies
New low-cost airline buzz began operations as planned on 4 January. Initial services linked London Stansted to Berlin, Dusseldorf, Frankfurt, Milan, Lyon, Paris, and Vienna -- all but Lyon and Vienna being former KLM uk routes. Unlike other low-cost airlines, buzz serves the primary airport at each destination. buzz is using eight BAe 146-300s transferred from KLM uk, and two 737s.

Avro RJX promises extended range
Computer simulations based on data from wind-tunnel tests shows that the Avro RJX will have substantial range improvements over the current Avro RJ and earlier BAe 146 models, even from difficult airports. Under the hot-and-high conditions encountered at Denver in the summer, for example, the range of the BAe 146-300 with a full load of 100 passengers is limited to 692nm, while the higher-powered RJ100 has a range of 1,146nm -- not quite enough to reach many destinations on the east coast. In contrast, the RJX-100 is expected to have a range of 1,620nm -- more than enough to cover the whole of the continental United States, as well as all of Mexico and most of Canada. BAE will now prepare the Performance Manuals for entry-into-service.

Record year for Asset Management
The asset management arm of BAE Systems enjoyed another record year in 1999, securing 26 lease or lease extensions for BAe 146s and Avro RJs in its portfolio, as well as for eight ATPs. Combined, these deals were worth US$275 million. In addition to previously announced deals, BAe 146 lease extensions included one series 300 to KLM uk, for use by its subsidiary buzz, and one series 200 to Air Wisconsin. Several additional lease extensions have not been announced. The portfolio of BAE Systems' asset management arm currently includes 76 BAe 146s and 31 Avro RJs.

Air Canada Connector airlines to be consolidated
In the wake of its acquisition of rival Canadian Airlines, Air Canada is planning to consolidate its regional partners into a single airline. Four regional airlines operate under the Air Canada Connector banner, including BAe 146 operators AirBC and Air Nova. Joseph Randell, President and CEO of Air Nova and Interim President of Air Ontario and AirBC, will head the consolidated airline. Canadian's regional subsidiary Canadian Regional may also be included in the new grouping, although Air Canada must first offer it for sale. AirBC and AirNova operate five BAe 146-200s each but have hitherto been prevented from acquiring more jets by Air Canada's scope clause. The addition of Canadian Regional's 30 Fokker F28s to the mix may force changes, however.

Meridiana for sale
Italian airline Meridiana is being offered for sale by its owner and founder, the Aga Khan. Meridiana operates four BAe 146-200s from Florence to Italian domestic and European destinations. The Aga Khan, who started Meridiana as Alisarda in 1963, has gradually been disposing of his Sardinian holdings. Meridiana is the last part of his empire to be put up for sale. Lloyds TSB and KPMG Corporate Finance have been retained to find buyers for the airline. Several European airlines are said to be interested.

Rumors swirl of Ansett NZ sale
Rumors are swirling about an imminent sale of New Zealand BAe 146 operator Ansett New Zealand. The airline has been thought to be up for sale for some time, and went through a punishing strike in the fall in an effort to drive down costs so to make itself more attractive to potential buyers. It has since reduced its pilot workforce, and disposed of two of its BAe 146s. One rumor pointed to QANTAS as the buyer, with the Australian Financial Review reporting that QANTAS was to transfer six Boeing 737s to Ansett NZ. The Australian airline denied the reports. More recent rumors point to a consortium of New Zealand investors as the buyer. It is widely expected that any buyer would seek to reach a partnership with QANTAS and rename Ansett NZ to reduce the impact of the ill-will generated by the strike.

Air Foyle sells CityJet stake to Air France
Air France has purchased Air Foyle's stake in Irish Airline Cityjet. Air Foyle had acquired a controlling stake in CityJet in April 1999, with Air France also taking a 25% stake at the time. The deal gives Air France complete control of the Irish airline, which will continue to be operated as a separate subsidiary. CityJet CEO Pat Byrne has relinquished his position and been appointed Chairman of the Board, with Chief Operating Officer Jacques Bankir taking over the CEO position. CityJet operates six BAe 146s. [2000-01-31]

British Midland Commuter begins BAe 146 operations
British Midland Commuter's long-delayed BAe 146 operations on behalf of Lufthansa CityLine began on 7 February with a single aircraft. British Midland was awarded the contract to operate five BAe 146s on services from Münich, replacing bankrupt Debonair, but found it difficult to secure suitable aircraft. The first aircraft is in fact an ex-Debonair series 200, which is being leased from Atlantic Airways. A second ex-Debonair 146 will join the service in late March, together with a 146 transferred from British Midland subsidiary British Regional Airlines. Two more 146s will be added later. [2000-02-08]

Integration of Air Canada regionals begins
Air Canada began the process of consolidating its regional partners into a single airline by coordinating their summer schedules with that of Canadian Regional. Aircraft and routes are being re-aligned to eliminate duplication. The move will allow some of the BAe 146s operated by Air Canada's regional partners to be re-deployed. AirBC will double the daily frequency of its Winnipeg-Denver 146 service, and Air Nova will increase Montreal-Moncton service to three times daily, and institute a new 146 service between Montreal and Charlottetown. [2000-02-09]

Swisscargo sells BAe 146 belly space
Swissair cargo subsidiary Swisscargo is replacing its truck service between Zürich and Northern Italy with direct air cargo services, using cargo capacity on the BAe 146-200s operated by Flightline on Swissair Express flights from Zürich to Bologna, Venice, and Turin. Each 146 has a maximum cargo capacity of 1,000kg. [2000-02-09]

