Record Year for BAE Asset Management

The emergence of BAE Systems asset management group as an aircraft broker and aviation services company will be accelerated as their operations are blended with those of BAE's regional aircraft division. The asset management groups are responsible for leasing or reselling jet and turboprop regional aircraft that for one reason or another end up back in the hands of the manufacturer.
So successful have the BAE groups been-the US-based turboprop operation reduced its inventory last year by 56 aircraft to a record low of just 12 aircraft standing idle-that they are turning their expertise in leasing and financing to third-party brokerage.

"That's the message for the longer term," marketing vice president Nick Godwin told Show News on the eve of Asian Aerospace 2000. "This will be the start of a process that will take in other companies, particularly on the sale of services," he explained. Among them: Saab's asset management business that manages an inventory of Saab 340 regional airliners around the world.

"That would be very complementary to our own business," Godwin said. Such a combination was discussed last year before talks lapsed. But acquiring those operations remains a goal for BAE Systems, which owns 35% of parent company Saab AB.

Meanwhile, the group is focusing more attention on regional jets. It already has 107 jetliners (76 BAe 146s and 31 Avro RJs) under management. Merging its operations with the regional aircraft division will better help BAE Systems market the new Avro RJX, as well as aid directly in trade-ins that many airlines might require as they switch from BAe 146s and RJs to the RJX.