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)