British Airways considers transferring routes to CityFlyer
In a move to cut costs, British Airways is considering transferring some of its short-haul routes from London Gatwick to subsidiary CityFlyer. Should the transfer take place, an order for twelve additional Avro RJs is being considered to supplement the seven RJ100s (with three more on order) and ATR turboprops CityFlyer currently operates. The RJX is also being considered, but any order would have to include some of the current RJ model since the RJX will not be available before mid 2001. [2000-02-13]

Air New Zealand buys Ansett
Air New Zealand announced on 18 February that it will buy News Corp's 50 per cent stake in Australian airline Ansett, giving it complete control. The sale is subject to regulatory approval. Ansett Australia will continue to operate independently, under its own brand, though various functions of the two airlines are likely to be combined. Ansett's diverse fleet includes seven BAe 146-200s, three 300s, and two 200QT freighters. The series 300s are being advertized for sale, having been replaced on regional routes by CRJs operated by Ansett subsidiary Kendell. [2000-02-19]

Titan operates BAe 146 for Augsburg Airways
Titan is operating a BAe 146-200 between Augsburg and Berlin on behalf of Augsburg Airways, covering for late deliveries of Dash 8s ordered by the German airline. The lease will run through March 28, but may be extended further given the delays Dash 8 deliveries are currently experiencing. [2000-02-19]

TNT Airways begins operations
TNT Airways began operating from its Liège base in mid-February. Hitherto, TNT's fleet of freighters, including its 18 BAe 146QTs, has been operated on its behalf by a variety of European airlines. As an Australian company, TNT had been precluded from operating its own airline. After TNT was bought by the Dutch Post Office in 1997, the restriction no longer applied, and a decision was made in April 1999 to establish an in-house airline. Doing so proved more complicated than anticipated, however. The new TNT Airways also has experienced difficulties in attracting flying crew to high-tax Belgium. At present, TNT Airways is operating a single BAe 146-300QT, with more due to be added in coming months. All eight 146s currently operated by Air Foyle are due to be transferred by May 3, when Air Foyle's contract to operate them comes to an end. Pan Air Lineas Aereas's contract runs for another year. [2000-02-28]

BAE Systems hints of forthcoming RJX orders...
In an interview with Reuters, BAE Systems vice president for marketing Nick Godwin hinted that about 20 orders for Avro RJs and RJXs will be announced in the next few weeks. A conditional order for the RJX has apparently been received from a European airline, although a formal launch is still awaiting some additional orders. With deliveries having been completed on SABENA's and Crossair's large orders, and almost completed on Northwest's order, the backlog of Avro RJ orders is down to eight aircraft -- less than half a year's worth of production at the current production rate of 22 aircraft a year. Godwin expects the backlog to be back up to "12 or 18 months" within a few months. Although Godwin did not name any airlines, past rumors have pointed to Eurowings, Aer Lingus Commuter, and CityFlyer as likely customers. The first RJX is scheduled to roll off the production line later this year. Honeywell carried out the first test flight of its new AS900 engine in late January. [2000-03-09]

Nose section for airframe 376 (BAE Systems) ... As first RJX takes shape The first Avro RJX is beginning to take shape on the Woodford assembly line. The nose section, flight deck floor, and forward fuselage drum are all being assembled at Woodford, while other components are being manufactured at other BAE Systems and subcontractor plants. The wing is scheduled to be delivered from BAE Systems' Prestwick plant at the end of March. In the meantime, the test program for the new Honeywell (formerly AlliedSignal) AS900 engine, which has been selected for the RJX, is also proceeding. Honeywell carried out the first test flight of AS900 in late January, using a Boeing 720. The first RJX, the 376th airframe in the BAe 146/Avro RJ/Avro RJX family, will be an RJX-85 and is scheduled to be rolled out in a few months, and to make her first flight during the summer. The RJX-100 prototype, line number 378, will follow six later. Both aircraft will participate in the flight development program, with the aim of allowing airline service to begin in mid-2001, well before competitors from Bombardier, Embraer, and Fairchild Dornier will be ready. [2000-03-09]

Two more Avro RJs for Aegean Airlines
Aegean Airlines has signed an order for two more Avro RJ100s, for delivery in June and July. They will bring Aegean's RJ100 fleet to six, replacing the two Fokker 100s acquired with the purchase of Air Greece. Aegean's Avro RJ100s have achieved a dispatch reliability of 99.92% in February on a busy schedule including as many as 12 sectors a day, according to Chief Operating Officer Antonis Simigdalas. Load factors on Aegean's route network are now averaging 65%. With this order, the Avro RJ orderbook stands at 154 aircraft. [2000-03-21]

Go-ahead for Avro RJX
BAE Systems has formally launched its new Avro RJX. Taking advantage of the RJ Summit Meeting at London City Airport, Mike O'Callaghan, Managing Director for Regional Aircraft, announced the formal launch of the Avro RJX family of regional jet airliners. Although no orders were announced, Mr. O'Callaghan expressed confidence that initial orders for the type would be finalized in the near future. The first two RJXs are currently under assembly at Woodford, with the first scheduled to be rolled out this summer and to make her first flight in the fall. A more intensive flight test program is now being planned than had originally been anticipated, so that some improvements which had been planned for later in the program will be available from the start. Initial deliveries are scheduled for September 2001. [2000-03-21]

