Israel Aerospace Industries Nears $900 Million Deal to Supply India with Refueling Aircraft
Translated & summarized from Calcalist by baba
Israel Aerospace Industries is nearing a $900 million deal to convert six Boeing 767s into refueling aircraft for the Indian Air Force, with deliveries by 2030. The agreement includes significant local manufacturing in India and aims to replace aging Russian tankers. This deal strengthens India's air force against regional threats and secures IAI's expertise in aircraft conversion.
The story in 5 lines · by baba
- Israel Aerospace Industries is set to sell six converted Boeing 767 refueling aircraft to India for $900 million.
- The deal includes transferring technical knowledge and performing 30% of conversion work in India.
- IAI's converted aircraft are significantly cheaper than new refueling planes for India.
- The acquisition aims to enhance India's air force against Pakistan and China.
- This contract could secure IAI's aircraft conversion capabilities after challenges in Israel.
Israel Aerospace Industries (IAI) is reportedly close to finalizing a major deal worth approximately $900 million to supply six aerial refueling aircraft to the Indian Air Force. According to Indian media reports, the agreement involves converting six Boeing 767 passenger jets into refueling planes, with deliveries expected by 2030. The deal also stipulates that at least 30% of the conversion work will be carried out in India by local companies, primarily HAL, utilizing technical knowledge transferred from IAI.
IAI emerged as the sole bidder in India's tender for new aerial refueling aircraft, which are intended to replace the country's aging Russian-made tankers. The company's proposal to convert existing passenger planes is significantly more cost-effective for India, with converted aircraft costing 30% to 50% less than new refueling planes.
This move aligns with India's strategic objective to bolster its air force capabilities in response to threats from Pakistan and China. For IAI, securing this contract could enhance its business certainty in aircraft conversion, especially after facing challenges in the Israeli market. In recent years, IAI attempted to secure orders from the Israeli Ministry of Defense and Air Force for similar aircraft, but they opted to purchase KC-46 tankers from Boeing, utilizing U.S. military aid funds. IAI had expressed concerns that this decision would jeopardize its ability to maintain expertise in the field.
The potential deal with India is seen as crucial for IAI to sustain its operations in aircraft conversion for the foreseeable future. IAI has a long-standing and strong relationship with India's defense sector, having previously collaborated with India's Defence Research and Development Organisation (DRDO) on the Barak 8 air defense system. This collaboration has resulted in multi-billion dollar deals over the past decade, including a significant contract in 2017 for air defense systems, as well as sales of Lora missiles and unmanned aerial vehicles.
Mentioned
