Romania's National Defense Ministry executed on Thursday the bank guarantee for the advance paid to Avioane Craiova under a contract to modernize 10 IAR-99 Standard aircraft, with the funds returned to the Ministry and the agreement set to continue under revised terms, Ministry spokesperson Daniel Nistor said.
The contract, worth about RON 41 million, covers upgrades to trainer jets used for pilot instruction, including transition to F-16 aircraft, agerpres reports.
Avioane Craiova's union leader, Victor Peta, said the move affects roughly 30% of the contract value and severely impacts the company's cash flow, warning of possible penalties and financial strain. He argued the measure is controversial as the company is under special administration and should be protected from enforcement.
Peta attributed delays to unforeseeable factors such as the COVID-19 pandemic, the war in Ukraine and difficulties involving Israeli partner Elbit Systems. He called for government intervention to keep the program on track.
Avioane Craiova CEO Nicu Falcoi said the company has challenged the guarantee execution in court and is seeking to continue deliveries. Two aircraft are completed, with several more nearing readiness, he said, adding the contract can proceed if deliveries are unblocked.
Comentează