French aircraft engine producer Snecma is reportedly interested in acquiring the Fiat Italia Group's aircraft engine division, FiatAvio, from the financially troubled Italian company, says Jean-Paul Béchat, president of the 97% state-owned French engine maker, quoted in Italian newspapers. FiatAvio initially investigated acquiring a 30% share in Snecma in 2001, during integration discussions, but the transfer was postponed after the FiatAvio/Snecma negotiations ended. Snecma's estimated sales for 2002 are €6.3 billion ($6.3 billion), which is four times greater than those expected from FiatAvio. Béchat says the situation has now reversed, but any acquisition of stock would need approval from the Italian government, which remains FiatAvio's main customer. Both companies are already working together in the Ariane rocket launcher joint venture Europropulsion and both have a long-standing partnership with General Electric. Snecma is an equal partner in the development and production of the successful CFM56 family of engines, and FiatAvio produces the J79 turbojet and the LM500/2500 marine gas turbines under GE licence.
Source: Flight International
