Corporate Connections - European Business Air News

Corporate aircraft market and conversion news for BAE Systems Regional Aircraft customers • June 2008
Introducing the ABJ
A different type of business
jet for today’s market
See page 06
CORPORATE
Connections
Targeting the market
Regional Aircraft identifies its key
marketing targets for the ABJ
Turn to page 08
Spotlight>
Stunning interior design for the Hemus Air RJ70 that has
been created by cutting edge UK design house Design Q.
Both Design Q and Inflite Engineering Services, one of the
UK’s leading corporate aircraft completion, maintenance,
repair and overhaul centres, are teaming up with BAE
Systems Regional Aircraft to provide innovative, modern
design and top quality customised VIP conversions for the
Avro Business Jet.
More info: see page 04
Take-off for
Avro Business Jet
Market success
The past year has seen demand
for the Avro Business Jet reach an
all-time high. BAE Systems
Regional Aircraft revealed at the
European Business Aviation
Convention & Exhibition (EBACE)
in Geneva that at least six more of
the aircraft will enter service this
year spread between five VIP
operators.
The Avro Business Jet (ABJ) is
the brand name for corporate
versions of the BAe 146/Avro RJ
family and Andy Whelan, Sales
Executive for BAE Systems
Regional Aircraft said at EBACE:
“We feel the recent success of
the ABJ is due to the aircraft’s
exceptional operational
performance, large cabin and
competitive pricing.”
Mr Whelan added that there
are around 23 BAe 146/Avro RJs
that are in service or being
converted for a variety of VIP/
Executive roles – representing six
percent of total production of the
aircraft.
Above: the Bahrain Defence Force now operates three Avro Business Jets
Both BAE Systems and third
party organisations have had
success in placing the ABJ into
new corporate markets, resulting
in the following operators
bringing the ABJ into service
during 2008.
• Bahrain Defence Force (BDF)
which took delivery in mid May of
an Avro RJ100 configured in a VIP
layout in the forward cabin and
with airliner seating in the rear
© BAE Systems 2008. All rights reserved. The information contained within this newsletter is of the nature of general comment only and does
not constitute a warranty or condition of any contract. BAE Systems accepts no liability for the misuse or misinterpretation of such information.
pwk_0361 Produced by the Graphics and Media Team, Customer Information, BAE SYSTEMS Regional Aircraft, Prestwick
Tel: 01292 672037 Email: [email protected]
cabin for support staff. This
aircraft was converted by Inflite
Engineering Services at LondonStansted Airport and joins two
CONTINUED ON PAGE 02
02 CORPORATE CONNECTIONS
June 2008
Welcome>
Welcome to Corporate
Connections, the first edition of
a new specialist newsletter that
BAE Systems Regional Aircraft
has created specifically to bring
to the corporate aircraft
marketplace, the latest news and
developments relating to the Avro
Business Jet.
Over the course of the
production life of the aircraft, a
number have been converted from
the production line as new and
delivered to a range of VIP
operators. However, in more
recent times, various pre-owned
aircraft have also found new
homes in the corporate market
and it is clear that this is a
growing market for the aircraft.
The title, Corporate
Connections, is deliberate. It is
the policy of BAE Systems to
bring to this market a range of
introductions to its new clientele.
In this issue, you will find details
of two connections that we are
pleased to announce. We are
delighted to link up with Design Q
who are one of the UK’s and
probably world’s leading aircraft
interior design houses with a
wealth of cutting edge experience
in creating modern innovative
interiors that reflect the
personality and life style of high
net worth aircraft owners.
We are also pleased to team
up with Inflite Engineering
Services of the UK to provide
options for customer conversions.
Inflite probably have more
experience than any other
organisation in MRO for the BAe
146/Avro RJ family and, as a well
established corporate conversion
house, have built up an excellent
reputation for top quality and costeffective work.
We hope you enjoy reading
Corporate Connections and look
forward to receiving
any comments or
feedback you
might have.
