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

"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 Xinzhou Modern Ark MA-60 passenger planes to the Indonesian airlines.

Merpati, however, ran into operational difficulties and could not settle the payment of 225 million U.S. dollars, 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.

Source:Xinhua