BRENDAN SOBIE / SINGAPORE

IAe ready to sign risk-sharing agreement with Harbin to produce transports to replace army's licence-built Bell 412s

Indonesian Aerospace (IAe) is in talks with China's Harbin Aircraft Industry to licence-produce Z-9A helicopters for the Indonesian army, which has a requirement for at least 20 new transports over the next few years.

IAe says it is offering the army local-built Z-9As to replace its fleet of ageing licence-built Bell 412s. The company is seeking a new helicopter project as part of its latest business plan, and is ready to sign a risk-sharing licence agreement with Harbin if the army accepts its proposal.

Harbin began building Z-9s in 1992, under a licence agreement with Eurocopter. The aircraft is based on Eurocopter's AS365 Dauphin.

IAe says it has not included Eurocopter in its discussions with Harbin, and while Eurocopter says it could build Z-9A airframes without its support, the Indonesian company could have trouble acquiring the necessary blades and gearboxes without Eurocopter's assistance.

IAe approached Eurocopter last year with a proposal to licence-build EC120 Colibri light helicopters and potentially other models, but the European company says it decided against investing in IAe. Eurocopter also has decided against extending a licence agreement covering AS332 Super Puma production, which expires early this year.

Industry sources say Bell is trying to convince the army to instead buy new 412s, which it says is a more cost-effective solution since IAe still has 412 tooling.

On the fixed-wing side, IAe has decided to maintain its CN-235 twin-turboprop utility aircraft manufacturing line, and plans this year to deliver four or five of the nine aircraft in its order backlog.

Pakistan is scheduled to receive its first of three on 28 January, with Malaysia also to receive one aircraft this year. IAe's first maritime-patrol variant of the CN-235 is scheduled for delivery before year-end, but technical challenges in installing the Thales mission system could delay this until 2005.

In addition, IAe is trying to sell six more CN-235s to Malaysia, up to three aircraft to Libya and one to Thailand.

Source: Flight International