Piaggio of Italy is mounting a last-ditch attempt to revive its fortunes by cutting the price of its P180 Avanti. At the same time, the troubled company is undertaking a significant upgrade of the 30 or so P166s owned by Italian Government agencies.
The price cut (from $5 million to $4.4 million comes mainly from replacing US-built composite structures with locally produced metal items. Flutter and vibration tests are due to start on the first of the "new-standard" Avantis by the end of September. With a new marketing campaign set to get under way, Piaggio is hoping to be able to start production of the revised aircraft in 1998. Meanwhile, the firm is to deliver one aircraft to the Italian army in June, followed by another two to the civil-protection department.
Work for the Italian Government is effectively keeping the company afloat as it pursues its seemingly endless quest for a buyer to rescue it from the brink of bankruptcy. The most important part of the P166 utility-aircraft upgrade for the Government is the replacing of the Lycoming LTP101-700 engines with Pratt & Whitney Canada PT6A-121s. Avionics and systems upgrades will also be undertaken at the same time.
Piaggio, which also has an aero-engine-overhaul and assembly business, has been unsuccessfully seeking a buyer for around three years. With over 1,000 jobs at stake in an area of high unemployment, the Government is reluctant to see Piaggio go under, and continues to prop it up with contracts.
Source: Flight International