KL still plans to buy CN-235s

KL still plans to buy CN-235s

KUALA LUMPUR (AP): Malaysia will not cancel an agreement to buy six CN-235 transport aircraft manufactured by Indonesia's state-owned Industri Pesawat Terbang Nusantara, despite a delay in delivery.

Defense Minister Syed Hamid Albar said Saturday he had assured Indonesia that the contract would be honored. The planes should have been delivered by the end of last year.

"We are happy to hear from the Indonesian government that they will deliver the first batch of planes in June," he told reporters.

Malaysia signed an agreement in February 1995 to buy the planes for US$71 million, but not a single plane had been delivered to the Malaysian Armed Forces, he was quoted as saying by the official Bernama news agency.

In return, Indonesia was to buy 1,500 Malaysian-made Proton cars and 20 MD3-160 light aircraft manufactured by SME Aviation.

The Indonesian planes will replace the Canadian-made Carribou aircraft, used by the air force for the past 30 years.