Italian Government commits €700 million in Piaggio contracts

posted on 25th June 2019 by William Hayes
Italian Government commits €700 million in Piaggio contracts

Financially troubled aircraft manufacturer Piaggio Aerospace has received a boost from the Italian Defense Ministry, which announced commitments totalling €700 million (£624 million).

The commitment includes the purchase of nine new Avanti Evo executive aircraft, the upgrade of 19 current Avantis, engine maintenance, and logistics support.

“The definition of the operational needs of the Italian armed forces and the availability of the relevant budgets, communicated yesterday by the Italian government in Rome, allows the company to restart,” said Vincenzo Nicastro, extraordinary receiver of Piaggio Aerospace.

“The timetable announced, which foresees the signing of the first new contracts as early as the end of this month, will support the company’s commitment to regaining market share in all the sectors in which it operates.”

The government’s confirmation follows an agreement it made in April which set out the basic structure of the contracts, enabling the company to restart production.

Since April, Piaggio has attempted to find a buyer for the company, with more than three dozen expressions of interest given so far – although the company now wants more detailed bids.

“I believe that—just six months after the start of the extraordinary receivership—we are moving in the right direction,” said Nicastro.

“Our goal is to be in a good position after the summer, when the official tender for the sale of Piaggio Aerospace will hopefully start.”