Take-off for Avro Business Jet
FROM PAGE 01
RJ85s that are already in service
with the BDF;
• Hemus Air of Bulgaria, which
has acquired an RJ70 for
conversion into a full corporate
Above: Hemus Air is having an RJ70
converted into a corporate jet
interior for use by the airline’s
parent company, the Varna-based
diversified industrial group TIM,
which has extensive business
interests across banking,
insurance, pension funds and oil
and gas prospecting. The interior
has been designed by Design Q
and features a modern, innovative
mood-lit cabin with a double club
4 executive seating and dining
and divan area, with a separate
12-seat business class seating
cabin for company support staff.
The aircraft is being converted by
Inflite Engineering Services at
London Stansted Airport and
delivery is planned for the third
quarter of this year;
• Dubai Air Wing which has
acquired two RJ85s for
government duties, one of which
is being converted into a full VVIP
layout for delivery later this year.
The second aircraft will feature
normal airliner seating. Both
aircraft are being converted at
Avmax in Calgary, Canada. BAE
Systems Regional Aircraft has
won modification contracts for the
major VIP upgrade aircraft;
• First Kuwaiti Trading &
Contracting has bought a BAe
146-200 which will be used as a
corporate shuttle for the transport
of company personnel in support
of construction projects in the
Middle East and Asia;
• An undisclosed European
operator who has purchased an
RJ70; discussions on the
conversion options for this aircraft
are ongoing and will be
announced later. However, it is
anticipated that this aircraft will
be offered to the European
executive charter market and as a
corporate shuttle aircraft.
Andy Whelan added that BAE
Systems was working on several
other potential ABJ deals and
explained that the market
upsurge looks set to continue for
of innovative corporate layouts
which young entrepreneurial
owners are willing to personalise
and customise the interior to
their own tastes. The ABJ also
offers unique airfield
performance and remote
operational capability which
allows operator access to more
Above: the ABJ offers unique airfield performance
the foreseeable future. “We and
other sellers have found
customers that appreciate the
exceptional value for money
represented by this aircraft,
offering an airliner-sized cabin
for the price of a small business
jet. This large cabin offers
tremendous flexibility for a range
‘
CUSTOMERS APPRECIATE THE
EXCEPTIONAL VALUE FOR MONEY,
OFFERING AN AIRLINER-SIZED CABIN FOR
THE PRICE OF A SMALL BUSINESS JET
Andy Whelan, Sales Executive
Above: Andy Whelan, Sales Executive,
BAE Systems Regional Aircraft
’
remote locations or city centre
airports”.
He concluded: With immediate
availability from the BAE Systems
portfolio, an attractive acquisition
cost, long-service life, support
from the Original Equipment
Manufacturer and the benefits of
our connections to a cutting
edge aircraft interior design
house and cost-effective, quality
completion centre, we are
confident that the market
upswing for the Avro Business Jet
can only get stronger.”
CORPORATE CONNECTIONS
June 2008
03
BDF takes
delivery of
third Avro RJ
Brings fleet to three aircraft
Above: one of the aircraft’s three-seat sofas
New delivery
Mid May saw the delivery of the
Bahrain Defence Force’s (BDF)
third Avro RJ after a three month
conversion programme at Inflite
Engineering Services at London
Stansted.
This aircraft is an RJ100 and it
joins two smaller RJ85s that have
been in service with the BDF
since the first aircraft was
delivered new to the customer in
November 2001 and was
followed by a pre-owned
example in January 2005.
The BDF originally chose the
Avro RJ for its outstanding
airfield performance and
operational flexibility and uses
its fleet for multiple roles
including various transport tasks.
The bigger space afforded by
the RJ100 has meant that a
comprehensive VIP interior has
been installed. In the forward
cabin are located two Club 4
positions fitted with Hi-lo tables,
plus two ‘lay-flat’ seats and also
two three-seat sofas fitted with
long Hi-lo tables. Throughout
this area mood lighting has been
installed and the overhead bins
removed and transition panels
fitted. Sidewalls, covings, ceiling
and transition panels are
covered in ultra leather.
