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4/29/11

Military Jet deal: EU has the last laugh on defence deal

The Ministry of Defence (MoD) strictly went by results of field evaluation trials carried out by the Indian Air Force in short listing two European companies for the 126 combat jet contract, estimated to be $10.4 billion, and ignored political considerations in the form of pressure exerted by the US administration.Eurofighter Typhoon of European consortium EADS and Rafale belonging to the French company Dassault Aviation were the two aircraft that met the most of 600-plus technical parameters prepared by the IAF. The 600 parameter flight evaluation system was the most extensive used anywhere in the world to test fighter jets. Such has been the results that IAF chief P V Naik had even talked about getting the process patented. The biggest challenge now would be the price negotiations, as for the first time, life cycle costs would be factored in an arms contract in India instead of only the product value.

Defence Minister A K Antony endorsed these results and blocked political pressure as he even refused to give dates to his US counterpart Robert Gates who wanted to see him last month before the announcement of the deal. Not only the US official delegation, Antony had even turned down requests from all the six aviation companies in fray for the IAF contract, signaling he would go only by the field evaluation report.The US and its companies reacted cautiously for being kept out of one of the biggest deals because some more lucrative contracts are lined up in the coming months. Though they claimed to be deeply disappointed, they are not yet jumping the gun to launch any protest. Boeing is in the final stages of negotiations with the MoD on the sale of 10 C-17 Globemaster super heavy transporters. The deal, estimated to be $ 4.1 billion, is expected to be finalised anytime.

For more: Jet deal: Europe has the last laugh | Defence deal | military aircraft | Indian Express

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