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St Louis January 25, 2006 - Boeing engineers, working closely with United Space Alliance [USA] and NASA, have found a way to prevent gap fillers, thin spacers between the Space Shuttle's heat resistant tiles, from protruding from the belly of the Orbiter.

On the last Shuttle mission, two gap fillers were protruding about an inch between the tiles and had to be removed during a spacewalk when analysis showed it could cause increased heating on the Thermal Protection System (TPS) during reentry into the Earth's atmosphere.

Determining what caused the gap fillers to come out took a little detective work by an integrated team of Boeing, NASA and USA engineers. "The first thing we looked at was the installation process," said Dan Bell, Boeing TPS subsystem manager. There were multiple possible contributing causes why some of the gap fillers were found with various protrusions after the last flight. The cause was narrowed down to the installation process and a new method was developed.

Work is underway on the vehicles to remove those gap fillers. NASA expects to have them removed and replaced on both Atlantis and Discovery in the priority one region (subjected to higher heating) before the next shuttle flight.

"We ended up saving about 15 percent of those gap fillers that were installed with the old process, while all others in our first priority region were replaced," said Bell. About 3,000 gap fillers will be replaced in the priority one area. Bell says all gap fillers will be eventually checked and replaced if needed.

"These changes have made all the difference. It has been a real success," Bell said

Washington January 25, 2006 - The Air Travel Price Index (ATPI) rose 6.4 percent in the third quarter of 2005 from the same period in 2004 (Table 1), the biggest one-year increase in four years, to reach the highest index level since the second quarter of 2001, the US Department of Transportation’s Bureau of Transportation Statistics (BTS), a part of the Research and Innovative Technology Administration (RITA), reported today.

The ATPI is a quarterly measure of changes in airfares since the first quarter of 1995 for itineraries on US carriers beginning in the United States.

Calgary January 24, 2006 - WestJet today announced the approval of its Board of Directors to lease two Boeing Next-Generation 737-700 aircraft from International Lease Finance Corporation (ILFC). The aircraft are scheduled to be delivered in March and April of 2007, and their lease term is for eight years.

"WestJet is pleased to secure two aircraft from ILFC in order to continue our expansion plans throughout 2007," said Sandy Campbell, WestJet's Executive Vice-President and Chief Financial Officer. "This is the first time we've leased aircraft from ILFC, and this new relationship provides us with another opportunity to continue offering guests the first-rate Boeing Next-Generation aircraft they have come to expect from WestJet."

WestJet will accept delivery of 12 Boeing Next-Generation 737 aircraft in 2006. With the addition of these two leased aircraft, the airline will accept six Next-Generation 737 aircraft deliveries in 2007. As previously announced, WestJet will also accept delivery of three 737-700s in 2008.

Washington January 24, 2006 - The Negotiating Committee for the pilots of World Airways today announced an impasse in their latest meeting with the company under the auspices of the National Mediation Board (NMB).

"We came here to protect the future of our World Airways pilot group by bargaining in good faith," said Captain Luis Carmona, Executive Council Chairman of the World Airways Pilots' union. "But the company once again has chosen to ignore the key issues that provide job security, retirement, insurance benefits and adequate compensation, by coming to the table unwilling and ill prepared to achieve a successful outcome to these negotiations."

On December 28, 2005, the NMB notified the pilot's union they were in a 30-day cooling-off period because in the judgment of the Board "all practical methods" for resolving the dispute between the two parties have been exhausted.

This release from the board states that after 12:01 AM on January 28, 2006, the more than 400 pilots, members of Teamsters Local 986 in El Monte, California, and World Airways, Inc. are free to exercise self-help -- which can include a strike.

"The company has been forcing this train down the track for quite a while," said Captain Brian Robinson, Executive Council Member and Strike Committee Chairman. "Because of their behavior at the table we have been preparing for quite some time for our response after the 28th."

The pilots' concerns seek job protection, adequate medical and life insurance and genuine compensation increases -- not those that are negated by increased benefit costs. The parties have been negotiating a new contract since June 2003, when the pilots' current collective bargaining agreement became amendable.

"We will continue to professionally fly our contractual obligations to the US armed forces in support of them around the globe," said Captain Robinson. "But we can make no promises after January 28th, when it comes to our customers, EVA Airways, Air Canada, Sonair Servicio Aereo and UPS Menlo Worldwide Forwarding."

A subsidiary of World Air Holdings, Inc., World Airways is the largest commercial carrier of US military personnel. The airline also provides cargo services for several international carriers.

The pilots, who became Teamsters in 1967, are among approximately 40,000 members of the Teamsters Airline Division.

