B/CA Show News - NBAA 2007 Day 2 - (Page 58)

N BA A 2007 Piaggio: Faster Production, Greener Credentials Piaggio is very happy with its order backlog, but when its customers have to wait two years for their $6.5 airplane, they can get a bit restless. Piaggio America is responsible for around two-thirds of all Avanti orders, so Show News asked newly appointed Eric Hinson, Piaggio America Inc. president and CEO, about the remedies. “We’re currently sitting on a worldwide backlog of around 100 Avanti II orders,” he told me. “The Italian factory is currently producing 2.5 aircraft per month, and we’re geared up and ready to go to three per month by the end of this year, which should be easily sustainable.” A couple of supply chain issues have to be solved rapidly, but he wouldn’t be drawn further. “The factory is running at two shifts per day, five days a week, and occasionally, because of supply chain problems, we have to do things out of sequence, which means weekend work to catch up,” Hinson said. “We believe that we have a strong market, especially from other parts of the world, and we can sustain sales of up to 35 to 45 aircraft per year. Piaggio plans to produce 33 to 35 aircraft in 2008 and stabilize at 40 aircraft per year from 2009.” Avanti IIs, which were ordered at One of the biggest chalthe Paris Air Show by Jordan-based lenges is getting the airSaraya Private Aviation, are the first for craft to the customer inside that region. They are relatively straighta year or quicker, he exforward to support, as Amman is only plained. “But as we ramp about three hours flight time from up production, hopefully Piaggio’s Genoa factory. “We have sold we’ll drive down the backthese airplanes with a large spare parts log, and therefore the waitholding and right now are looking for ing time. an outright service center in the Middle “We’re spending a lot of East,” Hinson said. time with our shareholdThe Avanti has been presented as an ers, including Mubadala Eric Hinson of Piaggio America. economical twin turboprop with jet Development [the Abu Dhabi-based company that bought a 35% share- speeds for years. Hinson explained that another holding in Piaggio Aero in 2006], whom I see on major selling point now is its green credentials, a fairly regular basis. It is very active and contin- which are being exploited by Avantair, Piaggio’s ues to grow its own aerospace presence while look- largest Avanti fleet operator, with 34 aircraft. ing at possible synergies within its various holdings. Avantair’s all-green advertisement, “Our CompeIt is very committed to aerospace strategy and tition Is Green with Envy,” first appeared in the Wall Street Journal and compares the Avanti with Piaggio,” Hinson said. A number of U.S. deliveries are ongoing, with nine bizjets. Five of these compete with the Avanti. four aircraft under completion right now. All air- The Avanti wins hands down with 2,110 lb of craft completions take place at Jet Works Aviation CO2 per hour, up to the Hawker 800XP, which Inc., in Denton, T exas, where Piaggio has a small produces 5,927 lb of CO2 per hour. Hinson says that Piaggio is about to run simicontingent that includes Piaglar ads with the message: “Avanti not only saves gio’s head of completions, a maintenance team and a couple money but is good for the planet.” —Mike Vines of pilots. Completions take from 8-12 weeks, depending on complexity. “Piaggio’s core business is the U.S. and Europe, and it is a relatively small company compared to the likes of Cessna,” explained Hinson. “So when we get requests from much farther afield, we have to have a very measured approach to supporting those aircraft to the standards our customers expect.” The six The all-glass cockpit of the new Piaggio Avanti II. Co-branding with Ferrari remains part of the market strategy. Another Piaggio in the Wings? News on Piaggio Aero’s secret business jet project is sparse; it could even have been put on the back burner. Eric Hinson, president and CEO of Piaggio America, told Show News, “We are continuing our studies and exploring a variety of different opportunities, but I can’t say anything beyond that.” He did say, however, that the number of new business jet models emerging from the well-known OEMs and newer smaller niche players is continually changing the scene and further muddying the water. “The tricky part is building another unique product like the Avanti,” Hinson said. —MV 58 September 26, 2008 www.aviationweek.com/shownews http://www.aviationweek.com/shownews

Table of Contents Feed for the Digital Edition of B/CA Show News - NBAA 2007 Day 2

Contents Spectrum Stresses Freedom Adam Shows A700 Cabin User Fee War of Words Execujet Boosts Services Saab's Got Your Back CAE Covers the Field London Airports Roundup Pratt & Whitney Canada Another Show! A More Digital Jeppesen CMC Rides Bizjet Wave Thales Weighs In We Fly the Eclipse 500

B/CA Show News - NBAA 2007 Day 2

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