Israel Aerospace Industries Nears $900 Million Deal for Indian Air Force Tanker Jets

Israel Aerospace Industries (IAI) is reportedly close to securing a significant defense contract worth approximately $905.7 million to convert six Boeing 767 passenger aircraft into aerial refueling tankers for the Indian Air Force. According to Indian media and defense news outlets, IAI is the sole bidder to pass the qualification stage in a tender that also saw participation from Russian and European companies. If the Israeli bid is selected, IAI will be responsible for the conversion, with at least 30% of the work to be performed in India. Hindustan Aeronautics Limited (HAL) is expected to be the local partner for the project. This potential deal aligns with India's "Make in India" initiative, aimed at boosting domestic manufacturing and reducing import reliance, and reflects a growing Israeli presence in India's defense sector. IAI established an Indian subsidiary, Indian Skies Aviation Services (ASI), in New Delhi in March 2024, in collaboration with India's Defence Research and Development Organisation (DRDO). ASI employs about 50 people, 97% of whom are Indian nationals, and is involved in activities related to the Medium Range Surface-to-Air Missile (MRSAM) system, co-developed by IAI and DRDO. The potential acquisition is strategically important for India, whose air force currently relies on six Russian Ilyushin Il-78 tankers, which are reportedly insufficient for its operational needs. Previous attempts by India to acquire new tankers faced delays due to cost and technical issues, leading to the consideration of converting passenger planes and leasing tankers as a temporary solution. The Boeing 767 offers advantages over the Il-78, including a longer range and a higher refueling rate, despite a slightly lower fuel capacity.