The mid cabin area now
houses a wardrobe, dressing
area and a toilet, while the rear
cabin has 34 airline seats for
support staff.
The BDF also specified a
number of technical
modifications for the aircraft
including pannier fuel tanks,
forward and rear airstairs, new
front galleys and electronic
flight bags in the flight deck.
Above: the larger space afforded by the RJ100 has enabled a comprehensive VIP interior to be installed. Inset: an example of the mood lighting
Spotlight
04 CORPORATE CONNECTIONS
June 2008
The one-stop shop
BAE Systems teams with Design Q and Inflite
Engineering Services
Company strategy
In seeking to further penetrate the
corporate aircraft market with the
Avro Business Jet, Regional
Aircraft has developed a strategy
of providing ‘connections’ for its
EBACE that it has teamed with
premium UK design consultancy
Design Q to offer modern,
contemporary and stylish interior
designs and also with deeply
experienced corporate conversion
centre and MRO, Inflite
the growing market interest in the
Avro Business Jet, we decided to
find a modern, cutting edge
design house that we can
recommend to clients who buy the
aircraft and who we have
confidence in to develop exciting,
Above: Design Q styling concept for a Hemus Air RJ70
clients and to offer what it terms as
a ‘saleable proposition’ (aircraft,
design and conversion) to create a
‘one-stop shop’ for the end user.
The aim has been to create a
situation where a corporate
customer can have a personalised
design made for them by probably
one of the leading cutting edge
interior designers, blended with a
conversion centre which is vastly
experienced not only with the
product, but also the conversion
process on the ABJ. The aim is to
have a top-notch customer
experience so that clients can
enjoy the process and also have a
quality finished product.
To bring this strategy to life
Regional Aircraft announced at
Engineering Services, to provide a
top quality service to ABJ
customers.
The link up with Design Q is
already bearing fruit in that the
RJ70 currently being completed by
Inflite Engineering Services at
London Stansted for Hemus Air of
Bulgaria is the first with a Design
Q-inspired interior. It features a
modern, innovative mood-lit cabin
with a double club 4 executive
seating and dining and divan area,
with a separate 12-seat business
class seating cabin for company
support staff.
Announcing the link with Design
Q at EBACE Andy Whelan, Sales
Executive for BAE Systems
Regional Aircraft said: “Because of
WE DEVELOP A STRONG RELATIONSHIP
THE VIP CUSTOMER TO HELP CREATE
‘WITH
A LAYOUT AND MOOD THAT WILL REFLECT
THE OWNER’S PERSONALITY
’
Gary Doy, Director, Design Q
individual interiors for aircraft
owners and to work with them with
passion and commitment. Design
Q fits the bill admirably and we
look forward to a long and
successful relationship on future
ABJ projects”.
Design Q has a proven
capability in VIP and commercial
aircraft design and has built up an
enviable client base across the
transport sector. This includes the
widely acclaimed Upper Class
seat for Virgin Atlantic, Cathay
Pacific for a redesign of all classes
through the airline’s fleet of
different aircraft, a new Global
Express flight deck design for
Bombardier, the Celebrity Jet in
collaboration with Lufthansa
Technik, and a range of aircraft
and helicopter VIP interiors for
private high-wealth individuals.
Founded in 1997 by Howard Guy
and Gary Doy, formerly principal
designers at Jaguar Cars, the
consultancy has also kept its links
with the automotive sector and
works for Ferrari and Maserati.