Montreal PQ January 25, 2006 - Mechtronix's ATR 42/72 Ascent(R) Full Flight Trainer(TM)(FFT(TM)) has received the dual qualification of FNPT II MCC and FTD Level 2 under JAR-STD 3A and 2A respectively, on December 15, 2005 at the Toulouse based ATR Training Center (ATC). JAR- STD 2A Level 2 is the highest level FTD qualification under JAA and corresponds to FAA Level 6 FTD.

The Ascent(R) FFT(TM) was the first of several Synthetic Training Devices delivered in November 2005 as part of a series of Aerosim-Mechtronix training tools for ATR 42/72 aircraft family. It also represents Mechtronix' first training device sold in France. The Ascent(R) FFT(TM) comprises the 42-300, 42-500, 72-200, and 72-500 configurations. In addition, the deliveries include one Aerosim Virtual Flight Deck(TM) (VFD(TM)), and two Aerosim Virtual Procedure Trainers(TM) (VPT(TM)). The Ascent(R) FFT(TM) is configured with GNSS, Weather Radar, TCAS, EGPWS, and features the CAE Tropos Visual System and a SimAuthor debriefing system.

The devices will support ATR's new training platform called Advanced Aviation Training. The concept is based on an intensive use of non motion training devices and equipment in initial and recurrent training, prior to training in a full motion environment.

Captain Jean-Michel Bigarre, Vice-President Training and Flight Operations at ATR Training Center said: "The Ascent(R) FFT(TM) allows some of the pilot training exercises traditionally performed on a FFS to be executed on a more cost-effective training device. The savings in operations and investment costs allow the development of a worldwide well distributed training network, giving airlines and authorities a very efficient but cost effective tool to increase safety, while simultaneously avoiding wasting money."

"Contributing to the improvement of airlines' training performance and cost savings is a core part of our mission. Mechtronix is proud to partner with ATR for the deployment of their new Advanced Aviation Training platform worldwide." said the President of Mechtronix Systems, Xavier Herve.

Montreal PQ January 25, 2006 - Robert Milton, Chairman, President and CEO of ACE Aviation Holdings Inc. (ACE) today announced the appointment of Chahram Bolouri as President and CEO of Air Canada Technical Services (ACTS).

Mr. Milton said, "I am pleased to welcome Chahram on board as President and CEO of ACTS. His expertise and background will provide ACTS with the strategic direction and leadership required to maximize the value of this important ACE subsidiary by broadening its customer base, while improving profitability."

Reporting directly to the CEO of ACE, Mr. Bolouri will be responsible for developing and executing strategies which support ACE's business objective of growing ACTS as a stand alone company with an emphasis on third party revenues. He was formerly President, Global Operations at Nortel. During his 23 years with Nortel, he held a number of key executive positions, and is credited for building strategies which leveraged service offerings globally,

transforming worldwide business operations and processes to become more responsive and competitive while enhancing profit margins and improving customer satisfaction. He holds a Bachelor in Industrial Engineering from Polytechnique de Montreal. His appointment is effective January 30, 2006 and he will be based in Montreal.

"ACTS is uniquely positioned to capitalize on significant business opportunities in the MRO industry and I look forward to the opportunity of leading a dynamic team with a strong reputation for safety, reliability and quality service," said Mr. Bolouri.

Mr. Bolouri replaces Bill Zoeller who is retiring after 31 years with Air Canada. "Bill played a key role in building ACTS into a world class MRO provider," said Mr. Milton. "Under his leadership, ACTS successfully leveraged its MRO expertise and knowledge of commercial airline operations to grow its third party revenues by securing major agreements with leading airlines, including Delta Air Lines and Jet Blue. I salute and thank him for his strong contribution to Air Canada throughout his career."

Reporting to Mr. Bolouri are: Mark Swearingin, Executive Vice President, Eastern Operations, Basil Papayoti, Vice President & Chief Commercial Officer; Pat Iaconi, Vice President & Chief Financial Officer; John Imber, Vice President, Corporate Resources and Ron Elvidge, Vice President, Western Operations.

Toulouse January 25, 2006 - China Eastern Airlines has taken delivery of its first A330-300 thus becoming the launch operator of the aircraft on the Chinese Mainland. The aircraft is powered by Rolls Royce Trent 700 engines and, will seat 300 passengers in a two-class layout with 38 seats in business class.

