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Date: 28 September, 2006

BAE Systems Regional Aircraft announced today at the European Regions Airlines Annual General Assembly in Barcelona that is has signed lease extensions with Lufthansa CityLine covering 13 Avro RJ85s.

This further endorsement by Lufthansa CityLine means that it will continue to operate the aircraft well into the next decade. The cabin flexibility of the quad-jet enables Lufthansa to offer a two-class service to provide seamless compatibility with the larger narrowbodies in the Lufthansa group fleet.

Lufthansa CityLine is part of the Lufthansa Regional grouping that comprises five airlines – Lufthansa CityLine, Eurowings, Augsburg Airways and Contact Air of Germany, together with Air Dolomiti of Italy. Three of these carriers – CityLine, Eurowings and Air Dolomiti - operate a total of 37 Avro RJ/BAe 146s.

SWISS – which is part of the Lufthansa Group - operates a further 25 Avro RJs to bring the total fleet operated by the Lufthansa Group to 62 Avro RJ/BAe 146s – the world’s largest fleet operated by airlines belonging to one of the world’s strongest and most profitable airline groupings.

This further commitment to the Avro RJ85 by Lufthansa CityLine comes only 15 months after significant fleet additions were made by Eurowings and Air Dolomiti for a total of eleven BAe 146-300s, and the largest ever JetSpares support deal was agreed in January this year with the Lufthansa Regional group.

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Note to editors

The aircraft involved in these lease extension transactions are: Lufthansa CityLine Avro RJ865s: E2246, E2251, E2253, E2256, E2256, E2261, E2266, E2268, E2269, E2270, E2285, E2288, E2293

About BAE SYSTEMS Regional Aircraft

BAE Systems Regional Aircraft is responsible for Customer Support, Engineering and Asset Management activities covering a world-wide base of 160 customers operating over 1,100 aircraft in addition to managing a trading and leasing portfolio of some 300 aircraft.

About BAE SYSTEMS

BAE Systems is the premier transatlantic defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With more than 100,000 employees worldwide, BAE Systems’ sales exceeded GB£15.4 billion (US$28 billion) in 2005.



For further information contact:
David Dorman, BAE Systems

Tel: +44 (0)1582 488336  Fax: +44 (0)1582 488447  

ddaviddorman@aol.com
www.regional-services.com


Issued by:
BAE Systems, Farnborough, Hampshire, GU14 6YU, UK
Tel: +44 (1252) 384695 Fax: +44 (0) 1252 383947
www.baesystems.com

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