Regionals Update: BAE settles RJX cancellation terms

 - July 11, 2008, 6:34 AM

Under an agreement reached in late January, BAE Systems will not have to build the 12 Avro RJX quad-jets ordered by Exeter, UK-based British European. BAE Systems canceled the ill-fated Avro RJX program on November 27 due to weak market demand and strong pricing pressures. But the company faced the prospect of fulfilling its obligation to build the dozen airplanes over a five-year period if British European insisted. Fortunately for BAE, the airline followed the lead of Bhutan-based Druk Air and canceled its order in return for certain “commercial considerations.” As an alternative to the RJXs, British European has indicated it will replace its 17 aging BAe 146s with more de Havilland Dash 8Q-400s, four of which it has already ordered.