AgustaWestland’s new CEO, Daniele Romiti, met the press here at Heli-Expo Monday night just days after his appointment by parent company Finmeccanica.
AgustaWestland has said it expects to be cleared of bribery allegations relating to an Indian government order for 12 AW101 VIP helicopters. At press time, the Italian-UK joint venture was responding to questions from the Indian defense ministry in relation to a “show cause notice” that could result in the cancellation of the $750 million contract. It had until February 22 to answer these questions.
On Thursday, Finmeccanica’s board nominated Daniele Romiti as the new CEO of subsidiary AgustaWestland, replacing Bruno Spagnolini. Romiti, who was promoted from COO, has since been endorsed for the position by AgustaWestland’s own board. Spagnolini and Giuseppe Orsi, CEO of AW parent Finmeccanica, were arrested February 12 as part of an ongoing bribery investigation involving the sale of 12 AW101 VIP helicopters to the government of India.
The Indian government has begun the process to cancel its contract with AgustaWestland (AW) for 12 AW101 VIP transport helicopters.
Italian police arrested the current and former CEOs of AgustaWestland on bribery charges this morning and raided the company’s Milan headquarters. Giuseppe Orsi, who served as the helicopter manufacturer’s CEO until December 2011 and is currently head of its parent company, Finmeccanica, was taken into custody, while current AgustaWestland CEO Bruno Spagnolini was placed under house arrest.
AgustaWestland is making a new push into South America. The Italian helicopter maker, part of the defense and industrial conglomerate Finmeccanica, signed a memorandum of understanding on January 21 to establish a joint venture with Brazilian aircraft manufacturer Embraer to build AgustaWestland helicopters in Brazil for both the domestic and regional military and civilian markets.
Managers and R&D specialists from the aerospace, defense and security (ADS) sector met in London last week to explore emerging adjacent markets, such as energy, environment and climate; food and water security; and natural disaster protection and response. Sponsored by EADS, Finmeccanica, Lockheed Martin, Northrop Grumman, Raytheon and Saab, the event was the third in a series organized by British consultantcy Dynamixx, in association with IHS.
At first glance, the proposed merger between EADS and BAE should not pose problems for competition regulators on either side of the Atlantic, from a defense perspective. There is very little overlap between the businesses. “It’s a great strategic fit,” one EADS official told AIN. However, that may not stop companies such as Finmeccanica or Thales from raising questions about the consolidation of first-tier defense contractors in Europe.
Three Finmeccanica companies have signed agreements with the Russian defense export agency Rosoboronexport to offer maritime patrol aircraft (MPA) versions of Russian types. Selex Galileo would provide its ATOS mission management system, while radio specialist Selex Elsag would provide advanced CNI (communications, navigation, identification) equipment.
The only way is up for Italian aerospace group Finmeccanica after it announced record losses of €2.3 billion ($3 billion) on March 27. Massive “exceptional events” and “non-recurring” charges totaling almost €3.2 billion ($4.3 billion) accounted for most of the financial hit.