Piaggio Pads Mx Business with $14 Million Deal

 - August 27, 2019, 1:59 PM
The contract with Italian air navigation services provider ENAV for Avanti II support is another important step for Piaggio, which seeks to get on stronger footing as it searches for a buyer. (Photo: Piaggio Aerospace)

Piaggio Aerospace is continuing to build up its maintenance business with a recent contract valued at €12.6 million ($14 million) from Italian air navigation service provider ENAV to maintain four P.180 Avanti IIs used for flight inspection activities at national airports. Spanning seven years, the contract will provide integrated support for the Avantis, which rack up about 1,800 hours a year and are equipped to measure and calibrate airport navaids.

Importantly to Piaggio, the contract helps reinforce the company’s maintenance business as it strives to get on a stronger footing and searches for a buyer. "The agreement signed represents a further step forward in the turn-around process of Piaggio Aerospace,” said Vincenzo Nicastro, extraordinary commissioner of Piaggio Aerospace. "While strengthening the backlog of the Genoa factory-owned service center, it also confirms the unique expertise of the company in the airframe MRO domain, consolidated throughout decades of activities.”

The company entered extraordinary receivership late last year and this past spring announced it was accepting bids for a buyer. The Italian government gave important backing to the company this summer when it confirmed commitments for various contracts for €700 million ($798 million). That confirmation came with immediate contracts from the Italian Air Force totaling €167 million ($185 million) for engine maintenance and spares.