Julian Moxon/MILAN
THERE COULD HAVE BEEN no better sign of Agusta's long-awaited revival than the record order from Omniflight Helicopters, which was announced at the Helicopter Association International show in Dallas, Texas, in February.
At a stroke, Omniflight's $30 million order for six A109s and six of the new single-engined Koalas confirmed the effectiveness of the strategy for survival developed since September 1991 by president Amadeo Caporaletti. While the deal clearly reflects the upturn in the civil-helicopter market, it is also the largest single commitment to Agusta machines by a North American company, demonstrating beyond doubt that the company has beaten off the threat to its future.
The news of the order signalled the end of four years of turbulence, following the Draconian measures which Caporaletti had to undertake to ensure Agusta's survival. The new president, a well-known industry troubleshooter, already had significant achievements to his credit, not least his major role in creating the Franco-Italian ATR regional-aircraft consortium. Now he had been appointed by new owner Finmeccanica to reverse Agusta's fortunes, a task which many considered to be virtually impossible.
The 1990s began with the manufacturer looking as if it might sink under the combined weight of a virtually stagnant market and poor management by the state-owned Efim group. Debts of L1,900 billion ($1.2 billion) and sales of only L600 billion were just the outward signs of a malaise which left Agusta struggling to maintain its image. "People didn't think we were seriously in the market any more," says Caporaletti, "so they were buying other helicopters instead."
Things moved fast in the four months following Caporaletti's appointment, with agreement reached on a new strategy to reverse Agusta's fortunes and bring it back into profit. "Debts were rising dramatically, although we had some good results owing to recent Government orders and sales abroad," he says. This did not change the fact that Agusta was losing money faster than it was taking it in. The desperate need for efficiency improvements also meant slashing the workforce, a move which Caporaletti knew would be difficult, given the strength of the unions. After six weeks of talks, however, agreement was reached on cutting 3,700 people from the original workforce of 9,200.
MAINTAINING REPUTATION
Agusta wanted to capitalise on its long-established reputation for civil helicopters which were both sleek-looking and fast, with good performance and luxurious interiors. In the "new" Agusta, the image was to be retained, and the product line extended with the introduction of the A109 Power and A119 Koala.
Caporaletti also wanted to keep the company's long-established roots with the US helicopter industry, giving it access to a strong product base. A manufacturer of fixed-wing aircraft since 1907, Agusta only joined the vertical-flight club in 1952 after signing an deal with Bell to produce helicopters under licence - effectively giving birth to the Italian helicopter industry.
In later years, similar deals were signed with Sikorsky, McDonnell Douglas and Boeing, leaving the company with a culture more US than European and, perhaps, explaining why Agusta has never developed an alliance with the Franco-German Eurocopter consortium.
Licence manufacture for the "big four" US helicopter producers continues, Agusta having, for example, manufactured around 200 Boeing CH-47 Chinooks for several countries, including the USA (for the National Guard). The company remains the sole supplier of all-composite rotor blades for the Chinook. It is carrying out modernisation of Sikorsky SH-3Hs for the US Navy, and has developed a naval version of the Bell 212, the Skyshark, which it claims is the only lightweight helicopter in the world able to carry out electronic-warfare, anti-submarine and anti-ship missions independently.
Caporaletti's stated aim was to "...return to what we do best - designing and building helicopters". This meant developing Agusta's own product line, as well as hiving off unwanted subsidiaries which had insufficient critical mass to justify major investment.
The business was recentred at Cascina Costa, with the other outlying sites being redirected as centres of excellence to produce the components which feed into the final-assembly plant at Vergiate, also near Milan. So, transmissions are now produced at Cascina Costa and Benevento, structures at Brindisi and composites at Anagni. "These are profit centres," says Caporaletti, "which compete on the open market for business based on their particular expertise."
