LUFTHANSA RE-AFFIRMS COMMITMENT TO AVRO RJ85 FLEET

Lufthansa has powerfully endorsed the long-term market acceptability and competitiveness of the Avro RJ regional jetliner with the decision for its Lufthansa Cityline subsidiary to continue operating its fleet of 18 RJ85s well into the second half of this decade.

This decision by the premier German carrier comes at a time of considerable market uncertainty and represents a ‘minimum-risk' solution to its 80-100 seat regional jet fleet requirements.

Lufthansa's re-commitment to the Avro RJ follows similar recent endorsements by other carriers such as THY Turkish Airlines and FlyBE, both of which have contracted to continue operating Avro RJ/BAe 146 fleets.

Welcoming Lufthansa's decision, Mr Alan Fraser, Managing Director of BAE SYSTEMS Regional Aircraft said today: " This significant vote of confidence by a world-leading airline underscores our belief that the Avro RJ and BAe 146 family is going to remain highly competitive for many years to come. We believe that new generation regional jets are going to offer marginal improvement - and in some instances less capability - for a huge increase in financial risk and commitment - this at a time of considerable market uncertainty. We believe that for many airlines the best option very often is to do as Lufthansa has done and re-commit long term to the Avro RJ.�

Lufthansa's decision also means a continuing revenue stream to BAE SYSTEMS Regional Aircraft for on-going spares, engineering and customer support.

To reflect the difficult and competitive market environment in Germany, Lufthansa has elected to increase capacity on its RJ85s by switching to a six-abreast layout (100 seats) from its current five-abreast (85-seat) layout.