Malaysia's defence ministry is rethinking its contract to buy six CN-235 transport aircraft from IPTN because of concerns over the long-term future of the Indonesian manufacturer.
The RM286 million ($75 million) deal was struck in February 1995. The aircraft were to have been delivered to the Royal Malaysian Air Force from December 1996 to the end of last year. None have been handed over to date.
According to defence minister Syed Hamid Albar, the contract must be discussed again with the Indonesian Government, which owns IPTN, because of the company's failure to deliver, coupled with questions over its future. The Government has withdrawn support from the company after pressure from the International Mone- tary Fund, which is helping to bail Indonesia out of its financial crisis.
Further doubts have been cast by new research and technology minister Rahardi Ramelan's recent statements that the 130-seat N2130 regional jet programme was being re-evaluated as a result of the financial crisis, which he says has cast doubts on its feasibility and funding. Chief executive Bacharuddin Habibie left IPTN early in April to become Indonesia's vice-president.
Under the 1995 agreement, Malaysia was to supply Indonesia with 20 SME Aviation MD3-160 training aircraft, as well as Proton cars, and Malaysia's Airod was to have overhauled four Indonesian C-130 Hercules in Kuala Lumpur.
According to Syed Hamid, the CN-235s were to supplement the air force's Hercules fleet, although some observers say that Malaysia's recent procurement of five additional C-130s has made the Indonesian aircraft unnecessary.
To date, IPTN-built CN-235s are only in service with the Indonesian and Abu Dhabi air force. Brunei Air Wing also has four orders outstanding.
Source: Flight International
