Tue, 18 Jun 1996

Turkey accelerates its CN-235 aircraft production

By T. Sima Gunawan

ISTANBUL, Turkey (JP): Turkey has built 30 CN-235 aircraft since 1984 and aims to build another 20 in the next two years, an official of Turkish Aircraft Industries Inc. (TUSAS) said.

The company's technical service manager, Muharram Dortkasli, told The Jakarta Post here over the weekend that the aircraft are produced by TUSAS's subsidiary, TUSAS Aerospace Industry Inc. (TAI).

TUSAS, whose local name is Turk Ucak Sanayii A.S., was established on June 28, 1973 by the Ministry of National Defense and the Turkish Armed Forces Foundation.

In 1984, TUSAS, in a consortium with Turkish organizations and U.S. companies, established TAI with up front capital of US$137 million. TUSAS now owns 49 percent of TAI, Lockheed of the United States owns 42 percent, General Electric owns 7 percent, Turkish Armed Forces Foundation owns 1.9 percent and Turkey Air League owns 0.1 percent.

TAI has also produced 160 F-16 planes. In the next three years, the figure will be 240, Dortkasli said.

Asked if TAI produces CN-235s and F-16s under license from CASA of Spain and Lockheed of the United States, Dortkasli said that TAI co-produced the planes with CASA and Lockheed.

In 1980, Indonesia's PT Industri Pesawat Terbang Nusantara (IPTN) and CASA of Spain announced their plans to develop the CN- 235 aircraft. The two parties agreed to develop the commuter aircraft through a Spanish joint venture company, Aircraft Technology Industry (Airtech), which is owned equally by IPTN and CASA. Either IPTN or CASA may assemble the aircraft.

Dortkasli said some components for the CN-235 have been provided by IPTN through CASA.

"We signed the contract with CASA, not with IPTN, and it is CASA which supplies the components," he told the Post.

He said that almost 90 percent of the aircraft's frames, are produced in Turkey.

The 30 CN-235 aircraft are currently operated in Turkey, but Dortkasli indicated that there is a possibility to export the planes.

"Marketing of products to other countries is the decision of related governments and prime contractors," he said.

Indonesian Ambassador to Turkey, Soelarso, said last week that IPTN began exporting components to Turkey in July 1995.

"Turkey bought the spare parts from IPTN after it realized that the character of "N" in CN-235 stands for Nusantara," Soelarso told Indonesian journalists in Turkey.

He regretted that IPTN had not made greater efforts to market its products in Turkey.

"It's too bad that our marketing is weak. We can manufacture (the aircraft and its components) but we can't sell them," Soelarso said.

According to Soelarso, it was Armed Forces Commander Gen. Feisal Tanjung who informed IPTN about the Turkish business opportunity after a visit to Turkey in 1994. Minister of Research and Technology B.J. Habibie then went to Turkey to market the products.

Soelarso did not say how much TUSAS had paid for IPTN's components, only saying that the total value of Indonesian exports to Turkey in 1995 was $132 million.

TUSAS was established to meet national defense and non- military requirements, and is expected to be able to compete in international markets.

TUSAS aims to manufacture and assemble many types of aircraft, helicopters and other flying machines.

In 1985, TUSAS and General Electric signed an agreement to establish TUSAS Engine Industries Inc. (TEI) with $60 million in capital.

TEI now produces General Electric's F-11 engines for F-16 fighters. It also produces 120 components for 14 other engines. TEI is the only manufacturer of some of these components.

"The future target of Turkish Aircraft Industries is to establish a self-standing industry having design and development capability. Efforts to meet the target are going on intensively," Dortkasli said.