Gary Doy explained the
philosophy behind Design Q’s
offering to the VIP market. “In
recent years there has been a shift
in values and aspirations of the
VIP owner. In part this is due to
younger and more design-aware
customers entering the
marketplace who would like the
interior of their aircraft to reflect
the same values they have when
buying a luxury car, yacht, or new
home. They are looking for both a
more contemporary and high
quality interior solution and there
Above: RJ70 VIP concept showing an example of ‘mood lighting’
FACT FILE DESIGN Q HAS A PROVEN CAPABILITY IN VIP AND COMMERCIAL AIRCRAFT DESIGN
CORPORATE CONNECTIONS
June 2008
Above: Gary Doy of Design Q (left) with
Stewart Cordner, Deputy Vice President
Sales and Marketing, BAE Systems
Regional Aircraft
Above: ABJ control yoke styling
is a trend towards more open plan
layouts and modern surface
finishes”.
He continued: “this is an
exciting development and Design
Q is committed to developing a
strong relationship with the VIP
customer to help create a layout
and mood that will reflect the
owner’s personality. This is what
we have done with the Hemus Air
RJ70 and we know that we can
achieve highly individual work
with this aircraft because its large
cabin offers untold opportunities.
We are delighted to be working
with BAE Systems to offer
innovative, cutting edge interior
design to the Avro Business Jet
and we look forward to working
with new ABJ customers over the
coming years”.
Regional Aircraft also
announced at EBACE that it has
teamed with Inflite Engineering
Services Ltd, one of the UK’s
leading corporate aircraft
completion, maintenance, repair
and overhaul centres and FBO, to
carry out high quality, customised
VIP conversions on the Avro
Business Jet.
Andy Whelan, said: “As market
interest in the Avro Business Jet
increases, we wanted to ensure
that we could offer our corporate
customers access to a highquality, cost-effective completion
centre with deep knowledge of
our aircraft with reasonable lead
times in a market where it is quite
normal for completion queues to
stretch out for years. Inflite
Engineering Services has years of
experience on the BAe 146/Avro
RJ and has carried out an
increasing number of high-quality
corporate conversions on the
aircraft.”
Founded in 1983, the Inflite
WE HAVE
‘UNBEATABLE
EXPERTISE ON THIS
AIRCRAFT
’
Steve Buckingham, Managing Director,
Inflite Engineering Services
Above: Inflite has modern manufacturing
facilities at three UK locations
Group is a prime supplier to the
aerospace market and has grown
steadily to reach an annual
turnover in excess of £45 million.
The Inflite Divisions are based in
comprehensive, new, purposebuilt manufacturing facilities at
05
Director of Inflite Engineering
Services said: “we are delighted to
work closely with BAE Systems on
the Avro Business jet programme.
We have unbeatable expertise on
this aircraft and we recently
celebrated the 500th ‘C’ Check we
Above: Inflite’s Stansted Executive jet Centre sets the benchmark for facilities and service
Stansted and Chelmsford in Essex
and in Manchester. The total
surface area occupied by the
Group exceeds 600,000 square
feet, and is one of the largest
privately owned facilities of its kind
in the UK.
From the start the group has
provided maintenance services to
the corporate market at its London
Stansted and London Southend
Airport bases. For many years the
company has concentrated on
providing services for the BAe
146/Avro RJ, but it also caters for
many other corporate, regional
and mainstream aircraft types for
which it performs modifications,
avionic and cabin upgrades,
conversions, line and heavy
maintenance, AOG support and
storage programmes.
Steve Buckingham, Managing
have carried out on the BAe
146/Avro RJ.”
He added: “During the course of
recent years we have also built up
our capability and expertise in the
top quality corporate conversions
market. We work closely with
design houses to produce many
varied interiors and In-flight
Entertainment (IFE) options to
meet customer requirements. Our
most recent programme was for
the Avro RJ100 for the Bahrain
Defence Force and we are
working closely on the Hemus Air
RJ70 conversion in collaboration
with BAE Systems and Design Q.”
In addition, Inflite has an
Executive Jet Centre at Stansted,
which is widely recognised as one
of the leading FBOs in Europe,
setting the benchmark for facilities
and service.
