BAE SYSTEMS REFOCUSSES SUPPORT OFFERING TO MEET NEW MARKET NEEDS

Prestwick, Scotland…..BAE Systems Regional Aircraft is refocusing its customer support operation to meet the needs of a diverse market for its products and also will expand its offering into different aircraft types during 2011.

Announcing this new approach today, Sean McGovern, Business Director-Support for BAE Systems Regional Aircraft, said:

“In addressing our customer needs and the continuing consolidation in the repair and overhaul market, Regional Aircraft has now developed ,and is offering to the market, new Total Support solutions to meet the needs of our large European fleet operators. At the same time we are refocusing our efforts to bring realistic, affordable and convenient support options to customers in new further-afield geographic markets.”

He added: “In addition, we are revamping our well-established JetSpares programme – called Jetspares 2020 – to take it into the next decade. We are also intending to enter the support market for non-OEM products during this year.”

Although the market for the company’s products is gradually moving into new geographical territories, there are a number of major fleet operators in Europe who have committed to Regional Aircraft’s products for many years to come.

Major operators are consolidating their support and maintenance requirements to try and seek as much of a ‘one-stop shop’ as possible. This new market trend, coupled with Regional Aircraft’s wide ranging and well-established support solution has resulted in the development of a Total Support proposition that covers not just the traditional airframe components supported by the company but an extended offering to cover the other major repair and overhaul areas affecting the cost of ownership.

BAE Systems has identified five key elements to the Total Support package, available in a modular format with individual operators taking the elements that return best value to them. These five elements are Airworthiness Support, Spares and Logistics Support, JetSpares 2020, Technical Support and Modifications.

A strategic Total Support solution contract was signed in late 2010 with Ireland’s CityJet, part of the Air France-KLM Group, and covering a five-year renewal of the JetSpares rate per flight hour agreement, together with Continued Airworthiness, and Technical Support Services and the supply of Technical Publications.

BAE Systems is now seeking to build on this contract and has bids in place with other major fleet operators to secure other strategic Total Support contracts.

BAE Systems’ successful JetSpares programme has been running since the early 1990s and now has 115 aircraft enrolled with 18 operators. JetSpares is designed to allow an airline to concentrate on its operations while BAE Systems Regional Aircraft takes care of spares inventory, logistics and repairs. The priority is to keep the airline’s business running smoothly by providing a first-class support service with predictable costs to the operator.

Now JetSpares is being remodelled into a new JetSpares 2020 format that will offer extended coverage and increased flexibility in a package that will take this business forward into the next decade.

This flexible solution is more focussed towards customers needs, taking into account their position in the BAe 146/Avro RJ ownership cycle. In offering a tailor-made solution it is believed that transitions into and also out of the type will be managed in the most efficient and cost-effective manner for the operator.

Regional Aircraft is also expanding its support offering to cater for the different needs of new operators in emerging markets. During 2010 the business held its first support conferences in Indonesia and South Africa. In 2011 it will hold a similar conference in Lima, Peru.

BAE Systems will continue to build on this initiative with plans to regionalise its support offering. Africa has been identified as the most developed of these support strategies with discussions underway with operators and repair stations. The intention is to establish a regional support centre that will provide operators convenient access to the same levels of service as currently enjoyed by European customers.

Sean McGovern added: “BAE Systems’ commitment to its changing customer base has been demonstrated by our challenge to the existing Supply Chain to ensure our service offerings are appropriate to the cost-conscious global marketplace. Perhaps the best example of this is in the major modification we offer to allow our aircraft to operate from remote and semi-prepared airfields. Our efforts, together with our vendors, have resulted in cost reductions for this modification in excess of 25 percent.”

In addition to these initiatives on its own products, BAE Systems sees exciting opportunities to use the JetSpares 2020 development to offer support solutions for systems and rotables on other aircraft types. A number of opportunities have been identified and discussions are underway to bring these to fruition.

For further information contact:

David Dorman
BAE Systems
Tel: +44 (0) 1582 488336 Fax: +44 (0) 1582 488447 Email: david@dorwaypr.co.uk