Mexico’s Quest Mexicana has defaulted on a plan to lease four BAe 146s from BAE Systems Regional Aircraft for operation by new airline Ka’an Beel Air. Two of the four 146s had been prepared for delivery at Calgary in late 2007 when the airline suddenly announced that they did not want to go ahead. Flight crew who had been trained in Australia have been laid off, and all mention of Ka’an Beel Air excised from Quest’s website. A statement issued by BAE Systems confirms that it is “taking legal action to recover costs from Quest Mexicana for breach of contract covering its lease contract for four BAe 146-200s and for the costs of preparing the aircraft for delivery. Quest has indicated that it does not wish to proceed to take delivery of the aircraft, without giving any reasonable reason for this action.” The four 146s remain in storage at Calgary, and BAE Systems are now offering them to other potential customers.