06 CORPORATE CONNECTIONS
June 2008
The ABJ
A different type of business jet
Strong customer retention
The Avro Business jet has many
attributes that find favour with its
clientele and results in long
customer retention. Over the
past 20 years only one aircraft
has ever been sold by an owner
(UK Ministry of Defence – sale
of one Royal Squadron aircraft to
Airfast/Eagle of Indonesia).
Over the production life of the
BAe 146/Avro RJ family a number
of aircraft were produced from
new for the VIP role. The most
famous of these are arguably the
original three BAe 146-100s that
were delivered to The Queen’s
Flight of the Royal Air Force.
Now known as No.32 (The
Royal) Squadron, the two
remaining aircraft are based at
RAF Northolt close to London
and are kept very busy carrying
out VIP transport duties for the
UK Royal Family and
Government Ministers.
Building on the strong role
model created by the use of the
aircraft by the UK Royal Family,
BAE Systems was able to sell a
number of aircraft – dubbed
The Statesman – to several
governments worldwide. These
all remain in service, though
sometimes operated by private
entities or by the national flag
carrier, such as Pelita in
Indonesia which uses an RJ85 to
fly the country’s President and
one of the three Uzbekistan
transportation requirement.
In parallel with sales of newbuild aircraft, the Asset
Management arm of Regional
Aircraft has also had success in
Above: Formula 1 operates two BAe
146-100s in a corporate role
Above: BAe 146-100 in a VIP role operated by No 32 (The Royal) Squadron of the RAF
Airways RJ85s that is fully
configured as a VIP aircraft.
More recently, one of the last
Avro RJs off the production line
was delivered to the Bahrain
Defence Force and this sale of
an RJ85 led to two pre-owned
examples (RJ85 and RJ100) also
being delivered to this
customer. Neighbouring
emirates Abu Dhabi and Dubai
have also selected the aircraft
for their regional VIP
Above: One of Uzbekistan Airways three
Avro RJ85s is configured as a VIP aircraft
placing the aircraft into a variety
of corporate roles. One Series
100 was sold to Formula 1, this
organisation has since acquired
a second aircraft. These aircraft
have normal airline seating at
the rear of the cabin and are
CORPORATE CONNECTIONS
June 2008
used to transport F1 TV crews
and executives around the
European Grand Prix circuits.
The front compartment has a
club four executive seating
area.
Another pre-owned BAe 146100 was sold to Montex Drilling
of the USA and this aircraft was
converted into a full executive
layout with divans and
occasional seating. It is used to
transport the company
President and senior
management.
BAE Systems Corporate Air
Travel itself uses two BAe 146s
as corporate shuttles,
transporting staff between its
own business sites and also to
international partner locations.
An RJ100 has also been leased
to a major industrial company
with 80 seats for use in the
corporate shuttle role.
There is also an active thirdparty sales market for the
aircraft with recent additions to
the fleet being recorded by
First Kuwaiti Trading and
Contracting, the Dubai Air
Wing and several other
customers.
07
Key attributes of the Avro Business Jet
Market advantages
Although not a business jet in the
traditional sense, the ABJ has
secured a valuable and
increasing niche and has a
number of key advantages both
in terms of acquisition and
operation.
One key feature is the
immediate availability and
competitive pricing of the
aircraft. BAE Systems Regional
Aircraft has a number of aircraft
available now with more
becoming available in 2009.Once
commercial agreements are in
place, deliveries can be made
relatively quickly depending on
the customer's
specification.Whatever the
customer's choice, Regional
Aircraft can provide the
connections to Design Q and
Inflite Engineering Services, to
create a cutting edge interior
layout and conversion and
maintenance within a realistic
timescale.
The large cabin interior –
possibilities for owners/operators
of these aircraft to access remote
airports close to their final
destinations, or to get in and out
of ‘down-town’ city centre
airports.
Having the ability to operate
into city centre airports means
Above: BAe 146 LCD flight deck
that the aircraft has to be quiet.
