CHINESE TEAM TO RESOLVE MNA-XAC DISPUTE

Beijing, Apr 13 (ANTARA) - China is set to send a team of its government officials to Indonesia to help resolve the dispute between Merpati Nusantara Airlines (MNA) and Xi'an Aircraft Industry Co. Ltd. (XAC).

"China will next week send a team of officials to resolve the problem between the two airline companies," Indonesian Ambassador to China Sudrajat said here on Sunday.
Sudrajat said he would accompany the team of top officials from the Chinese trade ministry and other relevant agencies during their Indonesian visit.
During their stay, the Chinese officials would meet with their Indonesian counterparts from the trade ministry and other ministries assigned to speed up the settlement of the dispute, he said.
He underscored the visit was very important in efforts of both sides in solving the problem in a cordial and mutually beneficial way.
"Later a team of Indonesian officials will also come to China for the same purpose," he said.
On Monday (April 6), the ambassador visited the Chinese airline company at Xi'an in Shaanxi province to discuss various agenda with the airline company.
"We had positive talks with the airline company. They want the problem to be resolved immediately on a mutually beneficial basis," he said.
Trade relations between the two countries once turned sour following the dispute over Merpati's plan to purchase 15 planes built by Xian Aircraft Industry Company Ltd for US$15 million, the equivalent of Rp180 billion.
Two of the 15 planes have already been delivered, but later Merpati reduced the number of the planes it had ordered on the grounds their price was too high.
The Chinese company rejected Merpati's request and later filed a Rp1 trillion law suit against the indonesian state-owned airline company.