Titan to operate a BAe 146 for Tyrolean
Titan will operate a BAe 146-200 on behalf of Austria's Tyrolean Airlines on a 6-month lease. The aircraft will be used on services from Budapest. Titan is currently operating a BAe 146 on behalf of Augsburg Airways. [2000-03-22]

Ansett NZ sold
Ending months of speculation, Ansett New Zealand announced that a consortium of New Zealand investors had bought the airline from News Corp for an undisclosed sum. The investors, brought together by merchant bank Clavell Capital, include businessmen Alan Gibbs and Trevor Farmer, the Dunedin-based Skeggs group, and current Ansett NZ chairman Ken Cowley. Australian clothing retailer R.M. Williams Holdings Ltd joined the group a short time later. Both Cowley and chief executive Kevin Doddrell will remain on the airline's board. QANTAS had also been rumored to be a likely investor, but it did not join the group. The possibility of a codeshare or other collaborative arrangement remains, although QANTAS is currently pursuing a stake in rival Air New Zealand. Ansett New Zealand's new owners stated that they would change the airline's name, with an announcement expected in May. Rumors about possible new names include reviving the name of South Pacific Airlines of New Zealand (SPANZ), which brought air services to many small New Zealand towns, but folded in 1966. Ansett New Zealand currently operates eight BAe 146-300s alongside turboprop Dash 8s. [2000-03-27]

Flightline to operate a BAe 146 for Croatia Airlines
Flightline will operate a BAe 146-200 on behalf of Croatia Airlines from April 12. The aircraft, which will be partially painted in Croatia Airlines colors, will be used on services from Zagreb to destinations throughout the airline's domestic and European system. The lease will run for six weeks at first, but is likely to be extended. Flightline operates BAe 146s for several airlines, including three series 200s and a series 300 for Swissair Express and two series 200s for Lufthansa. Another series 200 just completed a lease to Aer Lingus Commuter. [2000-03-31]

The new RJX will be readily identifiable by its elongated engine nacelles (BAE Systems)

Druk Air places first Avro RJX order
Druk Air (Royal Bhutan Airlines) has placed the first order for the new Avro RJX derivative of the BAe 146 and Avro RJ with an order for two Avro RJX-85s. Deliveries of the two aircraft are scheduled for November 2001 and January 2002. Druk Air already operates two BAe 146-100s. The BAe 146-100 was the airline's first jet aircraft. Its choice was dictated by the exceptionally difficult operating conditions at the airport at Bhutan's capital, Paro. Paro is located at 7,300 ft above sea level in a deep valley in the Himalayas, and is surrounded by hills as high as 16,000 ft. The BAe 146 and its successors remain the only jet aircraft capable of operating at Paro. The RJX-85 will pick up the mantle from Druk Air's 146-100s, providing both greater capacity and extended range, allowing non-stop services to Bangkok (currently served via Calcutta or Dhaka) and Hong Kong. Druk Air's RJX-85s will be fitted in a two-class, 82-seat configuration. Druk Air Chairman, H.E. Leki Dorji, cited the Avro RJX's "superior performance, its improved fuel efficiency and its ability to carry a greater load, especially in the summer months" as the reasons for selecting it. "There are just two ways to get to Paro -- by road or with Druk Air", he continued. "We have a vital role in the economy of Bhutan, carrying passengers and freight to and from neighbouring countries. Our British-built jets have been an essential part of our success and we are delighted to be continuing our partnership with BAE Systems Regional Aircraft."
Although there was some speculation that the "X" would be dropped from the model name once the aircraft was launched, BAE Systems has now confirmed that "Avro RJX" will be the formal model name, with sub-models being designated RJX-70, RJX-85, and RJX-100. BAE Systems is quoting a September 2001 entry into service date for the RJX, suggesting that another airline will take the first delivery. This order brings the combined BAe 146/Avro RJ/Avro RJX orderbook to 375. [2000-04-03]

Debonair orphans find homes
When Luton-based BAe 146 operator Debonair ceased operations on 30 September 1999, its fleet of two series 100s and ten series 200s was grounded. Although BAe 146s are in considerable demand, the sudden influx of such a large number of aircraft made it difficult to place them. The situation was further complicated by the large number of lessors involved. Three series 200s, which had been used on behalf of Swissair Express, quickly found a home with Flightline, who picked up the Swissair Express contract. The five series 200s which had been used on behalf of Lufthansa had been expected to similarly be taken over by British Midland Commuter, but difficulties in reaching agreement with the lessors led British Midland to seek other aircraft, although it still ultimately ended up with several former Debonair aircraft. As a result of these complications, several of the 146s were stored at various airports over the last few months. However, all have now found homes, although some are still undergoing maintenance prior to returning to service. The table below shows the disposition of Debonair's BAe 146 fleet. [2000-04-28]

CityFlyer Avro operates its nine RJ100s in British Airways colors (BAe) British Airways drops planned transfer of Gatwick routes to CityFlyer British Airways has abandoned its plan to transfer some of the routes operated by its subsidiary EuroGatwick to its other Gatwick-based subsidiary, Avro RJ100 operator CityFlyer. The proposed transfer met with strenuous opposition from the British Airline Pilot Association (BALPA) -- somewhat to the annoyance of CityFlyer pilots who are also BALPA members. The decision puts in question the potential order for additional Avro RJ100s and/or RJXs that CityFlyer had been negotiating. However, the airline says that it is still talking to BAE Systems about an order for "a significant number of additional Avro RJ100s", partly to replace its remaining ATR42s and partly for new routes, though these will not now come from EuroGatwick. One such route will be an expansion of service to Jersey to six times daily, following the suspension of British Airways own service from Heathrow. CityFlyer currently operates nine RJ100s, with one more scheduled for delivery in June. [2000-05-05]

