US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
In 2009, BAE Systems Regional Aircraft placed 44 aircraft and completed 25 other deals – involving engine leases and sales plus lease-end adjustments – from its own portfolio, while closing eight aircraft sales and winning mandates to broker the sale of 42 aircraft as parrt of its Business Development activity.
Steve Doughty, senior vice-president of the company’s Asset Management division, reported that 23 of the aircraft placements had come in passenger markets. “There were also some significant short-term RJ extensions in Europe, emphasising the aircraft’s ability to continue as an interim capacity solution,” he remarked.
Doughty added that Regional Aircraft is currently placing emphasis on the Indonesian, South African and South American markets. “The BAe 146 market is fragmenting, with 13 placements last year with 11 different customers,” he explained.
This year provides Regional Aircraft with the opportunity to take some Avro RJ85s to the market as 13 aircraft are coming out of Lufthansa between now and 2012. Additionally eight former British Airways Avro RJ100s are becoming available as the carrier transitions to an all Embraer E-Jet fleet by June this year.
“One advantage of having these fleets coming to us is that we’ll be able to market full turnkey solutions for operators rather than following a ‘tail-by-tail’ marketing strategy,” Doughty commented. “However, if a customer came with money to buy an aircraft from these fleets, I’d take it. You can’t wait for someone to come along and buy a whole fleet and an actual sale is valuable. And actually, it tends to hurry up those who are debating a number of aircraft acquisitions,” he added.
The company’s freighter market business achieved 11 placements last year, with the ATP idle fleet being reduced to zero. This includes new announcements for the lease of three additional E-Class ATPFs from West Air and the purchase by US carrier Regional One of one ATPF. These four aircraft have already been delivered by BAE Systems.
Meanwhile, no further BAe 146 conversions have been done other than one -200 and one -300 which await buyers. “The market went into freefall just as those conversions were being completed, but we believe they’ll find buyers soon and we won’t be converting any more without orders,” Doughty remarked.
Bernie Baldwin, editor, Low-Fare & Regional Airlines/LARAnews.net
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
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