BRENDAN SOBIE / SINGAPORE
Indonesian company ceases all operations to concentrate on a plan to include staff cuts and closing unprofitable units
Indonesian Aerospace (IAe) has temporarily ceased all operations until it can plot a restructuring that requires mass layoffs, the closing of unprofitable business units and an infusion of new capital.
The government-owned manufacturer and maintenance provider suspended all 9,670 of its staff on 12 July and closed its main facility at Bandung. IAe is fighting to reopen some of its businesses, including helicopter maintenance, by the end of July, with a much smaller staff of between 500 and 3,000.
The company, formerly known as IPTN, has assured customers that all contracts, including outstanding orders from Asian military operators for seven CN235s, one CN212 and 11 NAS332 Super Pumas, will be met. But partner companies do not expect any of the manufacturing lines to be sustained once partially built aircraft are finished.
IAe is pinning its hopes on the maintenance and service sector, and possibly supplying larger manufacturers with components. IAe is an authorised Eurocopter service centre for the Super Puma, NSA330 Puma and BO105 and may add new lines if the restructuring is successful.
But industry sources say the company will have to fight competition from private Indonesian companies that have gained market share in recent years as IAe struggled to keep parts in stock and provide cost-competitive maintenance.
Most Indonesian BO105 operators have already switched to Adhiprayasa Pratama, a privately owned Eurocopter service centre - also seeking to add new lines.
IAe manufactured about 120 NBO105s under a licensing agreement with Eurocopter, with five still unsold, and has built about 40 Pumas, 15 Super Pumas and 30 Bell 412EPs. Another private Indonesian company, Kalimasada Pusaka, services most of the 412s and may gain business if IAe shuts down for good. Malaysia's Airod, Singapore Technologies Aerospace and Spain's EADS Casa also could benefit.
IAe was already planning to stop 412 and NBO105 production. Financing problems have delayed delivery of two almost-finished Super Pumas, but the other nine ordered by the Indonesian air force will probably not be completed.
Source: Flight International