"These new A330-300s will be used to replace the A300-600 aircraft in our current fleet," said Luo Chaogeng, President of China Eastern Airlines Company Ltd. "We will put the A330-300 mainly into operation on medium and long range routes, especially on new international routes in Asia." Introduction of the new aircraft will speed up the modernization of our Airbus fleet and help us open new routes on the international market. The A330-300 will offer our passengers a unique and comfortable in-flight experience. We will also benefit from A330's commonality with other members of the Airbus Family by reducing training and maintenance costs."

"The introduction of the first A330-300 into China marks a new achievement in our 20 years of close cooperation with China Eastern Airlines," said Gustav Humbert, Airbus President and Chief Executive Officer. "We are pleased to see that China Eastern Airlines, our largest operator in China and the whole Asia-Pacific, has continued to develop and enlarge its Airbus fleet, which currently comprises the most complete range of Airbus aircraft families in China."

China Eastern Airlines, Airbus' first Chinese customer in China, currently operates an Airbus fleet of over 100 Airbus aircraft, including 75 A320 family aircraft, 18 A300/310 family aircraft and 10 A340 family aircraft. Headquartered in Shanghai, China Eastern Airlines has set up an extensive network connecting Asia, Europe, Australia and America with air links to 450 domestic and international destinations.

The A330-300 entered into service at the end of 1993 and has a range of up to 10,500 km/5,650 NM, giving it excellent flexibility for a wide range of route structures. Benefiting from a very low operating cost per seat, the A330-300 also offers a cabin that optimizes both flexibility and comfort. With generous, truly wide-body fuselages, they are able to accommodate seat and class configurations to suit every operator’s requirements.

The A330 Family is the unquestioned leader in its category with a commanding market share and a continually expanding operator base. The longest-range twin-engine Airbus aircraft in service, A330 airliners have flown over five million operational hours with more than 70 customers and operators, a fact that underlines their strong market endorsement.

By the end of 2005, four Chinese Airlines on the Chinese Mainland, Hong Kong and Macao have operated 43 A330 family aircraft with a further 56 still on order.

Farnborough January 25, 2006 - BAE Systems Regional Aircraft completed a record 38 Jetstream 32 sales in 2005, together with four leases.

Regional Aircraft’s strong Jetstream 32 activity underlines the company’s performance in this sector to offer operators a comprehensive turnkey solution with the aircraft backed by full support packages - an offering that cannot be matched by brokers selling aircraft on behalf of banks.

The 18/19-seat Jetstreams retains its popularity, while continuing to find new markets. There is a strong demand for the aircraft notably in Latin America, while steady placements are also being made elsewhere for the airliner version and also for the aircraft in various executive configurations for corporate charter or shuttle applications.

As a result there is a steady stream of new customers being found for the aircraft as well as repeat business from customers seeking to increase their Jetstream fleets.

Transactions announced today for new customers are:

• Rockhopper of the Channel Islands, UK, has become a new Jetstream 32 customer with the purchase of two aircraft (msn 871 and 873). In fact, last week, the airline signed an agreement for a third aircraft (msn 915). The airline flies seven routes between the Islands, France and England using a fleet of Britten-Norman Islander and Trislander aircraft and has chosen the Jetstream 32 to be its first pressurized equipment.
• Servicios Aereos Professionales based in the Dominican Republic is a new customer for the Jetstream 32 and has leased one aircraft (msn 940). Configured with 19 seats the aircraft will be used on charter operations and contract work in the Caribbean, particularly for aircraft crew positioning.
  

Repeat customer Jetstream 32 business announced today is:

• Air National of New Zealand has continued its association with Regional Aircraft by purchasing one of its aircraft (msn 878) and extending a lease on the second aircraft in its fleet (msn 967). Air National uses its Jetstreams for charter services and to provide additional capacity as required by scheduled service providers.
• Aviation Ventures, Inc. dba Vision Air and located at North Las Vegas Airport, Nevada, purchased two of its Jetstream 32s (msns 876 and 877) in 12-seat executive configuration
• Northwestern Air Lease of Fort Smith, Northwest Territories, Canada has purchased a Jetstream 32 (msn 881) to add to its fleet of Jetstream 31s that it operates with 19 seats on regional operations linking remote communities in Northern Canada.
• Aerolinea de Antioquia of Medellin, Colombia has purchased an additional 19-seat Jetstream 32 (msn 890) to add to its existing fleet of three aircraft that it bought from Regional Aircraft in 2004. The airline uses its Jetstreams to provide regional services to centers such as Bogota, Cali and Rionegroe.
• Corporate Flight Management (CFM) of Smyrna, Tennessee has placed a third repeat order for Jetstream 32s this year with the purchase of an airline--configured aircraft (msn 883). CFM is an on-demand charter company. Currently CFM operates a total of nine Jetstreams, making it the largest Jetstream fleet operator outside the airline environment offering a variety of corporate shuttle services.

