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Aviation History
1978
1978 - 3191.PDF
2106 THE last few years have been tough for Italy's largest aerospace company, but the outlook is now decidedly better. Tornado, G.222, participation in the Boeing 767 and DC 9 Super 80, and sub-contracts on the DC-9, DC-10, 727, 747 and Spacelab are all picking up, and re-equipment of factories and redistribution of work are well under way. The instrumentation sector turned a loss into a profit last year, while space and avionics both improved their earnings. But the two aircraft groups went from small profit to moderate loss. Though the company had its own troubles, external events over which it had no control played a large part in these pianissimo financial results. Technologically, Aeritalia has done its homework and kept itself in the forefront of modern engineering. The company has designed and produced its own aircraft and manufactured US airliner components under licence. It believes that in-house development retains independence and potential exports while the licence work, which has been by no means a plain "bucket shop" operation, has imported the latest US design and production techniques. Aeritalia designed the DC-10 fin as well as making it under licence; designed, made and tested large wing sec tions for the now-defunct Boeing 7X7; and has already manufactured a carbon-fibre aileron for the 767. Equally notable is the design and fabrication of the structure and FLIGHT International, 9 December 1978 as the skill level available there will allow, although Aeritalia is training workers. The division of effort in Aeritalia is now 57 per cent military (down from 70 per cent in 1975), 20 per cent civil and spares, 19 per cent overhaul and four per cent space. Overhaul of F-104s and G.91s, carried out in Turin and Naples respectively, is a major effort. About 50 of the 300 or so F-104s in service with the Italian Air Force are currently in the Caselle factory. The reorganisation of Aeritalia into combat aircraft, transport aircraft and diversified activities groups is now virtually complete. Export orders during 1977 reached L220,000 million (about £135 million), 56 per cent up on 1976. Important factors were the pick-up in Douglas and Boeing airliner sales and the start of production orders for Tornado parts from the two partner countries, though overhauls of previously exported aircraft and price adjust ments account for part of it. The order for the second batch of 110 Tornado wings, received since then, is worth L147,000 million. The order book at the end of 1977 stood at L476.000 million (about £298 million). While various industrial problems caused deliveries to decline from L192,000 million in 1976 to L189,000 million (about £115 million) in 1977, the value added by Aeritalia improved. Aeritalia is keenly aware that better business is to be had from exports, but has learned what it calls a "bitter lesson" from the imposition of US export embargoes on several possible sales of both the F-104S and G.91Y. This explains the present re-engining of the G.222 with Rolls- Royce Tyne 20s. Receipt of a useful order, reported to be for 20 from Libya, has re-established the company's order book and greatly encouraged the marketing teams now working in Africa, South America and India. The fact that the new AM-X will be a national design with a "non-political" engine is also encouraging. Aeritalia is looking at the possibility of helping Algeria to modernise its large aircraft repair facility, inherited from French colonial days. Aeritalia's workforce has been stable at just over 9,300 for two years, but the company now expects to take on Above Gyros and flight instruments are pro duced by Aeritalia's instrumentation division at Nerviano. Right An F-I04S intercepter takes off from Turin Caselle. Below right Italy's two Tornado prototypes are based at Turin: P.OS on the left and P.09 on the right thermal control for Spacelab. Tornado is an expansion of the Italian policy of taking a major share in European military aircraft programmes, which began with the VAK.191B. Aeritalia also shared in Concorde, Mercure, Eldo and the Hawk missile. These programmes have forced Aeritalia to equip itself with large numerically controlled millers, automatic riveting machines, bonding autoclaves, chemical milling facilities, all forms of metal treatment, plus diverse structural and fatigue test rigs, simulators, electronic facilities and clean rooms. Constant government pressure to shift industry towards the work-hungry south has caused more than 60 per cent of the new production in vestment to be made south of Rome. This may be as much up to 700 people in Turin and Naples. Italian labour laws make it virtually impossible to sack workers, but they can be suspended and paid a reduced salary from a fund jointly set up by local authorities and the employers. Aeritalia is proud that, despite fluctuations in Douglas and Boeing orders and other vicissitudes, it has never resorted to this procedure. The company itself suffered some strikes last year, but the worst effect came from the seven-month stoppage, followed by bankruptcy and re structure, of the Saca works at Brindisi, now called Industria Aeronautica Meridionale (IAM). This paralysed part of Aeritalia's production last year. Some 4,500 of Aeritalia's workers are based in the factory in the city of Turin and in the electronics, final
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