Venezuelan airline signs deal to buy four N-250

JAKARTA (JP): Air Venezuela, a private Venezuelan airline, signed a memorandum of understanding here yesterday to buy four N-250 aircraft from state-owned aircraft manufacturer PT IPTN, with an option to buy another four.

Under the deal signed by IPTN president B.J. Habibie and Air Venezuela president Willian Medina C., the aircraft maker will deliver the N-250s beginning by the end of 1999.

"It's not ethical to disclose the value of the deal. But we have a competitive price, that's why they (Air Venezuela) came to us," said Habibie, who is also State Minister of Research and Technology.

Dror Kassab Ruben of Air Venezuela said his company was set up two years ago. "With 10 Convair-580 aircraft, we are currently serving five destinations which will gradually increase in the coming years."

Both IPTN and Air Venezuela refused to disclose details of the payment arrangements. But Habibie said IPTN would only receive cash, even though there would probably be a countertrade scheme applied in the deal.

IPTN has so far signed counter-purchase deals with Malaysia and Thailand for the sales of its CN-235 aircraft. The CN-235 has been developed jointly by IPTN and Casa of Spain.

In exchange for the CN-235s, Indonesia has received sticky- rice from Thailand and Proton cars from Malaysia.

Minister of Industry and Trade Tunky Ariwibowo, who witnessed the signing yesterday, said countertrade was normal practice between nations.

IPTN launched the maiden flight of its first N-250 prototype in August 1995, the country's first domestically designed medium- range commuter aircraft. At that time, IPTN estimated the cost of the aircraft at between US$13.5 million and $14.2 million.

A director of IPTN, Salomo Pandjaitan, said last month that his company had signed an agreement with Pakistan worth $216 million for the purchase of eight N-250s.

Habibie said yesterday that the N-250, the first aircraft of its size to use fly-by-wire technology, competed with three other airplane makers manufacturing the same type of aircraft.

"We've so far received orders for 227 N-250s, 10 percent of which are for export," he said.

IPTN has said that 259 N-250s have to be sold to break even.

Habibie said he expected to see certification of the N-250 by the Ministry of Transportation by mid-1999. "By the end of 1999 or in early 2000, we expect to see the N-250 certified by the FAA or GAA," he said.

He said the N-250 had completed 650 flight hours, more than the 400 hours required for certification.

"The second prototype has flown for some 60 hours, while the third prototype will get off the ground in April," he said.

IPTN has built four N-250 prototypes named after the figures of the ancient Mahabarata epic.

In addition to the N-235 and the N-250, IPTN will develop the N-2130, a 130-seat passenger jet. The design, engineering and construction of the N-2130 prototype, led by Habibie's eldest son Ilham Akbar Habibie, will take at least eight years and cost at least $2 billion. It is expected to be ready in 2006. (icn)