Published: 12/12/1997

PZL Mielec is suffering from major problems with the PZL I-22 Iryda 17, which is now 85% complete towards upgrading. The first problems began when the first modified plane was transferred to the Air Force in September, over the range of tests to be carried out. The Department of Purchases of the Ministry opted for a much wider range than was originally stated in the contract. Mielec made a request to the then Minister Dobrzanski to renegotiate the contract signed in early-1996. Changes were approved by the Minister, but then the government changed. In late-November, Mielec took the decision to pull out of the contract due to a lack of progress with tests which should have been undertaken by the Ministry. Mr. Pastula, President of Mielec Holdings told ConCISe that the contract was underpriced and that over the last few months a number of additional changes were ordered by the Ministry which were not discussed in the original contract. In addition, the Polish Zloty has risen considerably compared to the dollar (by 33%), which has caused huge problems as nearly 40% of the purchases are made from Sextant avionics and ejection seats from Martin Baker. The Iryda project began in the late-70s. Over a twenty year period it has consumed nearly US$300 million, which is comparatively small for the range of project. The sum also includes part of the costs associated with the reorganisation of Mielec in the early 90s. (DF1297.6) (MM)

Article ID: 111