Despite the Dowry, Engaged Couple Not at Altar Yet

Agusta approaches the planned but still putative merger with GKN-Westland with its confidence buoyed by recent orders for both its "own label" designs and those developed in partnership with Bell, company chairman and CEO Amedeo Caporaletti told Show News in an eve-of-show interview.
But he was coy on the subject of the long-awaited consummation of the Agusta-Westland marriage, predicted 16 months ago by the respective parents, Finmeccanica and GKN.
"Soon you will receive news," Caporaletti said, with both parents wishing to see the joint company up and running as soon as possible. He blamed the very lengthy due diligence process for making the timing of the merger difficult to predict.

Both partners intended the joint venture "to become an efficient single enterprise under a coordinated management committed to becoming a global leader in providing all vertical lift aircraft solutions," he said. They presently shared a backlog of orders worth some $7.4 billion-about four times their combined revenue in l999, he added.
Caporaletti said more than 150 orders have now been placed for the Agusta A109E Power helicopter, and that more than a year's planned production of the A119 Koala has now been sold. The A109 was the best-selling light twin last year and was recently chosen by the U.S. Coast Guard for interdiction of high-speed marine smuggling operations.
"Remember, too, that our order book contains our participation in the EH101 Merlin and NH90 programs, which account for almost 100 and 298 helicopters respectively," Caporaletti said.

Turning to partnership projects with Bell, the Agusta chief said both the BA609 tiltrotor and AB139 were now well into the manufacturing and final assemblies phases after completing critical design reviews. The AB139's maiden flight is scheduled for the beginning of next year and certification by the end of 2002.
Orders have recently been placed by Bristow in the UK, Helitech in Australia and latterly the Italian company Elilario. A mockup of the military version is on display here.
The BA609 tiltrotor is expected to make its maiden flight next summer, with FAA certification targeted in 2003. Eighty orders have now been placed by more than 40 customers in 22 countries.

But reverting to the intended merger with Westland, Caporaletti was asked whether he thought Bell, and the Bell-Agusta joint subsidiary, would eventually join in. Consolidation in aerospace and defense industries is an irreversible global trend, he said. The Agusta-Westland venture would have the strength and capabilities to compete on a global basis.
"But if further consolidation allows is to build a strong, more competitive business which adds value for shareholders, then we would continue to be active participants in that process," he said

By Bob Rodwell