Casco Leasing offers ALF502 engines
Former BAe executive Mike Ryan and Casco, the largest holder of BAe 146 spare parts outside BAe, have formed a new company, Casco Leasing, to provide finance and leases of ALF502 engines to BAe 146 operators. Casco Leasing's current portfolio includes 10 engines, four of which it owns and six owned by US Air. Two have already been placed on lease to Cityjet. [2000-05-05]

Jersey European adopts British European name
Exeter-based BAe 146 operator Jersey European Airways has changed its name to British European, to better reflect the scope of its current operations, which are only partially Jersey-based. In terms of aircraft livery, the change consists of simply substituting the word 'British' for the word 'Jersey' in the airline's logo, in the same font. The airline's aircraft will be gradually repainted over the next year. To avoid confusion with the old British European Airways, which was merged into British Airways in 1974, British European will not use the term 'Airways' or the abbreviation 'BEA', and advertizing will note that the airline is 'part of Walker Aviation'. [2000-05-08]

WDL operates BAe 146 for Air Nostrum
German BAe 146 operator WDL is operating a BAe 146-300 on behalf of Air Nostrum, on Iberia Regional services. The 146 was to have operated between Münich and Birmingham on behalf of BMW, but the contract was terminated when the German carmaker sold its British subsidiary Rover. The 146 operates from Zaragoza to Madrid and on to Nice and Frankfurt on weekdays, and from Madrid and Barcelona to Bologna on weekends. [2000-05-22]

Mesaba's fleet now includes 36 Avro RJ85s (Michael Bolden) 36th delivery completes Mesaba Avro RJ order Northwest Jet Airlink operator Mesaba has received the last of the 36 Avro RJ85s it had on order. Northwest placed an initial order for 12 RJ85s, with 24 options, in October 1996, for operation by Mesaba Airlines on Northwest Jet Airlink services, and Mesaba began RJ85 service in June 1997. Northwest exercised the 24 options in July 1997. Mesaba has taken all 28 of the most recent RJ85s off the production line, with all other customers opting for the larger RJ100. To remain under Northwest's scope clause, Mesaba's RJ85 are configured with 69 seats, including 16 first-class seats. Northwest recently announced an expansion of RJ85 service from its Memphis hub, including a new route to Des Moines, Iowa. RJ85 operations had hitherto been concentrated at the airline's Minneapolis-St.Paul and Detroit hubs. [2000-05-26]

Lufthansa CityLine launches new business class
Lufthansa CityLine has announced it will introduce a Business Class service on its aircraft, including its 18 Avro RJ85s, in July. Until now, Lufthansa CityLine has operated its aircraft in a single-class configuration, dubbed "City Class". Although City Class already provided a high standard of service, with 5-abreast leather seating on the RJ85s, Lufthansa CityLine wanted to provide a differentiated product for business class passengers. [2000-06-01]

Air Foyle's last BAe 146-200QT has now left (Stefano Pagiola) AirFoyle ends BAe 146 operations The BAe 146 era ended at AirFoyle when its last BAe 146QTs was transferred to TNT Airways. Luton-based AirFoyle was the first airline to operate BAe 146QTs, in May 1987. The airline's BAe 146QT fleet -- all owned by TNT and operated on its behalf -- included both series 200QTs and series 300QTs; the actual aircraft operated varied over time, as TNT rotated the aircraft among the various airlines operating on its behalf. In 1999, TNT decided to start its own airline, and ended AirFoyle's contract. The first 146 was transferred in mid-February, and the rest followed at a rate of one every two weeks. About 55 of AirFoyle's 146 pilots also transferred to TNT. [2000-06-05]

Air Zimbabwe parks its BAe 146
Fuel shortages and plumetting passenger loads due to the tense political situation in the country have forced Zimbabwean national airline Air Zimbabwe to park several of its aircraft, including its single BAe 146-200, which had been used on flights between Harare the popular tourist destination of Victoria Falls and Kariba. [2000-06-12]

Observer article attacks BAe 146 safety
An article in the June 4 edition of the Observer newspaper attacks the safety of the BAe 146. The article focuses on problems in the type's ALF502 engines, including the power rollback problem in icing conditions and the cabin fumes issue. In the usual media style, the article includes a few actual facts, and presents them in the worst possible light. Despite frequent use of phrasing such as "Observer investigations have revealed...", both problems have been well-known for some time. The US FAA issued an Airworthiness Directive (AD) on the rollback problem several years ago, restricting flights above 26,000 feet in icing conditions, and then another recently mandating modifications to cure the problem altogether. The modifications involve fitting parts from the Avro RJ's LF507 engine, which is not susceptible to the rollback problem. Other certification authorities have followed the US lead, with slight variations (Canada had less stringent operating restrictions, which may have played a part in the April 30 AirBC rollback incident). The possibility of engine fumes entering the cabin has also been known for some time, with effects ranging from mild discomfort at the odor to -- some allege -- severe adverse health effects for cabin and flight crew. Although other types have also been affected by similar problems, the controversy has long dogged the 146, and has been particularly controversial in Australia. BAE Systems issued a rebuttal of the accusation, as did several BAe 146 operators. A BAE Systems spokesman noted that the rollback problem has been known for some time, that procedures for safe operation are well established, and that the on-going modification program will eliminate the problem entirely. The spokesman also noted that various modifications and changes in operational procedures have also been implemented to reduce the cabin fumes problem, and that studies have failed to find any adverse health effects. [2000-06-12]

