Indonesia and Malaysia are trying to resolve financial and certification issues that have threatened to derail the delivery of six IPTN CN-235 tactical transport aircraft for the Royal Malaysian Air Force.

The Malaysian defence ministry has been re-examining its planned acquisition of the aircraft in the light of its concerns over the long term future of IPTN. The Indonesian aircraft manufacturer has been hard hit by the regional economic crisis.

All six of the CN-235-200s have been built, and IPTN hopes to receive military type certification for the aircraft in July.

Senior Indonesian sources say that the two countries are also working towards resolving outstanding issues on a letter of credit covering the sale of the aircraft.

The CN-235 programme remains critical to the manufacturer if it is to recover from the current crisis. Production of the CASA CN-212 is now complete, although the final 16 out of a total of 108 built have yet to be delivered to the Indonesian armed forces. The delay in delivery is understood to have been caused by the armed forces' inability to pay for the final batch of aircraft.

IPTN is working toward delivery of the first of four United Arab Emirates CN-235 maritime patrol aircraft in 2001.

It continues to pursue what it considers are realistic export opportunities in Greece, the Philippines, and Taiwan for the maritime patrol variant.

Source: Flight International