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BAE to quit the RJ business

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BAE to quit the RJ business

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Old 27th Nov 2001, 12:28
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Post BAE to quit the RJ business

So sad to see this news so soon after the Crossair crash.

BAE Fires 1,669, to Take $353 Mln Charge to Scrap Regional Jets

London, Nov. 27 (Bloomberg) -- BAE Systems Plc, Europe's No.
1 defense company, said it will fire 1,669 workers and take a 250
million pounds ($353 million) charge as it stops making regional
jetliners as air travel slows after the Sept. 11 U.S. attacks.
"It has been concluded that our regional jet business is no
longer viable in this environment,'' BAE Chief Executive John
Weston said in a statement.
The U.K. company said the jobs to go will be at four sites in
England and one in Scotland that are involved in making the
regional planes and also parts for larger jetliners.
Demand for air travel has slowed by up to a third following
the U.S. attacks and the war in Afghanistan. BAE's regional jet
business was already producing fewer planes than major competitors
Bombardier Inc. of Canada and Brazil's Empresa Brasileira de
Aeronautica SA, or Embraer.
BAE said a charge against the closure of its regional jet
business will be taken in the current year's accounts. It said its
financial performance this year is otherwise going "as planned,''
though some units will see profit fall next year.
The company said its aerostructures, avionics and North
America activities will see their operating results reduced by
around 25 million pounds in 2002 after being hurt by the fall in
demand for commercial aircraft.
Job losses from the closure of the regional jet business will
come at plants in Woodford, Chadderton, Salmesbury and Filton,
England, and at Prestwick, near Glasgow, Scotland, Phil Soucy, a
BAE spokesman, said in an interview. Prestwick also makes
structures for Boeing jetliners.
BAE, which owns 20 percent of European planemaker Airbus SAS,
also said that deliveries of Airbus planes in 2002 will be cut to
300, confirming goals already set by European Aeronautic Defense
and Space Company, which owns 80 percent of Airbus. Airbus can be
profitable at that level, it said.
BAE said that its core defense units are "progressing
well.''
The maker of Eurofighter combat jets shed 25 percent of its
market value in January when it forecast little growth this year
on slow military sales.
 
Old 27th Nov 2001, 12:54
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Red face

Looks like the end of the road for the 146/RJ/RJX....the last Bristish-built jet airliner.

Full details here

BAE Systems Regional Aircraft Press Release

Very sad news.

Lots of ramifications for all sorts of current operators, not least those at BE I suspect.

[ 27 November 2001: Message edited by: Wycombe ]
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Old 27th Nov 2001, 14:57
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I've heard a whisper from a pretty reliable source that BAE WILL build the BE (and maybe the two for Druk) RJXs, but since this means continuing with the certification programme dunno how likely that is. If not, I guess Embraer will be announcing some new EMB170 orders shortly.
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Old 27th Nov 2001, 15:21
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The press release is clear that the programme will finish. No RJX's into RPT service. This also consigns the manufacture of Civil aircraft in the UK to the dustbin. RIP DeHavilland, Gloster, AVRO Handley Page etc...
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Old 27th Nov 2001, 15:24
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Go to the BAe link in "wycombes" post above,the way I read that is that no RJX a/c will be built and only the "old" Rj's on the line will be sold. Anybody inside BAe able to say if the British European and Druk order will complete?
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Old 27th Nov 2001, 15:47
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Sad news indeed. And a strange moment to quit. Wonder what for they kept it going over all those years. Latest improvements did look good.
Who will be next? The 717?
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Old 27th Nov 2001, 16:00
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....but can the Jungle Jets reach those hard to get to places that only the 146/RJ could?

Love it or hate it, it's the only aircraft that can lift 100 pax from a 1300m runway. Yes, it's a niche aircraft, but there are many operators who have used it in that niche that will now have nothing to replace it with.
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Old 27th Nov 2001, 16:57
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Embraer's 170 is intended to fit into LCY. Maybe the 175 as well. The 190 and 195 not. Who will do the Avro's jobs then?
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Old 27th Nov 2001, 18:37
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Discussions are still ongoing about whether or not the currently ordered RJX aircraft will be built. Nothing has yet been decided about those orders. Substantial deposits have been paid, for a start.

Not sure it would be such a good idea to go ahead with purchasing what would obviously be an orphan though...
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Old 27th Nov 2001, 18:42
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I've just had an email from "a significantly placed" contact at BAE who tells me that contrary to what the other source was alleging the RJX stops here, thas it no more. They may flog one of the RJ85s they've got left to Druck Air but that's not yet clear.

