Romania's Defense Ministry Executes Bank Guarantee for IAR-99 Aircraft Modernization with Avioane Craiova
Romania's National Defense Ministry executed a bank guarantee for the advance to Avioane Craiova for modernizing 10 IAR-99 Standard aircraft. The contract, valued at RON 41 million, involves upgrades for pilot training. Union leader Victor Peta indicated this impacts 30% of the contract's value, affecting cash flow and risking penalties. Peta urged government intervention due to delays from COVID-19, the Ukraine war, and issues with Israeli partner Elbit Systems. Avioane Craiova has challenged the guarantee in court and aims to continue aircraft deliveries.
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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.
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