Julian Moxon/PARIS
FIAT HAS acquired the bulk of Alfa Romeo Avio, in a move, which consolidates virtually all of Italy's aero-engine industry within the giant automotive group.
The move follows a decision by Italian state-owned aerospace group Finmeccanica to sell its 77.5% stake in the Alfa Avio engine business. Alitalia has also sold another 17.5% as part of its programme of asset disposals, although the airline will retain a further 5% (Flight International, 10-17 July). Overall the deal is being valued at around L300 billion ($180 million).
Alfa Avio already has ties with Fiat, joining with the group's Fiat Avio subsidiary in developing a new version of the General Electric CT-7 helicopter engine. Alfa Avio also has a long-standing relationship with GE, which, most recently, covers the manufacture of components for the T700 turboshaft. Fiat is a 21% partner in development of the Eurojet 2000 engine for the Eurofighter EF2000, and is involved in other international military- and civil-engine programmes. It supplies gearboxes and other components for several Pratt & Whitney and GE turbofans, and is a risk-sharing partner in the GE90. It also provides complete transmissions for European helicopters.
The tie-up leaves only the engine activities of ailing Italian-aerospace concern Piaggo outside the new Fiat grouping.
Source: Flight International
