British Aerospace will continue to squeeze suppliers to its Jetstream business in a bid to cut costs.
Each aeroplane is losing the company £1m and BAe said it will never turn the business into profit.
`We’ve been pressuring our suppliers and will continue to do so,’ said Mike Turner, managing director (commercial aerospace) at the company’s preliminary results last week. `We’re not covering our costs, and we don’t even see the market being at a level where we can cover our costs. It’s just such a competitive market.’
BAe is winding down production of its turboprop aircraft at Prestwick. Last year it made 12 aircraft; this year it expects to produce 10.
Dick Evans, chief executive, said the management would try to put work from Nimrod towards the factory.
The turboprop business has suffered because of subsidised competition from Brazil and India.
The rest of the regional aircraft business, based on jets operating under the banner of Avro, was expected to break even this year. Evans said the long-term future was more assured because of the development of a 100-seat jet, the Asian Express 100, with European and Asian partners.