Malmo Aviation and BAE Systems Agree on Lease Extension of Nine Avro RJ100s

Released on Tuesday, January 29, 2008

Hatfield, Hertfordshire. BAE Systems Regional Aircraft and Swedish carrier Malm� Aviation have signed long-term lease extensions on the airline's fleet of nine Avro RJ100s. Under this new contract Malm� Aviation will be operating the aircraft well into the second half of the next decade.

Announcing this transaction today, Paul Stirling, Senior Vice President Asset Management said: "We have had a long and excellent business relationship with Malm� Aviation and are delighted to have secured this new long-term lease which further underscores the capability of the aircraft to serve restricted but valuable niche inner city business airports."

Although based at Malm�, the airline has its main hub at Stockholm's downtown Bromma Airport, which is located only eight kilometres from the city centre. There are strict curfews imposed at the airport and only the quietest aircraft are allowed to operate. Despite the extensive curfews, Bromma is Sweden's fourth busiest airport in terms of traffic.

Malm� Aviation is part of Braathens Aviation, the parent company of a group containing six different companies all well positioned within the aviation industry. The new group of companies is based on existing aviation businesses already controlled by Chairman, Mr.Per G. Braathen and has from September 2007 operated as a consolidated group of companies with different brands and business areas.

Per Braathen said today, "Malm� Aviation is an important part of the Braathens Aviation family of companies and this long-term lease extension for the Avro RJ100 fleet allows the airline to retain its dominant position at Bromma. In addition, our Transwede Airways ACMI Company operates RJ70s and RJ85s on behalf of third party airlines, notably into and out of London City Airport. We also offer pilot training, aircraft maintenance, IT solutions and leasing services as part of the Braathens Aviation service portfolio."

Malm� Aviation has an intensive scheduled operation from Bromma linking the capital with the second city Gothenburg 11 times daily; with Malm� twelve times daily and with the northern city of Umea five times daily. A new scheduled service between Bromma and Lulea is being evaluated. These services are very popular with Swedish business travellers because of the convenience of Bromma's city centre location.

In addition, Malm� Aviation works with its partner Brussels Airlines to operate a code share service between Brussels- Bromma, Brussels- Copenhagen and Brussels-Gothenburg. Malm� also operates a large number of charter flights across Europe with some 60 destinations on average visited each year.

Note to editors. The RJ100s in this transaction are msns E3221, E3242, E3244, E3245, E3247, E3248, E3250, E3255 and E3263