TATA BUYS INTO PIAGGIO AERO
Tata, a UK subsidiary of India's Tata industrial group, is to acquire a roughly one-third share in Piaggio Aero, to become one of three primary shareholders alongside the Ferrari and Di Mase families and the Abu Dhabi government investment company, Mubadala Development. Tata's proposed investment consists of limited purchase of shares and an injection of new share capital, believed to amount to €100 million ($138 million), to enable Piaggio to expand production and offer its Pratt & Whitney Canada PT6-66B-powered P180 Avanti II to new markets, including India. Piaggio chief executive Josè Di Mase describes Tata as "a highly ethical and selective investor", whose industrial expertise will benefit the aircraft and engine maker. The deal is subject to regulatory approval.
ROMANIA BACK TO START WITH AVIOANE CRAIOVA
Romanian manufacturer Avioane Craiova's privatisation has returned to square one, disappointing Czech firm Aero Vodochody, which was the sole remaining bidder. Aero Vodochody was planning to restructure Avioane Craiova, which dates to 1972 and is active in civil and military aerospace manufacturing and maintenance, and use the acquisition to strengthen its aerostructures business. Romania privatisation agency AVAS says it has abandoned its attempt to sell an 81% stake in the manufacturer after the two sides failed to agree contractual terms within the allotted timeframe. The Czech firm still plans to participate in the tender for Romanian aerospace firm IAR Ghimbav. AVAS says a fresh Avioane Craiova privatisation attempt, again covering 81% of the company, will be launched as a matter of priority.
MTU PLANS €50M COST-SAVING DRIVE
German powerplant specialist MTU Aero Engines is embarking on a cost-reduction initiative across its entire production chain, to save €50 million ($70 million) a year from 2011. The "Challenge 2010" scheme will initially generate €25-30 million to 2010, with this figure increasing from the following year. Chief executive Egon Behle says that, while MTU's financial forecast is still on track, the scheme will "enduringly secure" the company's competitiveness and "cushion the impact of a slump, if it comes". He adds that the programme will also help offset costs from research and development and new projects.
CAPITAL START FOR NEW LESSOR
Start-up lessor Capital Lease Aviation made a £1.11 million ($1.97 million) pre-tax profit on aircraft rental revenues of £1.75 million in its first year of operation, to 30 June. Since September 2007 the company has acquired six aircraft - three Fokker 100s, one Airbus A320 and two Airbus A321-200s, valued at £55.9 million. Chairman Jeff Chatfield says: "Profit levels are as expected given our limited history."
AIRBUS CLOSES LAUPHEIM SALE
The sale of the Airbus aircraft interiors production site in Laupheim, Germany to Diehl/Thales closed on 1 October. The sale is part of the airframer's Power8 restructuring programme.
DMA AND SBAC IN MERGER TALKS
Two leading UK aerospace trade associations, the Defence Manufacturers Association and the Society of British Aerospace Companies, are in co-operation discussions that could lead to a merger, the groups announced last week.
Source: Flight International
