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Aviation History
1996
1996 - 1072.PDF
HELICOPTERS Rising fortunes Agusta's resurgence has been confirmed with one order from North America. JULIAN MOXON/MILAN THERE COULD HAVE BEEN no better sign of Agusta's long-awaited revival than the record order from Omniflight Heli copters, which was announced at the Heli copter Association International show in Dallas, Texas, in February. At a stroke, Omniflight's $30 million order for six A109s and six of die new single-engined Koalas confirmed the effectiveness of die strate gy for survival developed since September 1991 by president Amadeo Caporaletti. While the deal clearly reflects the upturn in the civil-heli copter market, it is also the largest single com mitment to Agusta machines by a North American company, demonstrating beyond doubt that the company has beaten off the threat to its future. The news of the order signalled the end of four years of turbulence, following the Draconian measures which Caporaletti had to undertake to ensure Agusta's survival. The new president, a well-known industry troubleshooter, already had significant achievements to his credit, not least his major role in creating the Franco-Italian ATR regional-aircraft consortium. Now he had been appointed by new owner Finmeccanica to reverse Agusta's fortunes, a task which many considered to be virtually impossible. The 1990s began with the manufacturer looking as if it might sink under the combined weight of a virtually stagnant market and poor management by the state-owned Efim group. Debts of Ll,900 billion ($1.2 billion) and sales of only L600 billion were just the outward signs of a malaise which left Agusta struggling to maintain its image. "People didn't think we were seriously in the market any more," says Caporaletti, "so they were buying other heli copters instead." Things moved fast in the four months follow ing Caporaletti's appointment, with agreement reached on a new strategy to reverse Agusta's fortunes and bring it back into profit. "Debts were rising dramatically, although we had some good results owing to recent Government orders and sales abroad," he says. This did not change the fact that Agusta was losing money faster than it was taking it in. The desperate need for efficiency improvements also meant slashing the workforce, a move which Caporaletti knew would be difficult, given the strength of the unions. After six weeks of talks, however, agreement was reached on cutting 3,700 people from the original workforce of 9,200. MAINTAINING REPUTATION Agusta wanted to capitalise on its long-estab lished reputation for civil helicopters which were both sleek-looking and fast, with good performance and luxurious interiors. In the "new" Agusta, the image was to be retained, and the product line extended with the introduction of the Al 09 Power and Al 19 Koala. Caporaletti also wanted to keep the company's long-established roots with the US helicopter industry, giving it access to a strong product base. A manufacturer of fixed-wing aircraft since 1907, Agusta only joined the vertical-flight club in 1952 after signing an deal with Bell to produce helicopters under licence — effectively giving birth to the Italian helicopter industry'. In later years, similar deals were signed with Sikorsky, iMcDonnell Douglas and Boeing, Agusta has introduced the All 9 Koala (left) and the A109 Power, both derivatives of the A109 leaving the company with a culture more US than European and, perhaps, explaining why Agusta has never developed an alliance with the Franco-German Eurocopter consortium. Licence manufacture for the "big four" US helicopter producers continues, Agusta having, for example, manufactured around 200 Boeing CH-47 Chinooks for several countries, includ ing the USA (for the National Guard). The company remains the sole supplier of all-com posite rotor blades for the Chinook. It is carry ing out modernisation of Sikorsky SH-3Hs for the US Navy, and has developed a naval version of the Bell 212, the Skyshark, which it claims is the only lightweight helicopter in the world able to carry out electronic-warfare, anti-submarine and anti-ship missions independently. Caporaletti's stated aim was to "...return to what we do best — designing and building heli copters". This meant developing Agusta's own product line, as well as hiving off unwanted sub sidiaries which had insufficient critical mass to justify major investment. The business was recentred at Cascina Costa, with the other oudying sites being redirected as centres of excellence to produce the components which feed into the final-assembly plant at Vergiate, also near Milan. So, transmissions are now produced at Cascina Costa and Benevento, structures at Brindisi and composites at Anagni. "These are profit centres," says Caporaletti, "which compete on the open market for business based on their particular expertise." The new production system follows a "just- in-time production philosophy" under whiuch each component is manufactured and supplied only as it is required, saving money formerly tied up in stock. Only engines are now pur chased from outside suppliers. "It means you get the leverage in developing a helicopter, because priority is given to reducing flow times. Basically, we have rationalised and sized the company to fit our requirements exactly," says Caporaletti. The result, he says, is that "...we've stopped losing money, and are how aiming for a 15% share of the world market by 2000". This is 32 FLIGHT INTERNATIONAL 1 - 7 May 1996
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