Thursday, September 4, 2008

DI to take over from Spanish aircraft plant

State-owned aircraft manufacturer PT Dirgantara Indonesia (DI) will begin producing the Spanish-designed Casa 212-400 light aircraft in early 2010.

DI president director Budi Santoso said Wednesday the company would start producing the aircraft after Spain-based EADS-Construcciones Aeron*uticas S.A. (CASA) had completed the relocation of its Spanish production facilities to Indonesia.

"The relocation process will take a year. Therefore, the first aircraft will be produced by (the end of) 2009 or in early 2010," Budi said -- as quoted by Antara -- after signing a memorandum of understanding with the Indonesian Navy.

In 1999, CASA became a unit of aircraft and weapons giant the European Aeronautic Defense and Space Company EADS N.V. (EADS).

Budi said the partnership would revive old ties as EADS-CASA had helped establish DI.

"We have promised to build Cassa 212-400s at competitive prices so our planes will sell like hot cakes in the light turboprop carrier market," he said.

The Bandung-based DI will sell the aircraft equipped with an advanced fully integrated tactical navigation system for customers in Southeast Asia, including Indonesia.

The company will also manufacture components to be sold in South America.

Budi said Cassa aircraft were useful in countries that had similar topographies to Indonesia's, including Vietnam, Thailand and countries in Africa.

He also said the companies would offer a variant of the aircraft for use in beach patrol operations.

DI was set up by the government of former president Soeharto in the 1970s as part of an ambitious project to develop a hi-tech aircraft industry in the country. The project was headed by then-research and technology minister B.J. Habibie.

However, in 2003, following the financial crisis of the late 1990s, the cash-strapped government fired thousands of DI's employees as part of a restructuring program to prevent the company from bankruptcy.

The company, which now depends on orders from the Indonesian military and government agencies, also sells its aircraft to neighboring countries in exchange for rice and other agricultural produce.
Source: The Jakarta Post, Thu, 09/04/2008

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