Aero's dynamics

The firm will start with the construction of a zł.5.4-million, 2,400-sqm assembly and research facility in Mielec. Aero has applied for both EU subsidies and a bank loan, although around zł.1.6 million of the project will be covered by its own funds.

The investment will allow Aero to launch production of light-sport aircraft - an American classification of aircraft with a maximum gross takeoff weight of less than 600 kg. Aero will also increase its total production to around 60 planes in 2008 (as compared to six last year). The products are to target the US (27 planes), EU (30) and domestic markets (two).

"Our project is economically and financially reasonable," says Marcin Łukasiewicz, a vice president at Aero. "The only limitation so far was the lack of sufficient capital," he posits, adding: "We already have 20 preliminary orders from the US." Aero wants to attract buyers to the high quality of the product. "We want to be the Mercedes of the branch," he avers.

"This is a large-scale plan indeed," says Grzegorz Sobczak, editor-in-chief of Skrzydlata Polska (an aviation monthly). "If Aero organizes the appropriate service abroad, they have the potential to succeed," he suggests. He also points out that small Polish planes offer a very attractive quality-to-price ratio. "Aero has a chance to create a good impression of the Polish aviation industry in the US," concludes Sobczak.

Aero hopes to acquire funds for entering foreign markets from its flotation on the Warsaw bourse at the end of this year. However, the company needs to restructure into a joint-stock company first.

 Aero is controlled by Capital Partners, which holds 32.5 percent of the company's shares. Last year it posted zł.2.1 million in revenue.