Company Switching To Mass Production

The Piaggio Company started in 1884 when the Italian company built interiors for passenger ships and trains. In 1915, the company began manufacturing aircraft... and in 1925 started building aircraft engines. The company has a long tradition in both fixed wing and rotary aircraft -- Piaggio's first helicopter flew in 1938.

Piaggio Aero Industries was established in 1998 after the purchase of the assets of Rinaldo Piaggio, one of the oldest existing aircraft manufacturing companies. Jose DiMase is the Chief Executive Officer, and Piero Ferrari is the President of the Board of Directors of Piagio Aero Industries. Tom Appleton is President and CEO of Piaggio America.

Piaggio is one of the last companies to manufacture aircraft one at a time, harkening back to the days of hand craftsmanship... but that's about to come to an end. Piaggio is about to depart from this type of production model and go to a modern manufacturing approach.

At a press conference Monday at NBAA 2006, Piero Ferrari pointed out the company's "glorious past," while also nothing the company experienced difficulties during the 1990s. "The company is still developing," he said.

To that end, Piaggio announced that it has acquired 25 percent of Pratt & Whitney Canada Turbo Engines Corp. "We are proud to have formed an alliance with Pratt & Whitney Canada, one of the world's leading aircraft engine manufacturers," said Ferrari.

Piaggio has invested almost $60 million with the aim to develop both technological and industrial contents. The company expects returns over the next 20 years to exceed $600 million.

Through this investment, Piaggio has entered a risk-sharing partnership with Pratt & Whitney for the PW206/PW207 turbo shaft engine program, which is used in such helicopters as the Eurocopter EC/135, the Bell Helicopter B427, the MD Helicopters MD900 and the Kazan Ansat.

In the fixed wing category, Piaggio signed a letter of intent with Pratt & Whitney to work on the F135 Engine which powers the F-35 Joint Strike Fighter. In December 2005, Pratt & Whitney delivered the first flight test F135 engine to Lockheed Martin in Fort Worth Texas.

The F135 propulsion system team consists of Pratt & Whitney, the prime contractor with the responsibility for the main engine and system integration; Rolls Royce of the United Kingdom, providing lift components for the STOVL F-35B; and Hamilton Sundstrand, provider of the F135's control system, external accessories and gear box.

On the "wow, is that cool side", Piaggio obtained FAA Certification of the Avanti II in May -- and first Avanti II was delivered in the US. The Avanti II has also set some records for its speed; in fact, it recently set another one, this time from Denver to Orlando. The company now holds 17 speed records.

"This is another wonderful moment for Piaggio," said Tom Appleton, Piaggio America President and CEO. "The P180 Avanti II is the fastest business turboprop aircraft in the world and continues to prove its prowess."

It is a pretty slick machine. The Avanti II has a range of over 1,800 miles at a speed of 398kts and a maximum cruising altitude of 41,000 ft.

In a move to regain its stature, Piaggio will be shelving its current manufacturing process and gearing up to mass production of its aircraft.

While it is understandable that the company's stock holders expect a return on their investment... it will be sad to see one of the last of the handcrafted ships to go to mass production.

FMI: www.piaggioaero.com