TROUBLED AUSTRALIAN regional carrier Impulse Airlines has announced that it is returning its fleet of five Jetstream 41s to the British Aerospace subsidiary in a deepening row between the two companies.

Impulse managing director Gerry McGowan has cited "...a changing relationship with the manufacturer due to the restructuring of our commercial-aerospace business", and says that the airline's operations would be carried using Beechcraft 1900Ds and C99s.

The Impulse move follows the appointment in June of an administrator to Pacific Aviation, the company purchased by McGowan to service the J41s. BAe, which had loaned Impulse some A$3.5 million ($2.5 million) to buy the business, and has A$4 million of Pacific's stock, was one of the concerns pressurising the company into administration..

Jetstream sources say: "We are moving to protect our aircraft. A number of financial and legal issues will still need to be resolved, and we are continuing our discussions with Impulse about these matters." Meanwhile, the aircraft are still flying in Impulse colours.

Impulse had agreed to lease ten J41s - five have been delivered, with a further five due in 1996.

Source: Flight International