National Jet Italia to begin British Airways franchise flights
After a long gestation period, National Jet Italia is set to finally begin operation on July 11. The new airline, which is being established in cooperation with Australia's National Jet Systems, will operate a fleet of BAe 146-300s on British Airways franchise flights from Rome. Initial services will employ two former Uni Air BAe 146-300s on four daily flights to Palermo, in Sicily. Catania, also in Sicily, will be added later in the summer. Services to both cities will gradually be built up to eight a day. NJI's 146s will be configured in a two-class configuration, with 12 Club Europe (business class) and 82 Euro Traveller (economy class) seats and painted in full British Airways livery. British Airways and NJS first considered starting an Italian franchise operator in early 1999, using NJS's proposed acquisition of Cityjet. When this deal fell foul of European regulations, efforts turned to starting a new airline, but were delayed by a wide variety of financing, regulatory, and technical problems. Two former Uni Air 146-300s have been awaiting delivery in Woodford for most of the year, and three more were ferried from storage in Taiwan at the end of 1999. [2000-06-19]

Ansett New Zealand switches allegiance to QANTAS
As has long been anticipated, BAe 146 operator Ansett New Zealand will soon begin operating as Qantas New Zealand. The airline will formally be renamed Tasman Pacific Airlines of New Zealand, but operate with the QANTAS livery and name. QANTAS will provide management assistance to the New Zealand airline and access to the OneWorld global airline alliance. Combined buying of inputs ranging from fuel to uniforms will help reduce operating costs. The move follows Air New Zealand's recent acquisition of Australian airline Ansett, to which Ansett NZ had once been closely linked through Rupert Murdoch's News Corp. A consortium of New Zealand businessmen bought Ansett NZ from News Corp in March. The franchise agreement with QANTAS will initially last seven years, and may be renewed. Ansett NZ currently operates eight series 300s and eight Dash 8s. [2000-06-28]

Italian start-up plans BAe 146 operations
Goldwing Airlines, a new passenger airline, has announced that it intends to operate scheduled services from Palermo and Vicenza to Rome with BAe 146s. Seasonal services would also be operated to Lampedusa, Pantelleria, and Parma. The airline's first 146 is thought to be the former Air Botswana series 100, which was recently delivered to Rome. On the Palermo to Rome route, Goldwing would compete with both Alitalia and the 146s of new British Airways franchisee National Jet Italia. [2000-07-01]

Air Jet BAe 146s help cover for grounded 737s
French carrier L'Aéropostale, which is jointly owned by France's post office and Air France, is chartering an Air Jet BAe 146QC, as well as several other types, due to the grounding of its 17 Boeing 737-300QCs. Cracks were detected in the lower part of the cargo door on one of the 737s during routine maintenance, and subsequent checks found the same problem on other aircraft. As a result, the FAA issued an Airworthiness Directive grounding 737s converted with main deck cargo doors under an STC granted to Pemco Aeroplex. Ironically, the cargo door on BAe 146s was also designed and fitted by Pemco. [2000-07-07]

BAE Systems' asset management arm announces new initiatives
The asset management team of BAE Systems Regional Aircraft announced a number of new initiatives as well as several new transactions.

• A new Trading and Services unit will offer the skills the asset management team developed in reviving the market for BAe 146s to a wider aviation market. The new unit will offer four key services: aircraft re-marketing and trading; finance services; lease management services; and technical services. The asset management team has extensive experience in each of these areas, having successfully BAE Systems' own portfolio of 146s and RJs as well as several aircraft remarketed on behalf of others, arranged for lease financing, and developed a variety of technical improvements, including fleet-wide modifications and customization of individual aircraft. Several new re-marketing and trading business arrangements were announced, covering both 146s and other BAe types.
• A program of flight deck upgrades is being undertaken, with the aim of enhancing the BAe 146's competitive position, keeping it abreast of new regulations, and improving reliability. New solid state altimeters are being introduced -- replacing the existing Smiths 3B servo altimeters -- to comply with new European regulations on Reduced Vertical Separation Minima (RVSM), and the Honeywell Aerospace Mk.VII Enhanced Ground Proximity Warning System (EGPWS) has been chosed as the preferred equipment to comply with Terrain Awareness and Warning Systems (TAWS) regulations. New gyros, a new weather radar with an LCD display, and LCD displays for non-EFIS aircraft will help improve equipment reliability. In addition, several options are being examined to give the BAe 146 a Cat.3 landing capability, including fitting a modified version of the Avro RJ Honeywell Digital Flight Guidance System (DFGS 'Lite'), or developing a Head-Up Guidance system solution. The latter solution, involving a Visual Guidance System (VGS) from Rochester is most likely to be adopted, as it offers a relatively straightforward 'bolt-on' solution that requires fewer aircraft system modifications. The VGS would offer a 50ft decision height/200m runway visual range capability and a 75m runway visual range for take-off. The system has already been selected by American Airlines and Sun Country Airlines for use in the Boeing 737-800s. These upgrades will be offered both individually and as an integrated package. In the latter form, the avionics upgrade program is likely to cost about US$600,000 per aircraft, while the VGS Cat.3 system would cost about $500,000 per aircraft. Some of the avionics upgrades will be available 12-15 months from program launch, while fitting of VGS equipment could begin in late 2001.

