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US Firms May Have An Edge Over In Big Deals
BANGALORE: Defence deals, unlike in most other sectors, are not sealed at open events but result from long-drawn negotiations, often involving two countries and seldom restricted to two companies. Yet, events like Aero India provide a platform to firms wanting to bag big deals and countries trying to woo the best in the business.
At the 11th Aero India beginning Tuesday, experts say, firms from the US are likely to hold the 'Trump' card as compulsions of global politics in general and aggression of the Donald Trump regime, in particular, sees India walking with the US in the coming years.
But the most spoken about defense deal in the country will be the IAF's single-engine fighter aircraft. The IAF in November 2016 floated a request for information (RFI) for the fighter plane which has already received a positive response.
Experts, however, say the two contenders, given IAF's requirements, will be the Lockheed Martin F-16 and the SAAB Gripen. Both the firms, US' Lockheed and Swedish SAAB, are offering planes better than they did for the medium multi-role combat aircraft (MMRCA) deal which Dassault's Rafale bagged. Lockheed is offering the F-16 block 70, while SAAB will bring the Gripen-E, its next generation aircraft.
Randall L Howard, F-16 business development head, had told TOI that the firm was not selling a dead aircraft and that the IAF would be getting the best in the class. Lockheed has also offered to move a production line to India as part of the deal. "...Not only will India be making for India, but also for the world," he had said.
Taking a dig at Lockheed, SAAB India Technologies chairman and MD Jan Widerstrom said last week: "We are not looking at shifting an old production line that will allow India to build 100 old aircraft. We are looking at forging a partnership that will see the country build capabilities to build a next generation aircraft that will serve its armed forces for the next 100 years."
While sources in the IAF said the Gripen is a new and better aircraft compared to the F-16, which has only been updated, experts say that the latter may still have an edge. Air Marshal BK Pandey (retd) said, "Given the present political scenario and the kind of ties we are looking at having with the US, the F-16 looks like the aircraft. Just buying that, however, would be foolish."
Another expert pointed out that if the F-16 deal has to come through then there needs to be some policy change in the US pertaining to Transfer of Technology (ToT) which may take years — but the IAF's need is immediate.
http://www.indiandefensenews.in/2017/02/us-firms-may-have-edge-in-big-deals.html
BANGALORE: Defence deals, unlike in most other sectors, are not sealed at open events but result from long-drawn negotiations, often involving two countries and seldom restricted to two companies. Yet, events like Aero India provide a platform to firms wanting to bag big deals and countries trying to woo the best in the business.
At the 11th Aero India beginning Tuesday, experts say, firms from the US are likely to hold the 'Trump' card as compulsions of global politics in general and aggression of the Donald Trump regime, in particular, sees India walking with the US in the coming years.
But the most spoken about defense deal in the country will be the IAF's single-engine fighter aircraft. The IAF in November 2016 floated a request for information (RFI) for the fighter plane which has already received a positive response.
Experts, however, say the two contenders, given IAF's requirements, will be the Lockheed Martin F-16 and the SAAB Gripen. Both the firms, US' Lockheed and Swedish SAAB, are offering planes better than they did for the medium multi-role combat aircraft (MMRCA) deal which Dassault's Rafale bagged. Lockheed is offering the F-16 block 70, while SAAB will bring the Gripen-E, its next generation aircraft.
Randall L Howard, F-16 business development head, had told TOI that the firm was not selling a dead aircraft and that the IAF would be getting the best in the class. Lockheed has also offered to move a production line to India as part of the deal. "...Not only will India be making for India, but also for the world," he had said.
Taking a dig at Lockheed, SAAB India Technologies chairman and MD Jan Widerstrom said last week: "We are not looking at shifting an old production line that will allow India to build 100 old aircraft. We are looking at forging a partnership that will see the country build capabilities to build a next generation aircraft that will serve its armed forces for the next 100 years."
While sources in the IAF said the Gripen is a new and better aircraft compared to the F-16, which has only been updated, experts say that the latter may still have an edge. Air Marshal BK Pandey (retd) said, "Given the present political scenario and the kind of ties we are looking at having with the US, the F-16 looks like the aircraft. Just buying that, however, would be foolish."
Another expert pointed out that if the F-16 deal has to come through then there needs to be some policy change in the US pertaining to Transfer of Technology (ToT) which may take years — but the IAF's need is immediate.
http://www.indiandefensenews.in/2017/02/us-firms-may-have-edge-in-big-deals.html