The EMB170 is designed for LCY, Lugano and Florence operations (part of the deal with Xair) the 175 will not be - its designed for airlines that don't need the short field performance and want to trade off that performance against a bit more capacity/
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Old 27th Nov 2001, 18:45
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This is a shame - and a surpirse when the last issue of Flight carried a story about the progress of the testing programme. It does look like the RJX will not get built - just those 85/100s already in the pipeline.

There are a lot of older models around and these will fill the niches for sometime, I would expect. Also, there may be an enhancement programme for 146 and older RJs - rather in the style of our Jetstream 32EP project - but I guess that will depend on demand.

I also believe that the Sept 11th stuff is a bit of a smokescreen - the programme was probably stillborn anyway. We only had a handfull of orders.

Commiserations to those losing their jobs - let's hope they can find places in the defence divisions as eurofighter ramps up.
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Old 27th Nov 2001, 22:57
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Wasn't the writing on the wall when the name changed to BAE SYSTEMS to reflect the current focus of business? British Aerospace still had aviation connotations - they just didn't seem to have any interest in building aircraft anymore.

Very sad. Or am I being too cynical?
 
Old 28th Nov 2001, 00:14
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Very very sad.
My Father [now well into retirement] was involved in the design and production of quite a few components on the 146, and although a minor role he was always proud of his involvement - I know it has its detractors but it is/was a unique aircraft, and to my eye, one of the prettiest things in the sky.
During his long career my Dad witnessed at first hand the decline of the UK aerospace industry, with many of his friends emigrating to the US where their skills and talents were eagerly welcomed. He was visibly upset when I told him of BAEs decision to halt production "Oh.. that's it then... the end of airliner production in Britain. Well well well... who would have thought it?"

[ 27 November 2001: Message edited by: Smoketoomuch ]
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Old 28th Nov 2001, 01:54
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Thumbs down

Ok then...from the inside of BAE SYSTEMS..The deal with BE for their RJX's still remains. BAE S is offering to buikd the aircraft and deliver them to BE. but obviously not to the original schedule. BE are unwilling to operate the aircraft in isolation, without other credible operators to push BAE. Who can blame them? Bit from the BAE press releases all seems clear...it's finished and all the Engineers and Support people are being relocated to Prestwick. Not too bad for those at Woodford I guess, but a bummer for those in Toulouse.
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Old 28th Nov 2001, 02:32
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I am so sad, I gave nearly 15 years of my life to BAe and the 146/RJ. I retired a few years ago but always folloed to see how it was going, contrary to some who would say otherwise, it was a great aircraft. I did several demo tours with it as the only engineer on board and it gave me little trouble. I have a lot of experience on several types and it was no more trouble than most. Sad day for British aviation. Commiserations to all the guys at Woodford and all in Customer Support
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Old 28th Nov 2001, 02:52
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I spent some years on the Avro/RJs.

I really appreciated the short-field operations and spectacular steep app. in LCY.

People should consider that every plane has some good and some bad ....

It is a shame to lose this a/c production that marked history.....

My sympathies to all the people building/testing/producing 146/RJs!

Cheers.

Fky safe & enjoy life.
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Old 28th Nov 2001, 15:14
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Well hands up anyone who didn't see this coming. You cant keep flogging a dead horse forever as the British car and motorcycle industry found out. If smaller companies such as Embraer, Fairchild and Dornier can build clean sheet regional jets why not BAE. Either there're more interested in building military aircraft to sell to third world despots to kill there own people or the education system is so poor that we can't train managers, engineers, etc anymore. A sad day indeed, the demise of the last civil jet aircraft to be built in this country.

Good luck to all the boys and girls from Woodford, bad luck to all the idiots in charge.

[ 28 November 2001: Message edited by: snags ]
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Old 28th Nov 2001, 15:26
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Given the demise of RJ production at Wooford - what is left for them to do there ?

Is work still being undertaken on Nimrods and what of the planning permission application for the southside hangars capable of taking 'big' Boeings ?
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Old 28th Nov 2001, 16:35
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Again it is very sad that Bae have pulled out of the RJX program, however I believe this may be a lifesaver for British European. I am sure the company is looking for a replacement, and judging the load factors on the Brussels route I would suggest a Cessna 210 is probably the aircraft for the job!!
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Old 28th Nov 2001, 17:03
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Oh really? I flew to Brussels a few days ago with over 40 pax. Which particular stretch variant of the C210 were you thinking of...???
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