DaimlerChrysler Aerospace (Dasa) is in partnership talks with Romania's Aerostar and is considering taking an equity stake in the aircraft upgrade specialist, which is to be privatised.

In a separate move, Aerostar and Thomson-CSF Communications have announced the formation of a Romania-based joint venture to manufacture and supply identification friend-or-foe (IFF) equipment to the country's armed forces.

Romania's state ownership fund, which owns 70% of Aerostar, is expected to announce details of the planned sale within the next three months. The fund aims to find a strategic partner for the company that will give it access to new markets and make a significant investment in developing its capabilities.

Dasa Military Aircraft division president, Aloysius Rouen, confirms the German company's interest in Aerostar as part of plans to expand its Mikoyan MiG-29 upgrade business. The Romanian air force's MiG-21MF Lancers are already being upgraded by Aerostar in partnership with Elbit of Israel. Work on 80 of the 110 aircraft involved is complete.

Aerostar and Elbit are turning their attention to overseas markets for upgrading MiG-21bis aircraft - a sector in which Dasa is interested.

Dasa signed memoranda of understanding with its Russian partners MAPO and Rosvooruzhenie in Paris to offer MiG-29 upgrades to countries such as Hungary and Poland. The companies co-operated to upgrade German MiG-29s inherited after re-unification.

Meanwhile, the Aerothom Electronics joint venture, in which Aerostar has the controlling stake, will hope to build on an IFF contract won by Thomson from the Romanian Ministry of Defence in 1996 to secure a new order.

IFF transponders will be fitted to Romanian air force MiG-21MF Lancers, MiG-29s and IAR330 Puma Socat helicopters. The agreement covers the supply of IFF interrogators for Romania's Lockheed Martin FPS-117 ground-based radars.

Air force MiG-23s and a possible future combat helicopter for Romania are also expected to receive the equipment.

Although Aerothom will initially concentrate on local requirements, Thomson says the possibility of entering export markets is "a question we are discussing".

Source: Flight International