CityJet expands BAe 146 fleet
Irish carrier CityJet will add two more BAe 146s to its current fleet of six. The airline has agreed to lease two series 200s from BAE Systems' asset management arm with one arriving in late July and one in late October. Ironically, the two aircraft concerned are currently on lease with CityJet competitor Aer Lingus Commuter. CityJet operates flights from Ireland to the UK and mainland Europe, on its own behalf and on behalf of Air France. [2000-07-13]

Artist's impression of a British Airways RJX-100 (BAE Systems) CityFlyer re-orders Avro RJs, adds RJX options British Airways franchise carrier CityFlyer has placed a firm order for an additional six Avro RJ100s and options for six Avro RJX100s. The six Avro RJ100s will be delivered between November 2000 and April 2001, bringing CityFlyer's fleet of RJ100s to 16. CityFlyer first ordered Avro RJ100s in 1997, and has since placed additional orders at regular intervals. A further repeat order from CityFlyer had long been expected, but had been delayed by management and strategy changes at British Airways. The new RJ100s will replace ATR42s and 72s on routes from the airline's Gatwick base. Although a plan to take over routes currently operated by mainline British Airways has been abandoned, CityFlyer is likely to take over routes to Bordeaux and Toulouse from former British Airways subsidiary Air Liberté (which has been sold to SAir Group). That the RJX-100 commitment is an option rather than a firm order is no doubt a disappointment to BAE Systems, but CityFlyer has taken up all the options it has previously placed. The order brings total sales of the BAe 146/Avro RJ/Avro RJX family to 381 aircraft. [2000-07-19]

BAE Systems expands Regional Aircraft Customer Training Centre
BAE Systems has formally opened its expanded Regional Aircraft Customer Training Centre at Woodford. The center, which offers pilot and maintenance engineer training on the BAe 146 and Avro RJ, was first opened in the early 1990s. It has now received a UKP2.7 million upgrade, including installation of an additional BAe 146 simulator (previously located at Hatfield), six additional multimedia-equipped classrooms, new entrance and reception areas, and additional office space. The center now houses two BAe 146 simulators and an Avro RJ simulator, as well as a variety of other training rigs. (The center also offers training on the Jetstream 31 and 41, and houses a full-motion Jetstream 31/41 simulator.) [2000-07-26]

KLM uk Engineering and AAR to cooperate on BAe 146 maintenance
KLM uk Engineering Limited has signed a five-year agreement with AAR Aircraft Component Services under which AAR will provide component management and repair for KLM uk's eight BAe 146-300s, which are operated by buzz. [2000-08-11]

Airlines announce 146/RJ service to ski destinations
The shortfield capabilities of the BAe 146 and Avro RJ allow it to bring passengers directly to many airports close to ski resorts, avoiding the need for long road transfers from more distant airports. Two airlines have recently announced new or increased service to ski destinations:

• Northwest Jet Airlink operator Mesaba will Airlines will increase its winter services to the ski resort at Aspen, Colorado, during the winter of 2001 by adding a second weekly flight from Memphis. Both flights will be operated by Avro RJ85s -- the BAe 146 and Avro RJ are the only jets capable of serving Aspen. One flight will commence on January 6, with a second flight being added on February 3. Both flights will continue through March 31. Mesaba first started flying to Aspen in 1998, from Minneapolis-St.Paul, a route which is now flown twice daily during the winter season. Service from Memphis began in 1999, with a single weekly flight. Aspen is also served by the 146s of Air Wisconsin.[2000-08-14]
• buzz has announced that it will fly from London Stansted to Chambery, France, from 23 December, with two round trips every Saturday. Chambery is a category B airport, requiring special training. CityFlyer has been flying ski charters to Chambery for several years. buzz will also operate a single Saturday flight to Geneva during the ski season. [2000-08-21]

Chinese airlines ordered to consolidate
The Civil Aviation Administration of China (CAAC) is urging Chinese airlines to consolidate into groupings led by the country's three major airlines Air China, China Southern Airlines, and China Eastern Airlines. Air China operates four BAe 146-100s on domestic services, while China Northwest operates three series 100s and seven series 300s. [2000-08-21]

QANTAS New Zealand takes to the air
BAe 146 operator Ansett New Zealand officially changed its name to Tasman Pacific and began flying as a QANTAS franchise carrier, using the name QANTAS New Zealand. New Zealand's Prime Minister, Helen Clark, was on hand to meet the arrival of the first flight under the new brand, a Wellington-Auckland BAe 146 service on the morning of Monday 4 September. Two of the airline's eight BAe 146-300s have already been repainted in QANTAS colors; the rest of the fleet is expected to be repainted by Christmas. The start-up of QANTAS services was marred by flight cancellations resulting from a shortage of pilots. [2000-09-05]

Avro RJX favored to win British Regional order
Press reports suggest that the Avro RJX is the leading contender in British Regional Airlines' search for a new regional airliner. BRAL has a requirement for as many as 20 aircraft in the 70-110 seat size range, for delivery from early 2003. Together with partner Manx, BRAL currently operates five BAe 146s. The main competitor for the order is Embraer's ERJ-170/190 family (BRAL also operated ERJ-145s). [2000-09-15]