The new production system follows a "just-in-time production philosophy" under which each component is manufactured and supplied only as it is required, saving money formerly tied up in stock. Only engines are now purchased from outside suppliers. "It means you get the leverage in developing a helicopter, because priority is given to reducing flow times. Basically, we have rationalised and sized the company to fit our requirements exactly," says Caporaletti.
The result, he says, is that "...we've stopped losing money, and are now aiming for a 15% share of the world market by 2000". This is double today's figure of 7-8%, and reflects the enormous energy being put into the company by Caporaletti and his team. The re-organisation has also allowed Agusta to field two new products - the Power and Koala - in just 18 months, a record for the company.
These two machines now form the basis of Agusta's product line-up, which is supported by the existing A109 range, licence-built Bell 412s, the A129 Mangusta attack helicopter, the EH Industries EH101 under development with Westland, and the NH90 being built with Eurocopter and the Netherlands.
"We now offer a complete range of single, twin, medium and heavy helicopters," says Caporaletti. "We think we can count on the new Power and Koala, and the A129 Mangusta and the EH101 for the main part of our turnover." After 2000, the NH90 will become a major presence in the production scheme. Caporaletti is "...sure it will survive" the budget axe, saying: "It would be very difficult to understand why the four governments would spend so much development money for nothing." He adds that the Italian Government is "...totally committed" to the 726-helicopter programme.
Agusta's 28% share in the NH90 gives it responsibility for developing the helicopter's transmission, and for mission-system integration for the four nations' naval versions (a role it carried out successfully with the EH101). The cockpit and cabin mock-ups will be ready by the end of this year, enabling the mission installation to be optimised for each customer.
Hopes for Mangusta export orders have been boosted by the Italian army's decision to equip its last 15 (of 60) machines with the five-bladed rotor and machine gun of the International version, along with the upgraded transmission developed for use with the LHTEC T800 engine powering the export machine (Italian Mangustas will retain the Rolls-Royce Gem).
MANGUSTA COMPETITIVENESS
The Mangusta has already been used in action in Somalia, and is being offered for export on the basis of what Agusta says is its low procurement cost coupled with "very competitive" life-cycle costs, and a weapons flexibility which includes, for example, the ability to carry either Tow anti-tank missiles or the considerably more expensive Hellfires at the same time.
The arrival of the Koala surprised an industry which had never seen an indigenously designed single-engined helicopter from Agusta. Based on the well-proven A109 airframe, the Koala is designed to be a workhorse for the lower segment of the utility market. "It will cover 80% of the tasks now carried out by the Bell 205, which weighs 4t against the Koala's 2.3t," says senior executive vice-president Enrico Guerra.
Besides the Omniflight order, Agusta says that it has some 20 paid options for the Koala, and is looking at a further ten "soon", which would account for a year's production.
Development costs for the new machine have been minimised by using as many A109 components as possible. The decision to offer the 745kW (1,000shp) Pratt & Whitney Canada PT6D engine instead of the 635kW Turbomeca Arriel meant redesigning the transmission, and has delayed the arrival of the helicopter on the market - the first PT6D-powered machine will not be flown until the end of the year. Guerra says that the new powerplant "...totally changes the helicopter". He argues that, while there are plenty of used Bell 205s on the market, "...why do that when you can buy a new helicopter, with new technology, for $1.5 million?". He admits that this is more than for other machines in the market, "...but the combination of performance, weight and volume makes it worth the money".
The Koala's stablemate, the Power, continues an A109 line which has undergone continuous development over the years, introducing more powerful, digitally controlled, P&W PW206C turboshafts in place of the original Allison 250s, a "glass cockpit", new main rotor head and redesigned landing gear. The new engines increase the A109's range to 930km (500nm), while larger fuel tanks lift endurance to 4.75h. Flight testing of the Power is in progress and certification due in mid-1996.
"Someone said this was an impossible rescue," Caporaletti says, "but I knew I had to do my best to re-establish order. We're very proud of our achievement."
Source: Flight International
