BAE Systems Sets Up New Regional Aircraft Business Unit

To help promote the sales of its regional jet aircraft, BAE Systems has established a new Trading and Services unit to handle financing, marketing and other services to customers.

The organization will be headed by two BAE VPs: Jon Skirrow, based in Hatfield, U.K., and Michael Canzian, based in the United States. The company has identified four focus areas: aircraft re-marketing and trading, finance services, lease management services, and technical services.

In the re-marketing and trading area, BAE plans to build on existing leases and brokerage arrangements in which it has struck deals for third-party customers. Five deals in this area have already been announced, including an exclusive mandate from Chrysler Capital to broker two BAe 146-200s, one from International Aviation Advisors to broker a 10-seat Jetstream 31, and one from Corporate Flight Management to broker two Jetstream 31s.

For its finance services push, BAE is negotiating for financing aircraft and cooperative deals with banks and financial institutions. They would build on several such arrangements already negotiated. For lease management, the company is looking at the feasibility of managing the leases of aircraft fleets of a number of banks.

Last, the company wants to build on the 300 refurbishments and customization projects and other activities in growing its technical services work. BAE recently aided National Jet Italia with inspections of BAe 146-300s and their technical refurbishment to British Airways specification. "It is the intention now of the Trading and Services team to offer this expertise to the wider aviation market," the company said.

By Robert Wall