New York January 25, 2006 - An Airbus A380 test aircraft, decked in full Singapore Airlines colors, will grace the skies of Singapore, home of A380 launch customer Singapore Airlines, next month.

The aircraft will be participating in Asian Aerospace 2006, the region's premier air show that will take place from 21-26 February.

The A380, the world's largest ever commercial airliner, will be on static display throughout the duration of the air show at the Singapore Changi Exhibition Center. In addition, Singaporeans and visitors to the air show will be able to catch the double-decker in flight as Airbus test pilots conduct daily flying demonstrations.

Meanwhile, work on the Singapore Airlines A380 is well underway at Airbus headquarters in Toulouse, France. Eight Singapore Airlines A380s are in various stages of production, four of which are in the advanced stages.

SIA has 10 A380s on firm order and 15 on option. The order was placed in September 2000 and is worth US$8.6 billion, including the cost of spares and installed engines (but not including the cost of spare engines).

Singapore Airlines will be the first in the world to operate the A380 at the end of 2006. Customers on the Singapore Airlines A380, particularly in the premium classes, will notice a distinctly different cabin product and will be able to enjoy the greater luxury and comfort that the increased space on this aircraft affords. There will be less than 480 seats in a three-class configuration on the Singapore Airlines A380, although the aircraft was designed to accommodate 555 passengers in the same layout.

The aircraft that will be used for this upcoming visit is one of the five A380 development aircraft that Airbus uses for the A380 flight test campaign. The campaign involves over 2,500 hours of flight tests conducted across three continents. This will culminate in certification by the European and American airworthiness authorities, after which the first A380 will be delivered to Singapore Airlines in November this year.

Orlando January 25, 2006 - AirTran Airways, a subsidiary of AirTran Holdings, Inc., today announced that its Board of Directors has elected current Director of Corporate Finance Arne Haak and current Director of Engineering Kirk Thornburg to the positions of vice president of finance and treasurer and vice president of maintenance and engineering, respectively. Collectively, Haak and Thornburg bring 40 years of airline industry experience to the table, and they have both played key roles in AirTran Airways' continued success.

Arne Haak will assume the role of vice president of finance and treasurer, in which he will oversee financial planning, financial analysis, treasury, purchasing and investor relations. His position is based in Orlando. Prior to his career at AirTran Airways, Haak worked for US Airways. Since joining AirTran Airways in 1999, he has worked in a variety of roles from financial planning and analysis to investor relations.

Haak received a Bachelor of Science degree in economics from the Pennsylvania State University, and he also earned a Masters of Business Administration from the University of Maryland. Haak is a member of the Association of Financial Professionals, and he has earned the designation of Certified Treasury Professional. He is a resident of Winter Springs, Fla., where he lives with his wife, Denise, and three children.

"Arne possesses an impressive knowledge of the airline business which has aided in the success of our airline," said Robert L. Fornaro, AirTran Airways' president and chief operating officer. "Arne also has a thorough understanding of revenue and the elements that drive costs, as well as the ability to motivate Crew Members and get people to work together toward a common goal. The culmination of these qualities that Arne possesses has translated into success for AirTran Airways."

Kirk Thornburg has been promoted to the vice president of maintenance and engineering role after joining AirTran Airways in 2004 as the director of engineering and quality assurance. In his new position, based in Atlanta, he is responsible for overseeing line maintenance, heavy maintenance, engineering, quality assurance, quality control, technical publications, maintenance control and maintenance planning. He holds a Bachelor of Aerospace Engineering degree from Georgia Tech.

Thornburg has spent the past 24 years in the aviation industry in various engineering and technical management positions, and has been a most meaningful contributor to the success of the maintenance and engineering organization. Prior to his employment at AirTran Airways, Kirk served both as director of quality assurance and as director of engineering at Northwest Airlines, where he led the establishment of Aging Aircraft Inspection Program for the DC9 fleet.

"Kirk has been very effective at planning and overseeing AirTran Airways' day-to-day maintenance operations," Fornaro said. "What makes him so successful is the fact that he puts safety at the forefront of his daily responsibilities. Safety is the top priority for our airline.

Moreover, Kirk ensures that our maintenance plan exceeds all FAA standards. Because of his hard work and dedication, AirTran Airways possesses an effective and quality maintenance system that we can be proud of."

Throughout the course of his career, Kirk has been the recipient of numerous industry acknowledgements for his work on aging aircraft systems. Kirk has been a member of ATSRAC since 1999, the FAA's oversight committee covering aging wiring issues. He has been invited to lecture on various topics at the joint FAA/JAA conference. He and his wife, Laurie, and their two children reside in Atlanta.

