Thursday, July 30, 2015

Boeing ends contract with HAL over ‘poor quality’ of production

New Delhi: US defence major Boeing has terminated a contract with state-run Hindustan Aeronautics (HAL) for component supplies to the former’s war and commercial planes being inducted into the Indian Navy.
Boeing’s decision came after repeated reminders to HAL about its “poor quality” of production, sources said, adding that the US company’s move underlined the need for better strategies by India’s policymakers in order to bolster the order books of defence PSUs.
Boeing has over the last few years shifted its component sourcing requirements in India to private companies — Tata Group, Dynamatic Technologies, Rossell Techsys and others.
Under a $4.7-million contract signed with Boeing in 2010, HAL was to provide weapons bay doors for eight P-8I long-range maritime reconnaissance and anti-submarine warfare aircraft that the former would supply to the Indian Navy.
The contract with HAL for equipment for the P8I, through its avionics division in Hyderabad, was the first P-8I offset package that Boeing had directly executed with India’s largest aerospace company. In addition to its work on the P-8I programme, HAL was to also supply Boeing with gun bay doors and wire harnesses for the F/A-18E/F Super Hornet and uplock boxes for the 777 commercial airplane.
30/07/15 Huma Siddiqui/Financial Express
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