EBACE Show News - May 21, 2008 - (Page 52)

EBACE 2008 ON THE RECORD— Josè Di Mase, CEO, Piaggio Aero Piaggio Sees Silver Lining in Costly Oil As with the rest of the aviation industry, the surg- craft by the end of 2008. “We haven’t decided ing price of oil is uppermost in Piaggio Aero’s what our final stable production figure will be mind, but the effect is not all bad according to yet but I would expect it to be 40 or 45 aircraft, a year, depending on the market, by 2011.” CEO Josè Di Mase. A new factory is at the core of Piaggio’s strate“We are heading for, who knows, maybe $200 a barrel, so when our aircraft delivers a gic modernization plan, but that plan is running 30% cost saving over a typical mission then that’s slightly behind schedule as the company grapimportant. I can almost say that rising oil prices ples with planning laws and local bureaucracy. “Europe is not the easiest place to build new are pushing Avanti sales. It has always been seen as an ‘eco-friendly’ aircraft and its lower fuel factories on greenfield sites,” says Di Mase. “This consumption has been a specific factor in at least has been a difficult handicap for us, but we still plan to have production underway two recent sales. We are proby the end of 2009, with full promoting the Avanti as a green duction in 2010.” aircraft—it’s a new ‘mentality’ The new factory site is at for us,” says Di Mase. Piaggio Aero is equally conVillanova d’Albenga, about 70 kilocerned by the continuing fall meters west of Genoa where the in the value of the dollar. From final assembly facility is currently located. In fact, Piaggio is still waitthe current Avanti II order book ing for approval to start serious of 111 aircraft, 79 are for North construction there, but it hopes this American customers. “The will be agreed this month allowing weak dollar is certainly a probthe remaining work to get underlem,” admits Di Mase, “but we way in June. have hedged our exchange rates While Piaggio Aero remains and we are pretty well covered committed to staying in Italy, “we for the rest of this year. There’s are always looking for lower-cost no question that it’s an advanJosè Di Mase of Piaggio. work potential” says Di Mase. tage for U.S. manufacturers, but it hasn’t affected our U.S. sales so far. In fact, “Wherever we can we will be sourcing outside we have found that people are still willing to pay the Eurozone, while keeping Italy as our proa premium to have an Avanti. We have increased duction and manufacturing center, and our prices in the U.S. and that has not proved maintaining our 1,400 labor force. But Eastern Europe is close and cheaper. We are already to be an issue.” Piaggio has made steady progress in building building parts in Romania and we are looking up both its sales and deliveries. In 2007 the com- at additional work in the Czech Republic.” The Mubadala Development Company—an pany delivered 27 Avantis. In 2006 Piaggio delivered only 17 aircraft, so the figures for last investment arm of the Abu Dhabi government— year represent a growth of very nearly 60%. owns 35% of Piaggio Aero. Mubadala’s influence Di Mase expects deliveries to reach 32 or 34 air- within Piaggio has been significant, but not as Piaggio Aero’s Avanti II is a fuel miser. radical as some had anticipated. “They are our investors, they are very supportive. They work with us at a Board and Executive Committee level and have helped us build our market,” notes Di Mase. “Piaggio is a strategic investment for them but we have had no discussions about moving Avanti production to Abu Dhabi. Mubadala’s aerospace strategy is much bigger than the P.180. They are more interested in developing their own infrastructure, to become a source of major manufacturing and to work with the big airlines. “Mubadala has brought the Middle East market to us. Because of its credibility and its government backing Mubadala has a lot of influence, not just in its own region but in places like Singapore too.” —Robert Hewson Old Beech, New Beech, EBACE 2008 Old meets new. Mirror-bright veteran Beech Model 18— the Wichita company’s firstever twin-engined airplane and one of the first dedicated business twins—faces its latterday equivalent, the Beechcraft King Air 350 turboprop, across the EBACE display ramp. Grob to Float Scheme for SPn Jet Support Grob Aerospce will launch a maintenance cost assurance plan for its SPn business jet, here at EBACE by Grob Aerospace. Designed to hedge the aircraft maintenance cost, the plan will cover spare parts, scheduled and unscheduled maintenance and technical publications, guaranteeing customers complete control over direct maintenance costs. A choice of three levels—Basic, Advanced and Premium—will give customers a service to meet their specific needs, with costs based on fixed rates per flight hour.—Mike Vines 52 May 21, 2008 www.aviationweek.com/shownews http://www.aviationweek.com/shownews

Table of Contents Feed for the Digital Edition of EBACE Show News - May 21, 2008

A318 Elite is on a Roll A Circle Around London P&WC Deliveries Triple Avanti Sees Sales Shift RUAG Eyes Needy Cabins Global Gets Even NICEr Embraer Beefs Up Support Honeywell ‘Virtual VFR’ Signature Europe Grows Gestair Seeks to Double Aero-Dienst Turns 50 Gama Doubles in Size All is Not Woe with Oil Ocean Sky is Aggressive

EBACE Show News - May 21, 2008

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