Farnborough January 25, 2006 - BAE Systems Regional Aircraft has leased a further two 29-seat Jetstream 41 turboprop airliners to fast-growing Eastern Airways of the UK. The two aircraft, (msn 41071 and 41074), are due for delivery in April following customization.

This new lease comes only a few months after Eastern Airways contracted with Regional Aircraft for the lease of two other Jetstream 41s (msn 41039 and 41040). The addition of these four aircraft will bring its Jetstream 41 complement to 21 aircraft, making Eastern Airways the world’s largest fleet operator of the type. In addition, the airline operates four 18-seat Jetstream 32s and four 50-seat Saab 2000 turboprops.

An additional development is that Eastern Airways has taken a lease on a Regional Aircraft hangar at Prestwick and this is being used as a refurbishment and customization center for the four newly-leased Jetstream 41s that have been previously operating in the USA. The first two aircraft are in work and will be delivered for line service within several weeks.

An award-winning airline member of the European Regions Airlines Association, Eastern Airways has grown rapidly in recent years on a philosophy of highly entrepreneurial, business-oriented scheduled flights on a network embracing Aberdeen, Birmingham, Bristol, Durham Tees Valley, Edinburgh, Humberside, Inverness, isle of Man, Leeds-Bradford, London Stansted, Manchester, Newcastle, Norwich, Nottingham East Midlands, Southampton, Stornaway and Wick. Services to London City Airport from Newcastle commence in the Spring. Eastern Airways operates some 750 flights each week and will carry approximately 500,000 passengers this year.

To date, Jetstream 41s available for lease have been in very scarce supply. However, with a number of planned returns from airlines in the USA a reasonable supply of these aircraft is becoming available to service the needs of new markets in Europe and further afield.

Farnborough January 25, 2006 - BAE Systems Regional Aircraft has secured another customer for the ATP Freighter with the long-term lease of three aircraft to leading UK freight carrier Atlantic Airlines.

The airline has chosen the Large Freight Door-equipped variant with the BAE Systems E Class interior. The first two aircraft (msn 2015 and 2017) are at Atlantic’s Coventry base where the airline has manufactured and installed the E-Class interior ready for immediate entry into service.

The third aircraft (msn 2024) is at Romaero’s Bucharest facility having the Large Freight Door fitted, with delivery scheduled to Coventry in the first quarter of the year.

The agreement with Atlantic Airlines brings to 20 the number of 8-tonne capacity ATPFs that have been converted and in operation or ordered by freight carriers.

Atlantic Airlines is one of the UK’s top air cargo airlines with a fleet of nine Lockheed Electras (15 tonne payload), two Tuploev Tu-204s (27 tonne payload) and one Antonov 74 (7.5 tonne payload). The airline plans to build up its 7.5 –8 tonne capacity and is doing this with the ATPF with which it can offer either bulk or containerized payloads to the major integrators.

First established as part of the Air Atlantique group of companies in 1994, the airline now runs independently following a Management Buy-Out in 2004. Currently, Atlantic Airlines has contracts with several of the major European integrators and National Post Offices, as well as undertaking ad hoc cargo charters and ACMI substitution operations from its Coventry base.

Farnborough January 25, 2006 - BAE Systems Regional Aircraft has leased a further 94-seat BAe 146-200 regional jet to Ireland’s CityJet, which is a fully-owned subsidiary of Air France. The aircraft, (msn E2136), was delivered in January and brings the CityJet BAe 146 fleet to 19 aircraft.

Based in Dublin, CityJet focuses on high-frequency services for business travelers including vital linkage routes from major hubs to regional centers in Europe. It operates eight franchise routes on behalf of Air France.

Last year CityJet carried 1.24 million passengers and anticipates exceeding the 1.5 million mark this year.

CityJet needed the new aircraft at relatively short notice to help provide extra capacity across the network.

Currently the airline flies an intensive schedule including five return flights a day between Dublin and London City (LCY) and seven services a day between LCY and Paris Orly and Charles de Gaulle airports.

It also flies between Dublin and Paris and from the French capital to Edinburgh, Birmingham, Florence, Gothenburg and Zurich.

Farnborough January 25, 2006 - The unique BAe 146 Atmospheric Research Aircraft (ARA) is set for a busy 2006 with twenty weeks scheduled on overseas detachments during the year, in addition to research campaigns from its home base at Cranfield, UK.

