BAE Systems may be forced to build Avro RJXs for launch customer British European, despite its announcement last week that the programme has been terminated.
The twist comes from a contractual wrangle with the UK regional, which was due to take delivery of its first of 12 firmly ordered RJXs next April. Druk Air of Bhutan holds two RJX orders, while British European also holds eight options.
"We have not cancelled our order," says British European's managing director Jim French. "BAE is contractually obliged to deliver the aircraft, and we are working on the basis the order is going ahead." The Honeywell AS977-powered RJXs were ordered to replace 17 BAe 146s.
Nick Godwin, senior vice president of marketing and communications at BAE's Aircraft Services Group confirms that it is obliged to deliver the firmly ordered aircraft for British European and Druk Air should they wish. "We are talking to them about how we might best meet their and our contractual obligations...we suspect they won't [go ahead with the orders]."
French says the airline is studying the concept of operating what would effectively be an orphaned fleet. The airline is in "no great hurry to make a decision", he says.
If forced to build the aircraft, BAE would want to complete the entire order over the next year or so, but British European's 12 firm orders are due over the next five years and French says the airline is not willing to take accelerated delivery.
The RJX flight-test programme has been underway since April, involving two aircraft, and the first production aircraft for British European is almost complete. Although testing was stopped after the programme termination was announced last week, it is believed to have resumed, pending the outcome of customer discussions.
Godwin says the timing of the decision to end the programme came as result of the terrrorist attacks: "Post 11 September all new aircraft evaluations were delayed by six months. Also the idle fleet began growing," he says. The delay of the British Airways/Qantas competition was significant, with BAE seen as a front-runner for part of the requirement. He adds that there were deals to be done, but "the pricing had gone down and the recourse had gone up".
Honeywell says the shut down process for the AS977 programme "will proceed in an orderly fashion", though it adds "we are obviously very disappointed with the decision". The engine is virtually through certification testing and Honeywell plans to continue work until "we reach the closest milestone and stop that motor there".
Closing RJ/RJX will make 1,000 workers redundant, mainly at its Woodford factory in Cheshire, UK with over 600 job cuts from other plants of BAE as it rationalises its aerostructures and aviation services divisions. Shutting the RJX, along with the other restructuring measures, will cost BAE £400 million ($570 million) - almost all of which will fall in the 2001 financial year.
Source: Flight International
