Indonesian Political, Business & Finance News

IPTN completes Malaysia order for three airplanes

| Source: JP

IPTN completes Malaysia order for three airplanes

BANDUNG (JP): State-owned aircraft manufacturer PT IPTN handed
over three CN-235-220 airplanes on Tuesday to Malaysia's
airforce.

IPTN president S. Paramajuda said that the handing over of the
airplanes was the last delivery of six airplanes ordered by
Malaysia.

"We delivered the previous three airplanes in late August this
year," he said after the handing over ceremony held at IPTN's
airplane hangar.

In 1995, the Malaysian airforce signed a contract to buy six
CN-235-220 aircraft from IPTN at a total value of US$101.29
million.

The ceremony was attended by Malaysian Airforce Commander Let.
Gen. Dato' Sri Ahmad Saruji bin Che Rose and Malaysia's joint
force commander Gen. Tan Seri Dato' Seri Molid Zahidi bin Haji
Zainudin.

The Malaysian envoys arrived on one of the three 235-220
airplanes delivered in August.

After the handing over ceremony, the three new airplanes took
off, carrying all the Malaysian senior envoys, on a convoy trip
back to Kuala Lumpur piloted by Malaysian airforce pilots and
accompanied by their IPTN partners.

Paramajuda said that IPTN was now struggling to survive
through a corporate restructuring and business diversification,
following the government's decision last year to cut financial
assistance to the airline manufacturer.

Earlier reports said that IPTN had diversified its business by
producing high tech equipment other than aircraft and
manufacturing defense equipment for the government.

In addition, it was also "leasing" its expert staff to other
aircraft makers.

At present there are around 20 of IPTN's aircraft specialists
working with Canadian aircraft maker Downier on its Downier 728
aircraft development project. Several others have been hired by
the U.S Boeing Co. for its model-structure test project,
according to the company.

Paramajuda also added that the company was also in the process
of acquiring certification for its prototype N-250 turboprop
airplane in a move to achieve expanded income from wider sales of
airplanes.

"The N-250 prototype, the first plane wholly designed by
Indonesians, needs another 400 flight hours of the targeted 2,000
flight hours in tests for its certification," he said adding that
to continue the certification process the company needs external
funds.

According to Paramajuda, several foreign investors have
declared their interest in helping finance the project, subject
to the country's political stability.

Usually it takes one year to complete 1,000 flight hours, the
company said.

He said that firstly the focus was to get certification from
the Indonesian Certification and Airworthiness Office and the
Joint Airworthiness Authority in Europe.

"The United States' Federal Aviation Authority certification,
which applies overly restrictive rules will come later.

"The certification from all these three agencies is important
as we have already received a number of orders for the N-250. In
order for the airplane to fly it needs international
certification," he said. (43/udi)

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