Friday, November 09, 2012

Dirgantara, Airbus Military to make new aircraft in Bandung, Indonesia

State-owned aircraft maker PT Dirgantara Indonesia (PT DI) has signed a deal with Spain-based Airbus Military to revise its proposed C212-400 aircraft to include more seats and new equipment.

The aircraft, to be renamed the NC212, will be offered to both military and civilian customers and come equipped with new avionics and autopilot systems. The NC212 will have 28 passenger seats, up from the current 25.

“We will work together to manufacture and market the NC212 aircraft worldwide, offering modern, very competitive light military and civil aircraft that will result in strengthening the position of PT DI as a leading player in the Southeast Asia region,” PT DI president director Budi Santoso said on the sidelines of the signing ceremony on Thursday during the Indo Defence 2012 Expo & Forum at the JIExpo in Kemayoran, Jakarta.

“The aircraft will be manufactured in our facility in Bandung [West Java]. We are going to spend US$15 million to upgrade the facility to be able to create the new aircraft.”

The companies have had in place joint working teams at PT DI’s facilities in Bandung, including Airbus Military personnel deployed on-site, since October 2011.

Budi said that the firm would like to capture about 30 percent of the total potential market for the medium transport aircraft of 400 to 450 units over the next decade.

“We expect to start production of the new aircraft in the next 18 months, because we need to upgrade our facilities first. We plan to produce five to six aircraft a year,” he added.

Budi said that he was optimistic about grabbing a 30 percent market share since the company had received assistance from the Defense Ministry to promote its products to ASEAN member nations and could also take advantage of Airbus Military’s worldwide networks.

Also at the expo, Ignacio Alonso, Airbus Military’s senior vice president for commercial, strategy and industrial relations for Asia, said the collaboration would yield growth for both companies and that Airbus Military was committed to long-term cooperation with PT DI.

“This is the further proof of our increased cooperation with Indonesia. With the continued support of the Indonesian government, PT DI and Airbus Military will be able to achieve many great things together,” he said.

While the companies have yet to receive external NC212 orders, Alonso said that many customers have shown interest in the aircraft.

“That is why we launched it. We do not have a contract to sign but we have signed a Letter of Intent with different nations,” he added.

PT DI has secured a domestic contract worth Rp 8.2 trillion ($862.64 million) for the purchase of 40 airplanes and helicopters for the Indonesian Military (TNI) this year.

The contract, its largest-ever domestically, calls for nine CN-295 twin-turboprop tactical military transport aircraft and six EC-725 long-range tactical transport helicopters for the Air Force as well as 25 Bell-412EP utility helicopters for the Army.

Last year, PT DI delivered three Bell-412EPs to the Navy, four to the Army and two Eurocopter AS-332 Super Puma four-bladed, twin-engine, medium-size utility helicopters to the Air Force.


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