Fleet News

BA invests £230m in fleet operation

BRITISH Airways is investing £230 million in its fleet over the next decade after signing up to a major fleet management contract. The 10-year contract is to manage British Airways 6,300-strong fleet of vehicles and specialist equipment, including vans, but also covering vehicles such as baggage trailers, crew buses and passenger coaches. Lex Transfleet, a joint venture between RAC and Lombard North Central, has won the deal, which will include parts supply, provided by Lex Transfleet's sister company, Lex Auto Logistics.

Services to British Airways will be provided from seven sites across Heathrow, Gatwick, Manchester and Birmingham airports, using 350 staff. Kevin Stovey, procurement manager, global logistics for British Airways, said: 'This contract is in line with our future size and shape strategy to reduce our cost base and simplify our business. Through a rigorous tender process RAC emerged as the company that could best meet our needs taking into account commercial and operational factors.'

Fleet management is a strong growth area for Lex Transfleet and the latest contract increases the company's fleet under management to more than 40,000 vehicles. The firm has already been boosted by a string of successes, including its part in a series of influential white fleet contracts for the Ministry of Defence.

David Smith, managing director of Lex Transfleet, said: 'Over the past five years, Lex Transfleet has transformed through the growth of its fleet management business.

'Winning the British Airways contract was a strategic goal that will enhance our future in the airside sector and is a launchpad to developing additional business in this specialist market.'

British Airways is the world's biggest international airline, carrying 40 million people last year. The group employs more than 50,000 people in around 100 countries worldwide and operates 343 aircraft.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee