IPTN's aircraft fails to take off

IPTN's aircraft fails to take off

BANDUNG (JP): State aircraft manufacturer IPTN has halted its
ambitious project to build a passenger jet due to financial
difficulties, a company executive said here on Thursday.

IPTN director of technology Agung Nugroho said it was simply
unrealistic to continue the expensive project at the moment.

"About 2,500 engineers who are involved in the project will
be transferred to a more feasible project," he said during a
break in a seminar being held in the provincial capital of West
Java.

IPTN, which at one time was chaired by former president B.J.
Habibie, has suffered severe financial problems since the
government cut its funding for the aircraft manufacturer early
last year.

The cancellation of government assistance has affected nearly
all of IPTN's projects, particularly the development of its N-250
turboprop passenger plane and N-2130 passenger jet.

Former president Soeharto established PT Dua Satu Tiga Puluh
in 1996 to finance the US$2 billion jet project. The company,
however, was liquidated following the resignation of Soeharto in
May, 1997.

The N-2130, the second aircraft to be designed and engineered
entirely in Indonesia, was scheduled to enter the market by 2005.

IPTN's first locally designed aircraft, the N-250 turboprop
passenger plane, made its maiden flight in August 1995.

Agung said the certification of the N-250 prototype, which has
currently booked 800 flight hours, was also stalled due to
financial difficulties.

"The N-250 aircraft still needs 1,200 additional flight hours
to get the certification, which will cost about $9 million," he
said.

He said the aircraft manufacturer had approached several
foreign investors in an attempt to secure the funding for the N-
250 project.

"Negotiations are now underway with some of them, but I cannot
reveal their names yet," he said. (hen/43)