BAE Systems Leases Two AVRO RJ100s to Riau Airlines

Released on Thursday, May 01, 2008

Hatfield, Hertfordshire - BAE Systems Regional Aircraft has signed lease agreements with Indonesian carrier P.T. Riau Airlines for two Avro RJ100s.

Due for delivery in August, the two aircraft (msn E3243 and E3265) will be the airline's first jet airliner and will complement an existing fleet of five 50-seat Fokker 50 turboprops.

Riau Airlines has been operating since 2003 and is based at Pekanbaru, capital of the Riau Province in Sumatra. The airline operates a busy scheduled network linking major centres in Sumatra to smaller regional destinations and islands. It also operates a scheduled route into Malaysia, serving Malacca. In addition, it operates a number of Public Service Obligation (PSO) routes and has a thriving charter business servicing the oil and gas sector in the region.

The two Avro RJ100s, with 111 seats in six-abreast layout, will be used to replace the Fokker 50s on some busier routes, but also to open up new international services to Kuala Lumpur and Penang in Malaysia from points in Riau Province. These new services will start as part of the provincial government's vision to establish Riau as a major regional centre for the Malay culture.

The airline is the only carrier in Indonesia to be fully-owned by a regional government. The major shareholder is the Riau provincial government, with neighbouring provinces also holding smaller shareholdings. The aim in setting up the airline was to improve air transport links in Riau province and to accelerate the region's economic growth on the basis of a reliable and professional air transport company.