Investors sought to fund prototype plane

Investors sought to fund prototype plane

BANDUNG (JP): Financially strapped PT Industri Pesawat Terbang
Nusantara (IPTN), the state aircraft manufacturer, is currently
seeking new investors to help finance the certification of its
prototype N-250 turboprop airplane.

The company's technology director, Agung Nugroho, said here on
Thursday that IPTN was actively seeking foreign investors to help
it finance the certification process, which is estimated to cost
up to US$100 million.

"The response so far is quite good. Several foreign investors
are very keen to become new investors. But I cannot give the
details now as their offers are still being studied," he said.

Agung said the N-250 prototype, the first plane wholly
designed by Indonesians, is currently undergoing certification
from the Indonesian Certification and Airworthiness Office, the
Joint Airworthiness Authority in Europe and the United States'
Federal Aviation Authority.

The prototype has completed 800 flight hours of the targeted
2,000 flight hours in tests for its certification, he said.

"Usually it takes one year to complete 1,000 flight hours," he
added.

Agung said the N-250 aircraft could enter the commercial
market once its certification process is completed successfully.

"The flight testing needs huge funds because we need to buy
fuel, spare parts and other things. As part of the process, the
aircraft's spare parts have to be reserved from special vendors,"
he said.

IPTN, the brainchild of President B.J Habibie, who served as
corporation president until March last year, has been deprived of
further government financial support since last year at the
behest of the International Monetary Fund (IMF).

Agung admitted that the company was facing financing
difficulties in implementing several of its projects following
the cut in government funding.

"We have to refocus our mission, for example, by emphasizing
the marketing of the CN-235 aircraft, especially its military
version, which has been considered quite sophisticated in its
class."

IPTN has also diversified its business by producing high-tech
equipment other than aircraft and manufacturing defense devices
for the government, he said.

The company is also "leasing" its expert staff to other
aircraft makers, Agung added.

"At present there are around 20 of IPTN's aircraft specialists
working with Canadian aircraft maker Downier for its Downier 728
aircraft development project. Several others were hired by the
U.S Boeing for its model-structure test project," he said.

IPTN's technology division, which is chaired by Agung, is
currently developing the telemetri tracking system, usually used
in flight tests, to be applied to air and sea transportation
traffic.

"We are currently studying the possibility of adopting the
system in controlling ship traffic in ports. I hope there will be
some parties interested in this project," Agung said.(43/gis)