Eurowings BAe 146-200 D-ACFA (BAE Systems/Dave McIntosh) Lufhansa buys stake in Eurowings Lufthansa is buying a 24.9% stake of Eurowings. This stake may be further increased in the future, subject to clearance from anti-trust authorities. Eurowings had a testy relationship with Lufthansa in the past, culminating in a lawsuit for anti-competitive behavior. In recent years, Eurowings has cooperated closely with KLM, providing feed to the Dutch airline's Amsterdam hub. It has also operated 146s on behalf of Air France. The Air France contract ended in late 1999, however, and the relationship with KLM was strained by the latter's potential merger with British Airways, who have their own German subsidiary. In the meantime, relations with Lufthansa have improved, and Eurowings has begun operating two ATR72s on "Team Lufthansa" regional services. This cooperation will now expand, with Eurowings providing services to European destinations from its home-market in North Rhine-Westphalia. At least initially, these services will be operated on a code-share basis, with Eurowings keeping its own identity. [2000-09-21]

airBaltic renews Avro RJ70 leases
Latvian airline airBaltic has extended the leases on its three Avro RJ70. airBaltic leased the three RJ70s, which had formerly been operated by Business Express, in 1996. Two are used on the airline's main route, from Riga to Copenhagen. The third is currently sub-leased to Azzurra Air, but is expected to be taken back into the fleet when the sub-lease ends next year. The length of the new lease not announced, but leases from BAE Systems' asset management arm typically run for five years or more. airBaltic was formed in 1995 by the Latvian Government in cooperation with SAS (which holds a 38.16% stake). [2000-09-28]

Air Botnia Avro RJ85 (Air Botnia) Air Botnia orders Avro RJ85s Finnish airline Air Botnia has announced an order for 5 Avro RJ85s to replace its six Fokker F28-4000s. Air Botnia is a wholly owned subsidiary of SAS. It operates regional services between Finland and Scandinavia. Sveneric Persson, President and CEO of Air Botnia attributed the choice of RJ85 to the type's comfort, operating costs, and reliability. Air Botnia's RJ85s will be configured with 79 seats. Deliveries will begin in April 2001, and all five are due to be delivered by November. Early availability of the RJ85 was an important factor in the type's selection, as was fellow SAS affiliate airBaltic's positive experience with the RJ70; indeed, many members of Air Botnia's management had previously worked for Air Botnia. The two airlines are likely to cooperate on maintenance and other matters. Total orders for the BAe 146/Avro RJ/Avro RJX family now stand at 386, with a further six on option. [2000-09-28]

Malmö Aviation drops Braathens name
Swedish BAe 146 operator Braathens Malmö Aviation has reverted to its former name of Malmö Aviation. Malmö Aviation was acquired by Norwegian airline Braathens in 1998, and adopted the Braathens Malmö name in February 1999, after operations were integrated with those of Braathens Sverige (formerly Transwede). The experience proved short-lived, however. The money-losing operations from Stockholm's Arlanda Airport that had been acquired from the Transwede side of the merger were soon wound down, leaving the airline focused on what had been the previous Malmö Aviation's operations from Bromma. The airline is awaiting delivery of nine Avro RJ100s to replace its fleet of BAe 146-200s. A new color scheme is expected to be introduced when the RJ100s are delivered. [2000-09-28]

BAe 146s again flying for KLM uk
In January, KLM uk transferred its fleet of BAe 146-300s to low-cost subsidiary buzz, and focused its own scheduled services on its Fokker 100 and turboprop fleet. buzz 146s have occasionally been used on KLM uk routes when needed, however. This need is now being formalized -- in order to provide additional capacity on the airline's main route from London Stansted to Amsterdam, a buzz 146 will be assigned to the route from late October to March 2001. As a result, buzz is dropping its 3 times daily service to Hamburg. In March, the 146 will revert to buzz services. [2000-10-04]

Meridiana BAe 146-200 I-FLRA (Stefano Pagiola collection) Meridiana no longer for sale The majority shareholder of Italian airline Meridiana, the Aga Khan, has decided to withdraw his offer to sell the airline. The Aga Khan, who started Meridiana as Alisarda in 1963, has gradually been disposing of his Sardinian holdings and offered the airline for sale in January through Lloyds TSB and KPMG Corporate Finance. Although there was considerable interest, none of the proposals met the Aga Khan's criteria of protecting the interests of the airline and its employees and of sustaining the Sardinian economy. Meridiana operates four BAe 146-200s from Florence to Italian domestic and European destinations. It had closely examined the possibility of replacing the 146s with RJXs, which would allow it to operate its longer routes to London and Amsterdam without weight restrictions even on hot days, but the proposed sale had put a decision on hold. [2000-10-12]

First production Honeywell AS977 engine (BAE Systems) G.E. Buys Honeywell The manufacturer of the engines used on the BAe 146, Avro RJ, and Avro RJX is set to once again change names. In a surprise move, General Electric Company has agreed to acquire Honeywell International for $45 billion in stock. Honeywell had been widely expected to merge with GE rival United Technologies. The deal must be approved by US and European regulators. The BAe 146's engine was originally built by Avco Lycoming, but the company was acquired by Textron and traded as Textron Lycoming. A further sale saw the AlliedSignal brand applied, and yet another brought the engines under the Honeywell name. GE has indicated it will use the "GE-Honeywell" brand on some of its products. GE is itself a major producer of aircraft engines, but all of its engines are substantially larger than those produced by Honeywell, making the two engine ranges very complementary. [2000-10-23]

