Article

Romania's National Defense Ministry executed a bank guarantee related to a contract with Avioane Craiova for modernizing 10 IAR-99 Standard aircraft, valued at RON 41 million. This contract includes upgrades for training pilots transitioning to F-16 aircraft.

The execution affects approximately 30% of the contract's value, which could lead to cash flow issues and potential penalties, as noted by union leader Victor Peta. He cited delays caused by the COVID-19 pandemic, the Ukraine war, and complications with Israeli partner Elbit Systems. Avioane Craiova's CEO Nicu Falcoi stated the company is contesting the guarantee execution legally and is working to continue aircraft deliveries, with two aircraft already completed.