Italian manufacturer Piaggio Aerospace declared insolvency on 22 November, asking for extraordinary administration that would allow them to restructure.
Piaggio manufactures and markets the P-180 Avanti Evo twin turbo-prop, which is aimed at the corporate and business aviation sectors. It is believed they are not selling well.
In December last year, Piaggio released a five-year turn-around plan that included a further investment of $US342 million from parent company Mubadala.
According to a statement from Piaggio, the turn-around plan failed in its key objective.
"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 said.
Under the current market conditions “the company is no longer financially sustainable."
Piaggio was founded in 1884 in Genoa, Italy, as an automotive company. It built its first aeroplane in 1922. The company employs 1200 people, whose futures are now under a cloud.
Going by shipment figures released by the General Aviation Manufacturers Association (GAMA), Piaggio has sold only 13 aircraft since the beginning of 2014.