Thursday, July 23, 2009

DTN News: Boeing, Lockheed Hail US-India Defence Deal

DTN News: Boeing, Lockheed Hail US-India Defence Deal *Source: DTN News / AFP (NSI News Source Info) NEW DELHI, India - July 23, 2009: Two US defence industry giants, each vying for a huge fighter-jet contract with India, Wednesday hailed a bilateral accord promising to open the door to greater military commerce between the countries. “The F-16IN is the most advanced F-16 ever,” said Chuck Artymovich, the company’s director, business development. Many in India might think Americans are fully absorbed in the Hillary, Obama or Romney campaigns but for Artymovich and his team, it’s a season of a full-time “India campaign”. Will the campaign lose momentum if the Indo-US nuclear deal falls through? Richard Kirkland, Lockheed Martin’s South Asia president, insists it won’t. “It has already got the backing of the US government and a go-ahead from the US Congress,” he says. Many in India, however, may not agree with him as they would not like to take a favourable US foreign policy for granted. Lockheed Martin hopes to give a detailed proposal soon to the US government on the features and price of the F-16s on offer to India. The US government, in turn, will make a proposal to the Indian government offering F-16s and F-18s. Incidentally, the F-18 Super Hornet, built by Boeing, is not to be mistaken for an upgraded version of the F-16. The Super Hornet is a supersonic carrier-based fighter aircraft and currently its only user is the US navy. The other aircraft competing for the Indian Air Force’s contract are the Russian MiG-35, the French Dassault Rafale, Eurofighter Typhoon being offered by a consortium of European aerospace manufacturers and Swedish company Saab’s Gripen. Lockheed Martin and Boeing are neck-and-neck in the race for the world's richest fighter aircraft deal in 15 years, worth almost 12 billion dollars, to sell 126 jets to the Indian Air Force. On Monday US Secretary of State Hillary Clinton and her Indian counterpart S.M. Krishna agreed on an "end-use monitoring" arrangement that would provide safeguards for the sale of sophisticated US weaponry to India. Clinton said the deal, which also provides for co-operation in providing nuclear technology, would pave the way for billions of dollars in exports of military hardware and civilian reactors to technology starved India. Vivek Lal, India head of Boeing Defence Integrated, praised the accord as a "cornerstone of the increasing trust forged by both countries." "The agreement will make it easier to share important US defence technology with India," he said in a statement. "Boeing looks forward to working within the framework of this agreement to support India in modernising its defence forces," he said. Boeing is touting its F-18 "Superhornet" while Lockheed Martin is offering a the F-16 to the Indian Air Force, the world's fourth-largest. Richard Kirkland, Lockheed Martin's South Asia president, also applauded the deal. "We look forward to supporting the requirements of the Indian armed services in partnership with Indian industry," Kirkland told AFP in an email. Industry sources say Boeing and Lockheed have emerged as frontrunners in the bidding for the 126-jet contract, which is also being sought by European Russian, French and Swedish contractors. The European Aeronautic Defence and Space Company has offered its Typhoon Eurofighter, while the Russian manufacturers of the MiG-35 and MiG-29 along with Sweden's Saab, which makes the Gripen fighter, are also in the running. French firm Dassault Aviation is offering its Rafale fighters but these are viewed by defence analysts as too costly for India. India is slated to begin field trials of the aircraft in the race for the contract next month. The trials will continue until July 2010. India issued the request for proposals to the six short-listed global aviation giants in August 2007 and the companies submitted their bids last year. The contract includes the outright purchase of 18 fighter jets by 2012 with another 108 to be built in India under a "transfer of technology agreement." India also wants the option to buy 64 more jets. It is the largest arms buyer among emerging economies. India announced in March it plans to buy six Hercules transport planes from Lockheed for nearly one billion dollars, marking the country's biggest ever military aircraft deal with the United States. In January, India signed a 2.1-billion-dollar deal with Boeing to buy six maritime surveillance aircraft for the Indian navy.

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