Dubbed the ‘whisperjet’ for years
the ABJ is fully Stage 3 noise
compliant and is capable of
meeting the proposed Stage 4
noise limits. This fact allied to
the point that there are plenty of
hours/cycles left on the airframes
and with a Life Extension
programme in place to carry the
aircraft up to 80,000 cycles,
means that at typical corporate
aircraft utilisations this will
ensure a long service life.
Other factors that clients are
finding important are the
aircraft’s inherent reliability, its
on-condition airframe and its
operational independence from
Ground Services Equipment –
another virtue when operating to
remote locations.
Over the years BAE Systems
has developed a series of
modifications for the aircraft, a
number of which are ideal for
corporate operators. These
include gravel runway kits (with
Kevlar, underbelly paint, beacon
covers and mud guards) to allow
operations into unsurfaced
Below: independence at poorly equipped
airfields
airfields. There are also pannier
fuel tanks, improved hydraulic
bay sealing, VIP toilets, a live
animal bay for the carriage of
pets and LCD flight deck flat
panel displays.
Above: unsurfaced airfields operation
Above: the BAe 146/Avro RJ is renowned
for its exceptional airfield performance,
especially the ability to operate into city
centre airports whilst meeting strict
noise levels
almost the same cross-section as
a Boeing BBJ – means that there
are tremendous opportunities for
flexible refurbishment
opportunities. Interior space and
big luggage holds are strong
features for clients travelling with
family members.
An undoubted advantage of
the aircraft is its exceptional
airfield performance. The BAe
146/Avro RJ is renowned as the
jetliner than can get into airfields
that no other aircraft of its size is
able to do. This ‘hub-busting’
ability opens up many
‘
AN AIRLINER SIZED CABIN FOR THE PRICE
OF A SMALL BUSINESS JET
’
08 CORPORATE CONNECTIONS
June 2008
Targeting the market...
Key market sectors
identified
BAE Systems is taking a multipronged approach to finding new
customers for the Avro Business Jet
and is targeting several areas for
potential ABJ sales or leases. These
include VIP operators of ageing
converted jet airliners, some of
which are around 40 years old, and
including such types as Tupolev Tu134s, DC-9s, Fokker F28, BAC OneEleven and Boeing 737-200. In
many cases noise regulations are
starting to affect operations of these
aircraft, fuel economy is poor
compared to more modern types,
and in some cases product support
can be increasingly difficult.
BAE Systems is also targeting
• business/corporate and
corporate shuttle applications,
Typically used by large
corporations who have a
demanding and extensive travel
profile in order to support their
business;
• executive charter roles. These
high net worth individuals and
entrepreneurs, large corporations
with a demanding travel profile,
charter companies, and airlines that
have a requirement for an executive
operation.
The company has identified three
Below: full VIP interior
Above: first class executive charter layout and insert: executive shuttle configuration
different market sectors for the Avro
Business Jet, these are:
• private use, mostly VVIP ,
typically used by Governments,
Royal Families and high net
worth individuals;
are mostly executive/first class
configurations used by AOC
operators serving the business
community.
There have been sales into all
these sectors in recent times.
...and committed to the market
As part of its commitment to
the corporate aircraft market,
BAE Systems Regional
Aircraft has taken a
conscious decision to join
some of the leading industry
trade bodies that serve the
industry well.
The strategy the business
is following is to join those
regional bodies that most closely
ally to current market penetration
of the ABJ and potential for the
foreseeable future.
Therefore, Regional Aircraft
has joined the European
Business Aviation Association
(EBAA) and through this is
participating at EBACE for the
second year running. It has also
joined the Middle East Business
Aviation Association (MEBAA)
and will be participating at the
forthcoming Middle East
Business Aviation exhibition in
Dubai (November 16-18).
Regional Aircraft is also
planning to participate in some
form at the important National
Business Aviation Association
gathering at Orlando, Florida
(October 6-8).
FACT FILE THE AVRO BUSINESS JET (ABJ) IS THE BRAND NAME FOR CORPORATE VERSIONS OF THE BAe 146/AVRO RJ