AMEDEO CAPORALETTI, PRESIDENT AND CEO OF AGUSTA FINMECCANICA

Agusta-Westland Won't Affect Bell Venture

Negotiations to combine GKN Westland and Agusta into a helicopter company to rival Bell and Eurocopter are well under way and should be completed by the middle of this year, according to Agusta president and CEO Amedeo Caporaletti.

The friendly merger with GKN Westland, and the recently formed Bell Agusta Aerospace Company joint venture (exhibiting for the first time at Heli-Expo '99), are an alternative to a "savage rationalization" of the helicopter industry that would cut jobs, close factories and eliminate some capabilities, Caporaletti told Show News from Varese, Italy.

Both deals help Agusta offer a complete range of products, Caporaletti said. The result will be a helicopter manufacturer that compares in size with Eurocopter and Bell, with about $2 billion in annual sales.

Westland and Agusta have compatible products, he noted. "Westland has great military exposure while Agusta has civil strengths in addition to its presence in the military market," Caporaletti said.

The Westland Lynx is similar in size to Agusta's A129, but has different missions, and the two companies jointly own the EH101. The merged companies will share "programs, production, sites and strategy," Caporaletti added.

The new company will have an unmatched product range to meet almost every application in the military and commercial fields, from the light single-engine A119 Koala to the heavy, three-engine EH101.

Meanwhile, the Bell Agusta Aerospace Company (BAAC) will be unaffected by Agusta's merger with Westland, although it will strengthen the capability of the resulting Anglo-Italian company.

Caporaletti said he is "very confident" about the joint venture with Bell. Europe, he predicted, "will make a significant contribution to the order portfolio for the BA609 tiltrotor, including government entities and private customers." Agusta and Bell have agreed to split their shares in the tiltrotor 25%-75% respectively.

Caporaletti declined to reveal details of the new AB139, a 15-passenger, twin-engine helicopter in which Bell will have a 25% share through BAAC. Marketers are keeping a tight veil around the project until the Paris Air Show in June.

Agusta is showing the A119 Koala helicopter here for the first time, along with its A109 Power twin. Caporaletti said he is "quite happy" with sales of the Power and the A109 K2. Total orders for the Power exceeded 110 by the end of 1998, including emergency medical service versions in France and Spain. The "police" version is due to enter service in the UK this year, he added.

John Morris