News Report: India Considers Buying Russian Il-78 MRTT After Ending Six Year Old Airbus Deal

An Australian Airbus KC-30A Multi-Role Tanker Transport (MRTT)

High costs and pending inquiries against Airbus has forced India to abort a 2 billion dollar deal with Airbus. Sources say a contract for Russian Ilyusin-78 (IL-78) aircraft is likely to be signed by October of this year.

India has terminated the 2 billion dollar contract for six multi-role tanker transport (MRTT) aircraft with Airbus Defense and Space. This comes as no surprise for observers as the deal was troubled by objections over its high costs. Many officials were also skeptical considering protracted inquiries against the European consortium in India dating back to the 1970's. 

India's Ministry of Defense had shortlisted six Airbus A330 MRTT for the Indian Air Force following a RFP issued six years ago. According to highly placed sources, the Finance Ministry was of the opinion that the aircraft were too expensive and asked the Defense Ministry to look for cheaper options. A new RFP was released, following which the budget was increased to $2 billion and included lifecycle costs in the price arguing that the Airbus plane would work out cheaper in the long term over its Russian competitor if lifecycle costs were to be considered.

News Story: African, Asian States Interested in Buying Modernized Russian Il-76 Planes

Russian Air Force Ilyushin Il-76MD (Image: Wiki Commons)

According to the managing director of aircraft-maker Aviastar-SP, African and Asian states are expressing interest to procure Russia's Ilyushin Il-76-MD-90A heavy military transport aircraft.

African and Asian states are expressing interest to procure Russia's Ilyushin Il-76-MD-90A heavy military transport aircraft, the managing director of aircraft-maker Aviastar-SP said.

"We are receiving calls and appeals over this aircraft. It shows a wide geography of interest among costumers. Commonwealth of Independent States (CIS) members, Southeast Asian and African states express their interest. That is why this aircraft has very good [export] prospects," Andrey Kapustin told RIA Novosti in an interview.

Read the full story at Russian Aviation

News Story: India Is Out, But Russia Continues Developing Il-214 Transport

A 2009 Model of the Ilyushin Il-214 (Image: Wiki Commons)

by Vladimir Karnozov

The Russian government will fund development of the Ilyushin Il-214 medium airlifter and production of about a hundred such aircraft for the Russian Air and Space Force (VKS), according to industry sources close to the program. Allocations for procurement will be provided in the Kremlin's new Armament Program after 2020, following the current program timed for 2010-2020.

The Il-214 is, effectively, a version of the Indo-Russian Multirole Transport Aircraft (MTA). Moscow and New Delhi signed a government-to-government agreement for the MTA in 2007. This was followed three years later by a co-development agreement at the industry level. A newly established Multirole Transport Aircraft Ltd. (MTAL) company based in Bangalore made its first appearance at airshows with a stand at AeroIndia 2010.

The development costs were previously estimated at $600 million, and were to be covered by both parties on equal terms. Serial examples of the aircraft would cost between $35 and $40 million. The global market for the MTA was forecast at 400 units, including special mission versions for electronic warfare, airborne early warning and control, reconnaissance and patrol and airborne tanker.

India’s Hindustan Aeronautics Ltd. (HAL) and its Russian collaborators signed agreements in 2012 that established a joint team of 150 designers in Moscow and Bangalore. The team started working on MTA documentation in December that year. Shortly thereafter, however, the effort was discontinued over disagreements and misunderstandings. In January, Ilyushin general manager Sergei Velmozhkin told reporters: “As a joint project between Russia and India, this project has been halted.

Read the full story at AINonline

News Story: India's Tender for Private-Sector-Built Airlifter May Not Take Off

Avro transport aircraft

1 Potential Bidder So Far

By VIVEK RAGHUVANSHI

NEW DELHI — India’s first attempt to operate a military aircraft-building program involving the domestic private sector appears to be a non-starter as only one potential foreign partner is likely to submit a bid, a Ministry of Defence source said.

With only Spain-based Airbus Defence and Space participating, the program would become a single-vendor contest, which MoD almost certainly would cancel.

On July 19, the Defense Acquisition Council (DAC), the MoD’s top weapons decision-making body, extended the deadline for filing bids to Aug. 28.

DAC reiterated that Hindustan Aeronautics Ltd. (HAL), the state-owned company that has long held a monopoly on local military aircraft manufacturing, would not be given the tender or made the sole production partner.

The DAC initially approved the program in July 2012 and paved the way for floating a global tender.

Read the full story at DefenseNews

News Story: India Awards $1B Contract for 6 More C-130Js

By VIVEK RAGHUVANSHI

NEW DELHI — Top brass in the Indian Army and Air Force expressed shock over the Defence Ministry’s decision to award a $1 billion repeat contract on Dec. 27 for six additional C-130J Hercules transport aircraft, saying the military has many more pressing purchases to tackle.

“Our top priority is [to] have fighters as soon as possible, but we are surprised by the MoD move on why the government is not signing the $12 billion Medium Multi-Role Combat Aircraft [contract with Dassault of France] and instead is buying transport aircraft for us,” a senior Air Force official said.

An Army official pointed out that the service has no combat-worthy artillery systems and that it was hoping the MoD would finalize a deal for 145 ultra-light howitzers from the US. He added that more than $40 billion in Army procurement is in the pipeline but no significant purchased are being made.

Read the full story at DefenseNews

News Story: HAL's Exclusion Delays Effort To Replace India's Avro Fleet

IAF Avro aircraft to be replaced

By VIVEK RAGHUVANSHI

NEW DELHI — A $3 billion Indian Air Force effort to acquire 56 transport aircraft from a foreign company has run into a roadblock after Minister for Heavy Industries Praful Patel asked why state-owned Hindustan Aeronautics Limited (HAL) was excluded from consideration.

In response, Defence Minister A.K. Antony has asked officials to look into the complaint, which sources say could stall the program.

In May, a tender to procure 56 aircraft to replace the air force’s aging Avro fleet was sent to overseas companies: Casa (EADS) of Spain, Alenia Aeronautica of Italy, Boeing and Lockheed Martin of the United States, Antonov Design Bureau of Ukraine, Ilyushin Design Bureau of Russia and Embraer of Brazil. The tender was not sent to HAL, the state-owned military aircraft manufacturer, and for the first time the tender allowed the selected overseas company to choose an Indian private-sector company as the lead partner for the licensed production of the aircraft. Until now, HAL has been the lead partner for all military aircraft programs.

Read the full story at DefenseNews