Italian start-ups eye BAe 146
Several new airlines are considering adding to Italy's already sizeable BAe 146 and Avro RJ fleet. Most advanced is Goldwing Airlines, which has already acquired a former Air Botswana BAe 146-100 and is planning to begin operations from Taranto to Roma Fiumicino (twice daily) and Milano (daily) on 20 December. A second BAe 146, this time a series 200, is expected to be acquired in spring 2001. Goldwing had originally planned to fly from Palermo, but the entry of British Airways franchisee National Jet Italia into that market led to a change of plans. Also in Sicily, Air Sicilia is considering replacing its two leased Boeing 737-200s with four BAe 146-200s. Air Sicilia recently began service from Catania and Palermo to Bologna, using a low-fare model patterned on Southwest and EasyJet. Meanwhile, a coalition of Genoa-based companies is examining the possibility of starting an airline to fill the gap left by Alitalia's reduction of service to the city and to provide night-time cargo services. The BAe 146 is one of the aircraft types under consideration, along with Canadair Regional Jets. Four Italian airlines already operate BAe 146s and Avro RJs: Azzurra Air flies five RJ70s and three RJ85s on behalf of Alitalia Express; Meridiana operates four BAe 146-200s from Florence; National Jet Italia flies three BAe 146-300s on British Airways franchise flights from Rome; and Mistral Air uses two BAe 146-200QTs on domestic cargo flights. [2000-10-28]

Alitalia codeshares on Meridiana BAe 146s
Alitalia began codesharing with Meridiana on the latter's routes from Florence to Barcelona, London Gatwick, and Paris Charles de Gaulle -- all of which are operated by BAe 146-200s. The agreement took effect on 28 October. The move allows Alitalia to offer direct flights from Florence. Previously, Alitalia had only offered connecting flights, including via its Malpensa hub using Azzurra Air Avro RJs operating under the Alitalia Express banner. [2000-10-31]

BAE Systems holds RJX Summit in Florence
BAE Systems held its second "Avro RJX Summit" in Florence on 30 October. Like the previous Summit, at which the Avro RJX program was launched and which was held at London City Airport, the venue of this briefing was chosen to emphasize the RJX's short-field capabilities. Nick Godwin, BAE Systems' Vice President Marketing for Regional Aircraft, described progress on the RJX program. First flight of the RJX-85 is scheduled for February 2001, with the RJX-100 following in April. Certification is now scheduled for December 2001 -- slightly later than originally planned due to delays in engine development. [2000-10-31]

Northwest bids to buy Mesaba
Northwest Airlines has offered to buy Mesaba for $13 per share. Northwest already own a 28% share of Mesaba, which operates as Northwest Airlink. Mesaba's fleet includes 36 Avro RJ85s. Northwest's move appears to have been an attempt to pre-empt a possible bid from Phoenix-based Mesa Air Group Inc. Mesaba is studying Northwest's offer. [2000-11-03]

Avro RJ100 in Malmo's new colors. (BAE Systems) Malmö Aviation receives first Avro RJ100 After a long wait, Malmö Aviation has begun receiving the nine Avro RJ100s it ordered from BAE Systems' Asset Management arm to replace its 146s. For the airline, the choice of the Avro RJ100 is a logical one, as the 146 and the RJ are the only jets allowed to operate from Bromma. The 112-seat RJ100 offers a substantial increase in capacity over the 96-seat 146-200, allowing the airline to better utilize its scarce Bromma slots. Switching from the 146 to the newer RJ model promises to take care in one fell swoop of the many avionics upgrades that would have been required to continue operating 146s, while also providing the advantages of the RJ's more reliable LF507 engines. The corrosion problems discovered on the former SAM RJ100s delayed deliveries repeatedly. Nine of Malmö Aviation's current BAe 146-200s will be eventually be returned off-lease to BAE Systems' Asset Management arm as the RJ100s arrive. [2000-11-15]

CityFlyer to disappear in Gatwick shake-up?
As part of its shake-up of operations at its loss-making London Gatwick hub, British Airways is planning to bring Avro RJ100 operator CityFlyer "more closely together" with its other subsidiary, European Operations at Gatwick (EOG). Many Gatwick-based longhaul flights will be suspended or transferred to Heathrow, with Gatwick operations focusing on shorthaul services. The move to integrate CityFlyer and EOG are part of the latter effort. Given the relative size of CityFlyer and EOG, and the much stronger voice of the latter's unions, 'integration' is likely to mean Cityflyer being swallowed, although how absorbing low-cost, consistently profitable CityFlyer into high-cost, consistently unprofitable EOG will improve BA's financial performance is unclear. An earlier plan to transfer routes from EOG to CityFlyer foundered in the face of union opposition. [2000-12-10]

British Airways reportedly eyeing British Regional
The Financial Times is reporting that British Airways is negotiating to take over British Regional Airlines Group PLC, which includes BAe 146 operators British Regional Airlines (BRAL) and Manx. BRAL already operates as a British Airways franchisee. [2000-12-14]

Goldwing begins operations
Italian start-up Goldwing Airlines began operations on December 20 with a twice daily flight from Taranto, in southern Italy, to Roma Fiumicino and a single daily flight from Taranto to Milano Malpensa. Goldwing was planning to begin service using a BAe 146-100 leased from Air Botswana, but the aircraft was not ready in time. Instead, initial flights were flown using a BAe 146-200 wet-leased from Flightline and then by a SAAB 2000 wet-leased from Med Airlines. Goldwing had originally intended to fly from Palermo, but relocated to Taranto to avoid going head to head with British Airways-backed National Jet Italia. [2000-12-29]

Continue to January 2001 news.

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