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.
BAE Systems may have to build another 14 of its Avro RJX regional jets, despite announcing its intention to scrap the program in late November. The UK manufacturer is now seeking to renegotiate contracts with launch customers British European Airways (BEA) and Druk Air of Bhutan. The British operator placed an order for 12 RJXs and options for another eight, and Druk Air holds a firm order for two.