IPTN cancels 'Phoenix' project

BANDUNG (JP): The state aircraft manufacturer Industri Pesawat Terbang Nusantara (IPTN) has canceled a plan to join a tender to replace the ageing fleet of Caribou aircraft operated by the Royal Australian Air Force (RAAF) of Australia.

Tjahjono Satoto, IPTN's head of public relations, told The Jakarta Post and Kompas here Saturday that the aircraft company had halted its CN235-330 "Phoenix" program to develop a special military version of its CN-235 turboprop commuter aircraft to meet RAAF specifications.

Tjahjono said IPTN's management had decided to consolidate its programs amid the country's economic crisis.

IPTN has lost budgetary and extra-budgetary supports from the government since the signing of an agreement between the government and the International Monetary Fund in January.

At present, IPTN priorities are its internal consolidation, the implementation of on-going projects and delivering products to its customers.

With the change in priorities, Satoto said, the company would not be able to finish the CN235-330 planes before 2000, as promised to the Australian government, he said.

Tender AIR-5190 is a US$350 million project to replace the twin-engine Caribou aircraft with 16 to 18 similar planes. (43)