China's Xi'an Aircraft Industry (Group) Company will deliver 13 turboprop passenger planes to Merpati Nusantara Airlines based in Indonesia before the year end, said Meng Xiangkai, chairman of the Chinese aircraft producer, on March 11, 2009.

"We delivered two aircraft to Merpati in August 2007, ahead of schedule. And they have been in good performance," said Meng, adding that the two planes were part of a 15-aircraft sales contract signed in 2006.

By the contract, Xi'an Aircraft is expected to deliver 15 Modern Ark (Chinese Name: Xinzhou) MA-60 passenger planes to the Indonesian airline.

Merpati, however, ran into operational difficulties and could not settle the payment of US$225 million, putting the contract into deadlock, said Meng, on the sidelines of the annual session of the National People's Congress, China's legislative body.

The two sides have been in contacts over the delivery of the remaining 13 planes and have made remarkable progress, said Meng, adding the contract will be fully performed before the end of 2009.

Photograph: One of the two MA-60s delivered to Merpati Nusantara Airlines at Kunming airport on September 1, 2007. Photo by CARNOC.com message board member - chenchangCC.