Owned by BAE Systems and converted by Regional Aircraft into probably the foremost atmospheric research aircraft in the world, the BAe 146 ARA is a vital tool in the study of weather patterns, climate change and global warming.

It is operated by the Facility for Airborne Atmospheric Measurements (FAAM) on behalf of the Natural Environment Research Council (NERC) and the UK Met Office.

NERC and the Met Office task the aircraft largely on the basis of bids made by Universities or specialist departments of the Met Office, and arrange the funding. FAAM implements the program, arranging with Regional Aircraft to install new or different equipment as demanded by each mission.

In September/October this year Regional Aircraft will complete the design, approval, and certification for installation of a LIDAR, a vertical laser sensor, on board the aircraft. This will be able to fire upwards or downwards from a minimum height of 16,000ft. It will be used to measure chemical concentrations and the speed of microscopic particles in the atmosphere. This is believed to be only the second LIDAR installation on board an aircraft in Europe and one of only a few in the world.

Currently the aircraft is operating from Niamey, Niger on the DABEX mission (Dust and Biomass Experiment), This is investigating the radiative effects of dust and biomass aerosols emitted from the Saharan region. Later in February it transfers to Dakar, Senegal for the DODO experiment (Dust Outflow and Deposition to Ocean), which is looking at the effects of dust deposits on the North Atlantic Ocean and its effect on sea temperatures in nutrient-rich waters.

Other campaigns scheduled for the aircraft during 2006 are:

• March/April – TREX (Terrain Induced Rotor Experiment). Flying from Fresno, California on a joint US/European project to measure gravity and rotor wave activity in the lee of the Sierra Nevada mountains.
• May/June – CAESAR (Cirrus and Anvils: European Satellite and Airborne Radiation measurement project). Flying from Cranfield to study the radiative properties of Cirrus cloud over a wide range of wavelengths.
• May/June – VISURB UK (Urban Visibility in UK). A study looking at urban aerosols in the UK
• May/June – CAPEX (Clouds and Aerosol Portugal Experiment) – a detachment to Portugal to sturdy aerosols.
• July/Aug – AMMA (African Monsoon Multidisciplinary Analyses) – return to Niamey for a major study on different aspects of air pollution caused by various effects from land
• Nov/Dec – IASI (Infrared Atmospheric Sounding Interferometer). Use of the BAe 146 ARA to help calibrate the instruments on board the Metop satellite due for launch in April 2006. Co-incident flights with US ER-2 or Proteus aircraft and French high altitude balloon.

Farnborough January 25, 2006 - BAE Systems Regional Aircraft reported today that it had secured lease business across all its portfolios and new ‘spares by the hour’ and modifications business worth $320 million during 2005.

Announcing this figure today, Alan Fraser, Managing Director of Regional Aircraft stated: "Despite a difficult and highly competitive regional aircraft marketplace we have done well to bring in new business in these key sectors worth over $320 million. We are continuing to keep our products flying with most of our existing customers, as well as finding new customers for our aircraft.

Equally important is the high level of integrated support packages that we are now bringing to the table and which is helping us to secure new business.

"Of course we have challenges ahead, but we recognize them and are developing plans to manage these. We will continue to invest in the business, to put in a high level of energy and commitment to serve our existing and new customers well, to reduce costs for our operators, as well as to develop new applications for our products and to seek new markets for our capabilities."

During 2005 Regional Aircraft secured lease transactions on its BAe 146/Avro RJ, and ATP portfolios involving 68 aircraft, business worth around $230 million.

In addition, and underscoring the complexities of managing a dynamic lease portfolio, a further 28 aircraft were the subject of other financial transactions.

The Jetstream 32 and 41 portfolios showed 38 Jetstream 32 sales and four leases and four Jetstream 41 leases – business worth around $12 million.

New deals announced today and included in the 68 transactions are long-term leases with First Flight Couriers Limited (FFCL) of India for three ATP Freighters. Two Jetstream 41s were leased to Eastern Airways of the UK and there were new Jetstream 32 sales to customers in Canada, Colombia, Dominican Republic, New Zealand, the UK and USA.

Highlights of the 2005 performance were the long-term commitments secured for the BAe 146/Avro RJ with both the Lufthansa Regional Group and also with SN Brussels. Airlines in the Lufthansa Regional Group leased and took delivery of a further 11 BAe 146-300s during the year (Eurowings and Air Dolomiti) and also signed sales and leaseback transactions covering three Avro RJ85s (Lufthansa Cityline).

Belgian major carrier SN Brussels signed a sale and leaseback deal with Regional Aircraft covering 23 of the airline’s fleet of 26 Avro RJ85/100 jetliners. These aircraft are being acquired and then leased back in stages over the next five years.

