Italian Aircraft Maker To Open Van Nuys Sales Center

Italian aircraft manufacturer Piaggio Aero is opening a sales center at Van Nuys Airport in a bid to capture more business from customers on the West Coast. Aircraft charter and management company Elite Aviation will represent Piaggio by marketing the P180 Avanti II, a $7.1 million, turbo-prop aircraft that the manufacturer puts up against small and mid-size business jets in terms of speed, range and comfort. Elite President and CEO Chris Holifield said she expects the Avanti II will generate excitement with its beauty and appeal to clients in the entertainment and media industries. “This will be something of a new product for them,” she said. The first plane is expected to arrive next month. Elite, founded in 1992, has 13 aircraft under management and has brokered aircraft sales of all types of business jets between individuals. Piaggio is the first manufacturer the firm has represented. Piaggio is one of the world’s oldest aircraft companies with headquarters in Genoa, Italy, and investment stakes by Mubadala Development Co., the investment arm of the government of Abu Dhabi, and Indian conglomerate Tata Group. Piaggio America, the U.S. subsidiary, is based in Florida. Piaggio America President and CEO John Bingham knows first-hand how important Van Nuys Airport is to business aviation. He lived in Agoura Hills and learned to fly at the airport. Bingham said Piaggio considered other aviation companies for its sales center, but selected Elite because of the noticeable passion of its staff for what they do. “That undoubtedly comes from (Holifield),” Bingham said. “She is truly an enthusiastic lady committed to the success of her business.” Holifield said mutual friends introduced her to Piaggio representatives about a year ago. The companies announced the sales partnership in October. Piaggio said it will open five U.S. sales centers in total. Other locations include Colorado, Michigan and Connecticut, and the fifth location is to be determined. The centers will sell the Avanti II, which was certified to fly in the U.S. in 2005. With a range of 1,700 nautical miles and a cruise speed of 745 kilometers per hour, the plane is comparable to small jets and is popular with owners upgrading their aircraft. To date, about 50 percent of Piaggio’s sales are in the U.S., which remains a vital market for the company even with the sluggish economy. During years of weak sales, Piaggio aggressively entered new markets such as Australia, Russia, Brazil and China, Bingham said. The company is also building a new manufacturing facility in northern Italy for its aircraft, he added. “Elite and the other sales centers, and new markets are integral part of the jigsaw to bring more business to Piaggio,” Bingham said. Expected future sales of business aircraft — both jets and turbo-props — will follow growth rates in the economy and in corporate spending, said Raymond Jaworowski, senior aerospace analyst with Forecast International, a market research and analysis firm in Connecticut. Continued uncertainty about the economy and regulatory and tax policies makes companies wary of making capital expenditures, including business aircraft, he said. “A lot of customers are in a wait-and-see pattern before pulling the trigger on a purchase,” Jaworowski said. In the two months since Elite became Piaggio’s representative on the West Coast, Holifield has identified one potential customer to buy an Avanti II. She hopes to see more interest once she has the aircraft in Van Nuys. “I am hoping we will sell at least six or seven planes within the first 18 months,” Holifield said.