Piaggio Aerospace’s engine division has signed a €35 million ($41.86 million), nine-year contract with the Italian Ministry of Defense for maintenance of Rolls-Royce GEM MK1004 engines that power the Leonardo AW129 Mangusta helicopters operated by the Italian Army. The value of the contract includes €3.5 million ($4.18 million) for optional services.
Under the contract, Piaggio will carry out the repair, inspection, and maintenance of the engines. It also will implement technical analysis and investigation on the propulsion system and guarantee relevant logistical support.
“With this new contract, Piaggio Aerospace strengthens the support activity for the engine sector of the armed forces, implementing the project to make the company one of the national centers for the maintenance of institutional fleets’ engines,” said Piaggio Aerospace extraordinary commissioner Vincenzo Nicastro. He added that, with the new contract, the company’s order book becomes even more valuable as it assesses and analyzes non-binding offers from four entities to acquire Piaggio, which declared insolvency and entered into extraordinary administration in November 2018.
Piaggio Aerospace, which also controls U.S. subsidiary Piaggio America, does business in the aviation and engine segments. The former focuses on the design, manufacture, and maintenance of aircraft such as the Avanti Evo, while the latter builds and maintains aero-engines.