In addition, Regional Aircraft was successful in opening up new markets for its regional jet during the year. Further penetration was made into Central/Eastern Europe with the lease of a BAe 146 to Romavia of Romania, building upon previous transactions with Albanian Airlines and Hemus Air of Bulgaria. Asian Spirit of the Philippines also became a new BAe 146 customer during the year.

Commenting on the 2005 performance, Paul Stirling, Senior Vice President Asset Management said: " Last year was exceptionally busy as we secured a high number of transactions across our jet and ATP portfolios and also with good performances recorded on the Jetstream portfolio. In addition, we have started 2006 on a high with newly-signed leases with Atlantic Airlines of the UK for three ATP Freighters and with CityJet of Ireland for another BAe 146-200."

Regional Aircraft’s JetSpares ‘spares by the hour’ support program, enjoyed a good year with 71 BAe 146/Avro RJs added to the program in business worth $73 million. In addition, the modifications business secured a further $11 million of sales with orders received from 25 customers during the year.

A highlight of the JetSpares transactions were the contracts, announced today, with three airlines of the Lufthansa Regional Group for 37 aircraft to be added to the JetSpares program. Lufthansa Cityline (18 Avro RJs), Eurowings (14 BAe 146-200/300s) and Air Dolomiti (five BAe 146-300s) are all now enrolled on to the program.

A significant factor is that 95% of all new portfolio leasing customers for the BAe 146/Avro RJ and ATPs in 2005 have signed up for the JetSpares or MACRO support packages, emphasizing the strength of Regional Aircraft’s Integrated Support Packages and marketing team.

Rob Hearn, Customer Services Director, added: " The market is responding positively to Regional Aircraft’s improved performance and better integrated support offerings and we are delighted to have added 71 aircraft to the JetSpares program in the face of a highly competitive marketplace. Our total focus is on reducing costs and providing better value for our operators and we shall work hard to achieve positive results in these key areas during the coming year."

Farnborough January 25, 2006 - BAE Systems Regional Aircraft has signed long-term leases with First Flight Couriers Private Limited (FFCL) for three ATP Freighters, which will be used by the company to start its own Indian domestic freighter operations.

The three aircraft (msn 2039, 2051 and 2054) will be delivered from the second quarter of 2006 and will be configured as E-Class bulk freighters.

In addition to leasing the aircraft FFCL has signed up for a Material and Component Repair and Overhaul (MACRO) support contract, as well as a full suite of Customer Training packages from Regional Aircraft.

Founded in 1986, First Flight Couriers Private Ltd has developed into India’s largest courier company by volume with 721 offices spanning 1800 destinations in the country and serving 229 countries worldwide. FFCL has over 8,000 employees and handles over 150 million shipments every year.

Currently, shipments within India are carried on belly-hold space on Indian domestic airlines and then transported to their final destinations on a large fleet of trucks, vans and small delivery vehicles. A full range of price and delivery-time differential service modes are offered, such as Express (Document and non-Document), Domestic Cargo (Air or Surface)), International (Express Document or non-Document) and International Cargo.

Mr R.K. Saboo, Deputy Managing Director of FFCL said today: " Our company has grown dramatically in the past 19 years and we are now poised to enter a new phase of growth and development with the creation of our own domestic freight airline. By having our own aircraft, dedicated to carrying our own shipments, we can tailor our products to offer an even better level of service to our customers. We are delighted to have chosen the ATP Freighter, which is the best aircraft in the 8-tonne class, for our requirements, and we are very pleased with the support we have received from BAE Systems."

Commenting on this latest ATP Freighter transaction, Mr. Paul Stirling, Senior Vice President Asset Management of BAE Systems Regional Aircraft, said: " We are delighted to have secured such a prestigious customer as First Flight Couriers Ltd for the ATP Freighter and look forward to hopefully supplying them with additional aircraft over the years as their freight airline operation grows. At a time of sustained economic growth and new prosperity in India First Flight’s timing looks to be perfect as it seeks to provide a new level of customer service to the growing industrial and commercial base in the country."

Washington January 25, 2006 - Hundreds of Air Force men and women who helped rescue thousands of Gulf Coast residents during Hurricane Katrina are "hurricane heroes" according to US Secretary of Transportation Norman Y. Mineta, who met with some of them Wednesday.

Mineta visited Lackland Air Force Base in San Antonio, TX which served as a base of operations for much of the rescue and evacuation work that took place in the hours and days following Hurricane Katrina. The effort marked the largest domestic airlift operation in US history.

