Tuesday, February 14, 2017

Entry of International Players Could Change India’s Aerospace Landscape Forever

The Aero India 2017 airshow opening today (February 14) at Indian Air Force (IAF) Station Yelahanka, Bengaluru marks the 11th Aero India airshow. Unlike past events dominated by competitors seeking to sell aircraft to India, this time the world’s largest aerospace industries are offering to deliver complete production lines that will roll out today’s fighter jets in India – to provide the Indian Air Force with hundreds of modern, yet affordable fighter jets. Following the selection, the lucky strategic partner will be responsible for establishing the production line in India, most likely by teaming with a local company. If it will be a private or public sector company, the move has the potential to change India’s aerospace landscape entirely, currently dominated by government-run public sector enterprises (PSU) like HAL and the Defense Research & Development Organization (DRDO).
83 Tejas Light Combat Aircraft (LCA) built by PSU Hindustan Aerospace Ltd. (HAL) on order cannot fulfill the IAF thirst for new fighter jets. Locally developed for more than 20 years and built by Hindustan Aeronautics Ltd (HAL), those aircraft are less capable, compared to fighter jets of similar class India could get in the international market. To fill gaps created by MiG-21 and 27 units that are phased out of service, India needs few hundreds of additional jet planes (likely 200 – 250) to stand up and replenish about 20 squadrons in the coming decade.

Two of the more likely suppliers that have proposed to set up production lines in India are Lockheed Martin and SAAB. Lockheed is ready to move here the production of the F-16V, while the Swedish firm will set up a production line of the Gripen E if it wins. Current models of the F-16 and Gripen are performing here at Aero India this week. Both were among the five finalists that competed for the now canceled MMRCA program (won by Rafale). The two companies are expected to establish a production line in India, by teaming with a private industry,
13/02/17 Tamir Eshel/Defense Update
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