IAe poised for major boost as Seoul aims to sell submarines and buy CN-235s
South Korea is in talks to buy up to 30 Indonesian-built Airtech CN-235 transport aircraft in exchange for selling Indonesia two submarines.
The contract would provide a major boost for ailing Indonesian Aerospace (IAe), which needs to line up new CN-235 orders to keep its production line going beyond 2005. IAe confirms it is "in early talks" to sell 30 CN-235s to South Korea, but industry sources say the deal ultimately may involve only a handful of aircraft.
The new aircraft would bolster eight CN-235s delivered to South Korea by IAe in exchange for Indonesia's earlier purchase of seven Korea Aerospace Industries KT-1 trainers. South Korea also operates 12 EADS Casa-built CN-235s. South Korea's air force initially had a requirement for 24 small transports and sources suggest this may limit any follow-on buy to just four CN-235 transports, plus perhaps two CN-235 maritime surveillance aircraft.
IAe, however, is lobbying the Indonesian government to become the full benefactor of the barter deal with Seoul, which equates to 30 CN-235s given the $600 million price tag for the submarines. The company says the counter-trade contract is likely to be awarded next year, when the Indonesian navy is expected to proceed with its submarine purchase. Aircraft deliveries will begin roughly two years later.
IAe has an order backlog for eight CN-235s for Indonesia, Malaysia and Pakistan. Four will be delivered this year and the remainder during 2005. The company says it is also poised to sign a contract with Bangladesh for two CN-235s for delivery in 2006, but industry sources say Bangladesh has not yet decided between IAe- or EADS Casa-built aircraft.
IAe, which has been undergoing a massive restructuring since briefly shutting down last year, has identified the CN-235 as its only current aircraft production line with a viable long-term future. The manufacturer is eyeing several potential new helicopter products, but so far has been unsuccessful at forging partnerships with foreign manufacturers. The company also needs a further $8 million in loans to meet delivery requirements for the rest of this year and plans to complete assembly of partially manufactured Bell 412, Eurocopter BO105 and NAS332 Super Puma helicopters this year.
BRENDAN SOBIE / SINGAPORE
Source: Flight International