"You witnessed first-hand one of the most devastating disasters this country has ever had to endure," Mineta said. "And you rose to the challenge, meeting it with a level of professionalism and compassion that is unmatched."

In the 55 hours after the hurricane hit New Orleans, pilots flew 89 military and civilian aircraft and 9,800 evacuees to Kelly Field located on the base, Mineta said. At the same time, base personnel set up temporary living quarters, assembling thousands of cots and preparing to comfort those who had faced the wrath of the hurricane and survived, he added. Medical teams also received 517 patients, and treated 66 at the base medical center, he said.

"As I stand in this hangar today, I can only imagine how scared they were," Mineta said. "How reassuring it must have been, knowing they were in the hands of our nation’s finest, the men and women of Team Lackland."

"Thousands of lives and hundreds of families were saved because you, our Hurricane Heroes, were ready to help," Mineta said. "No American will ever forget that," he added. He said the entire nation owed the rescuers a "debt of gratitude" and said their response "is the reason each and every American can rest easy knowing you are standing guard."

The Secretary is touring the Gulf Coast region this week to recognize people who responded to the hurricanes. Tomorrow, he will visit employees of the New Orleans Regional Transit Authority who are providing bus service for evacuees from a temporary headquarters facility in Baton Rouge, LA. On Friday, he will travel to Jacksonville, FL to meet with truck drivers who delivered thousands of loads of life-saving supplies to the storm-ravaged region.

NTSB Calls For Stricter Regulation of Air Ambulance Flights

Washington January 25, 2006 - In a special report adopted today, the National Transportation Safety Board called for the Federal Aviation Administration to impose stricter requirements on all emergency medical services flights.

The NTSB undertook the special report after investigating fifty-five EMS accidents in the three-year span between January 2002 and January 2005. "The very essence of the EMS mission is saving lives. Operating an EMS flight in an unsafe environment just makes no sense," commented NTSB Acting Chairman Mark Rosenker.

During the study the Board found that while carrying patients or organs, EMS flights are required to operate in accordance with 14 CFR Part 135 regulations. However, when positioning flights are conducted without patients on board, they are permitted to operate under the much less stringent provisions of 14 CFR Part 91. The Board noted that thirty-five of the fifty-five accidents occurred on positioning flights with medical crewmembers, but no patients, on board.

Part 135 and Part 91 requirements differ significantly regarding weather minimums and crew rest requirements -- two key factors found in the EMS accidents investigated by the Board. The Board concluded that the safety of EMS operations would be improved if the entire EMS flight plan operated under Part 135 regulations and recommended that the FAA require all emergency medical services to comply with Part 135 regulations during the conduct of all flights with medical personnel on board.

The Board's investigation also examined the decision-making process of EMS operators when evaluating the potential risks of a flight. Weather, nighttime flight, spatial disorientation from the lack of visual clues, pilot training and experience, and pressure to take the flight are all risks associated with the EMS mission. Safely operating in this high-risk environment calls for the
systematic evaluation and management of the risks. However the Board found that none of the operators involved in the highlighted accidents had an established aviation risk evaluation program at the time of the accident. Therefore the Board recommended that the FAA require EMS operators to develop and implement flight risk evaluation programs.

In conjunction with the lack of risk evaluation programs, the Board's investigation revealed that many EMS operators lack a consistent, comprehensive flight dispatch procedure to assist pilots in determining the safety of a mission. Currently most EMS operators are notified of an assignment by the local 911-dispatch system or emergency hospital staff. Because most hospital staff and 911 dispatchers do not have aviation expertise, they are not aware of flight requirements, particularly requirements for nighttime flight or adverse conditions. This information is critical and can help avoid accidents. The Board asked the FAA to require EMS operators to use formalized dispatch and flight following procedures that include a dispatcher with aviation experience,
up-to-date weather information, and assistance in flight risk assessment decisions.

Finally the report reviewed several technologies that can assist in flight operations - terrain awareness warning systems (TAWS) and night vision imaging systems (NVIS). Controlled flight into terrain is a common factor in helicopter EMS accidents that could be alleviated by the use of TAWS. The investigations of seventeen of the fifty-five accidents determined that TAWS might have helped pilots avoid terrain. The Board recommended that the FAA require the installation of terrain warning systems on all EMS aircraft.

In addition to TAWS, the Safety Board found that some EMS operators were using NVIS to enhance a pilot's ability to avoid terrain. The Board determined that if used properly, NVIS could help EMS pilots identify and avoid hazards during nighttime operations. However, because NVIS are not feasible in some situations such as populated areas with ambient light or numerous streetlights, the Board did not make a recommendation on this subject.

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