CO-LOCATION AT REGIONAL AIRCRAFT’S WEYBRIDGE SPARES LOGISTICS CENTRE IS THE FIRST MOVE

Weybridge, Surrey...In a joint announcement today, BAE Systems Regional Aircraft and Ansett Spares & Services, as a first step to developing a long-term relationship, have signed an agreement under which Ansett will relocate its current operations and inventory at Heathrow to Regional Aircraft’s Spares Logistics Centre at Weybridge, Surrey. The inventory includes spares for civil aircraft of all major commercial aircraft manufacturers.

Additionally, Ansett has also purchased a substantial amount of surplus BAe 146/Avro RJ spares stock from Regional Aircraft to add to its existing inventory. This will enhance the company’s ability to support its expanding marketing strategy for growth in Europe, Middle East and Africa. Ansett has comprehensive inventories of spares maintained at its sales and distribution centres in Heathrow, UK, Melbourne, Australia and Los Angeles, USA. Additionally, to efficiently service its customers, the company has an established and growing network of sales/customer service centres which are strategically located in close proximity to important civil aviation markets throughout the world.

Sean McGovern, Operations Director for Regional Aircraft said: “This agreement with Ansett Spares & Services is a major step forward for us and builds upon the restructuring we have undertaken in our own spares operations in the past year. Ansett is the first company to join us at Weybridge and we look forward to ensuring that their tenure at the facility is highly successful.” The executive added, “We are equally excited by the long-term collaboration prospects offered and we look forward to working with Ansett to identify and pursue new opportunities”

Under the agreement Ansett has leased dedicated office and warehouse facilities at BAE Systems Weybridge Spares Logistics Centre and Ansett staff will retain full operational responsibility for the management and shipping of its spares into and out of the facility. Regional Aircraft will provide warehouse space and handling services for Ansett’s heavy, oversized components at its Prestwick Logistics Centre facility in Scotland.

“We are especially pleased with our agreement with BAE Systems, and the purchase of surplus BAe 146/Avro RJ spares inventory as it will greatly enhance our product lines to our customer base for this aircraft series”, said Gregory.R.Quinlan, President and Chief Executive Officer of Ansett. “This agreement with BAE Systems will enhance our global marketing plan for growth in Europe, Middle East and Africa and will provide a broad range of product and superior service to our customers worldwide”, Quinlan concluded.

BAE Systems Regional Aircraft and Ansett have also agreed to form a senior management Steering Board to develop an overall strategy for mutually beneficial co-operation across common business areas of aircraft spares support services. Members of the Board are Sean McGovern and Rob Hearn, of BAE Systems; Gregory R. Quinlan and Michael L. Tenzer, of Ansett.

About BAE SYSTEMS

BAE Systems is the premier global 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 96,000 employees worldwide, BAE Systems' sales exceeded £15 billion (US $27 billion) in 2006*.

*On a pro forma basis, assuming BAE Systems had owned Armor for the whole of 2006.

About Ansett Aircraft Spares and Services

Established in 1958, Ansett Aircraft Spares & Services has supported aviation companies for half a century. It is an authorised distributor and stockist of leading OEMs and carries a wide range of factory new inventory. In addition, it holds a vast quantity of fully traceable expendables and new, overhauled and serviceable rotables, fully certified to FAA/JAA standards. The Ansett inventory conforms to the most discerning traceability and quality assurance requirements of airlines and supports all major commercial aircraft manufacturers, in particular, Airbus, Boeing, BAE Systems, Bombardier, and Fokker.

For further information contact:
David Dorman
BAE Systems
Tel: +44 (0) 1582 488336 
Fax: +44 (0) 1582 488447  
Email: ddaviddorman@aol.com


Gregory Quinlan
Ansett Aircraft Spares & Services, Inc.
Tel: +1 818 362 1100 
Fax: +1 818 362 1100  
Email: gquinlan@ansettspares.com

Issued by:
BAE Systems, Farnborough, Hampshire, GU14 6YU, UK
Tel: +44 (0) 1252 384605      Fax: +44 (0) 1252 383947
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