Piaggio Aerospace, the traditional Italian aircraft manufacturer, has filed for insolvency. The company, which was controlled by Abu Dhabi-based investment association Mubadala, declared bankruptcy on 22 November.
In a statement issued on 22 November, the board accepted that the restructuring plan has not worked. It says: "Despite the commitment and hard work of everyone at Piaggio Aerospace, as well as the significant financial contribution made over the years by the shareholder, the key fundamental assumptions of the restructuring plan approved in 2017 have not materialised."
The statement notes that the continued uncertainty and current market conditions mean the company is "no longer financially sustainable". The Piaggio Aerospace board has therefore taken the "difficult decision to submit the application to enter the extraordinary administration proceeding given the company's insolvency status", it says. The main reason for the filing is that Piaggio’s aircraft, including the Avanti Evo and the P.1HH, which were made for business companies, were not selling well. About 1200 people are employed by Piaggio. The future of these positions is unclear.