Newspaper article The Evening Standard (London, England)

BAE Axes RJ-100 after Another Profits Alert

Newspaper article The Evening Standard (London, England)

BAE Axes RJ-100 after Another Profits Alert

Article excerpt

Byline: MALCOLM WITHERS

BAE Systems issued its second profits warning of the year today as it abandoned manufacture of the remaining British-owned and made civil airliner, the RJ-100 (formerly the BAE 146), with the loss of an estimated 1669 jobs.

The setback will lead to a [pound]370-million exceptional charge in the current year, with the civil side of the aircraft business now reduced to a 20% stake in the European Airbus, the manufacture of spares for RJ-100s, freighter conversions and parts for other airliners built by the group in the past.

Most of the job losses will be at the group's Woodford plant near Manchester.

Since 11 September orders have plummeted. Chief executive John Weston said: "Regrettably, it has been concluded that our regional jet business is no longer viable."

Orders for the Airbus have been reduced to 300 from 320 following September's events. Weston said the aircraft is "expected to be profitable at this revised level of output" but warned there could be further job losses and exceptional charges as "operating profit expectationsfor Airbus next year have been reduced significantly". …

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