Israel Aerospace Industries Nears $906 Million Indian Tanker Aircraft Deal
Translated & summarized from NEWSru Israel by baba
Israel Aerospace Industries is nearing a $905.7 million contract to convert six Boeing 767s into aerial refueling tankers for the Indian Air Force. The deal, which includes significant local manufacturing in India, will see deliveries between 2028 and 2030. This acquisition aims to address the Indian Air Force's long-standing need for modern tankers, as their current fleet faces readiness issues. IAI's involvement deepens its strategic partnership with India, building on previous collaborations.
The story in 6 lines · by baba
- Israel Aerospace Industries is close to a $905.7 million deal to convert six Boeing 767s into aerial refueling tankers for India.
- The Indian Air Force plans to use the converted tankers to refuel Rafale and Su-30MKI fighter jets.
- IAI is the sole bidder after Russian and European competitors were disqualified from the tender.
- Deliveries of the converted tankers are expected between 2028 and 2030.
- The deal includes a requirement for at least 30% of the work to be performed in India.
- India's current tanker fleet has faced operational readiness issues, with attempts to acquire new ones dating back to 2006.
Israel Aerospace Industries (IAI) is reportedly close to securing a significant contract worth approximately $905.7 million to convert six used Boeing 767 passenger jets into aerial refueling tankers for the Indian Air Force. The deal mandates that at least 30% of the work be performed in India, with state-owned Hindustan Aeronautics designated as the local partner. IAI emerged as the sole bidder after Russian and European competitors failed to meet the technical and localization requirements of the tender. The Indian Ministry of Defence's Defence Acquisition Council had previously approved the acquisition of six such tankers for around $1.1 billion in late December 2025. Negotiations on the final price have been ongoing since January 1, 2026, with the deal awaiting final approval from the Cabinet Committee on Security. According to Indian media, the contract is nearing signing, with deliveries anticipated between 2028 and 2030. The converted aircraft will be equipped with "hose and drogue" refueling systems, capable of servicing Rafale and Su-30MKI fighter jets, and will also have cargo and passenger transport capabilities. India views this deal as strategically important, especially given the current operational readiness of its existing six Il-78MKI tankers, which has reportedly not exceeded 50% in recent years. Attempts to procure new tankers have been ongoing since 2006 but were previously hampered by cost and technical issues. As an interim measure, the Indian Air Force has been leasing a KC-135 tanker from the U.S. company Metrea. The Indian Air Force's total requirement is estimated at around 12 tankers, with a future tender expected for new aircraft. While the Boeing 767 has a lower payload capacity compared to the Il-78, it offers twice the refueling speed, nearly double the range (approximately 12,000 km), and requires a smaller crew of three instead of six. This development follows IAI's establishment of an Indian subsidiary in New Delhi in March 2024, a joint venture with India's Defence Research and Development Organisation, which employs 50 Indian nationals and handles transactions in rupees. This subsidiary is involved in servicing a medium-range surface-to-air missile system co-developed by IAI and DRDO.
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