Boeing offers joint production of F-18 fighters in India

Thursday, 01 February 2007, 18:30 IST
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New Delhi: The race for an Indian Air Force (IAF) order for 126 combat jets just got hotter, with US aerospace major Boeing offering to jointly produce the frontline F-18 Super Hornet in India if it wins the contract. "In the F-18, we have arguably the most advanced fighter in the world. If we win the contract, we offer the opportunity of entering into a joint production arrangement with an Indian defence contractor," said Chris Chadwik, Boeing Vice President and General Manager, Global Strike Systems. "Clearly, there is very strong competition but we believe we are positioned very strongly," he added. Should the deal come through, India will be the first country outside the US where the F-18 is produced. It will also be the first time Indian companies will be able to participate in the production of a US fighter. India's premier Hindustan Aeronautics Limited (HAL) currently produces the Sukhoi Su-30 and MiG-series of Russian jets, as also the British Jaguar. Brian Nelson, who heads the International communications wing of Boeing Integrated Defence Systems (IDS) that manufactures the F-18, feels that an IAF order would mean the first eight aircraft would be shipped off-the-shelf and the remaining jointly produced in India. The two officials spoke to IANS via a teleconference from their St. Louis headquarters. Toward this end, Boeing would be aggressively positioning the F-18 at the upcoming Aero India 2007 International air show at Bangalore Feb 7-11, with one aircraft performing aerial manoeuvres and another on static display. This apart, the C-17 Globemaster strategic lift transport and the Chinook CH-47 helicopter troop carrier, as also a large scale model of the P8I maritime reconnaissance aircraft that has been offered to the Indian Navy, will also be on display. Boeing plans to take aloft select dignitaries on the F-18, the C-17 and the CH-47 during the air show to enable them to experience first hand the capabilities of the aircraft and their cutting edge technologies, Nelson said. A host of senior Boeing executives from the company's defence and civilian wings would also be attending the show. "We view this (Aero India) as the start of a journey to establish a real and lasting relationship with (the) Indian (defence) industry to fulfil their requirements," Chadwik pointed out. "We see more and more involvement in the defence sphere as India will get to see Boeing as a friend to create business opportunities. We see opportunities for long-term business relationships. "A decade down, when we look back, we will be able to see the good opportunities that have been created," Chadwik added. The IAF had in 2001 projected a requirement of 126 multi-role combat aircraft (MRCA) to replace its ageing fleet of MiG-21 and MiG-23 Soviet era fighters. The new planes are expected to arrive by 2010, with the deal expected to cost in the region of $6-11 billion (265-485 billion). In 2004, a request for information (RFI) was sent out for four jets - the US F-16, the Russian MiG-29, the French Mirage 2000-5 and the Swedish JAS-39 Gripen. In addition, the manufacturers of the F-18, the French Rafaele and the four-nation European Typhoon also sent in their offers. And last month, Russia made known its intention to bid for the IAF order with its MiG-23, essentially a Mig-29 with a slightly different profile but with a more powerful engine. A request for proposal (RFP) was to have been sent to the short-listed manufacturers in 2005 but this is nowhere in sight, even as the IAF's fighter squadrons have dwindled to 30, against a sanctioned force level of 39 1/2 squadrons. This has led to reports that the IAF's requirements have risen to the region of 200 aircraft. The MRCA issue has acquired added importance in view of the US decision to sell 36 new F-16s to Pakistan. The Pakistan Air Force had received its first F-16 in 1982 and another 39 by 1987, after which the US Congress blocked further sales. Thirty-two of the original 40 aircraft are currently flying. The IAF chief, Air Chief Marshal S.P. Tyagi, has gone on record saying the delay in sending out the RFP is due to the government's newly formulated defence procurement policy. Apart from laying down that equipment purchases must incorporate a life-cycle cost element, the policy also contains an "offsets" clause under which 30 percent of all deals worth over 3 billion has to be reinvested in India by way of purchases or by creating infrastructure. Offsets, according to Nelson, were not an issue. "We are very comfortable with offsets. We have executed $27 billion dollars of offsets in 35 countries and our partners have been more than happy with the results," he maintained. "Boeing is not just looking at obligations it has to fulfil but at opportunities to develop long-term partnerships with long-term benefits for Boeing and Indian companies," Nelson contended.
Source: IANS