Israel Nears $900 Million Deal to Convert Jets for India
Translated & summarized from i24NEWS French by baba
Israel Aerospace Industries (IAI) is close to a $900 million deal to convert six Boeing 767s into aerial refueling tankers for India. The agreement, expected to be completed by 2030, includes significant work in India and aims to enhance the Indian Air Force's capabilities amid regional tensions. This conversion project offers a cost-effective solution for India and strengthens military cooperation between the two nations.
The story in 5 lines · by baba
- Israel Aerospace Industries (IAI) is nearing a $900 million contract to convert six Boeing 767s into aerial refueling tankers for India.
- The deal aims to bolster India's air force capabilities amid tensions with China and Pakistan.
- At least 30% of the conversion work will be performed in India by Hindustan Aeronautics Limited (HAL).
- The converted aircraft are scheduled for delivery to India by 2030.
- The project aligns with India's "Make in India" policy and offers cost savings over new tankers.
Israel Aerospace Industries (IAI) is nearing a significant contract with India valued at approximately $900 million to convert six Boeing 767 passenger jets into aerial refueling tankers for the Indian Air Force. The deal, reported by the Israeli business newspaper Calcalist, aims to bolster India's operational capabilities amid ongoing tensions with China and Pakistan. If finalized, the agreement would allow India to modernize its in-flight refueling capacity, extending the operational range of its fighter jets. The six converted aircraft are expected to be delivered by 2030.
A key component of the deal involves at least 30% of the work being conducted in India, primarily by the state-owned Hindustan Aeronautics Limited (HAL), facilitated by Israeli technology transfer. This aligns with India's "Make in India" initiative to boost its domestic defense industry. The project has been in development, with specialized media reporting in January 2026 that Indian authorities had given preliminary approval for the acquisition of used Boeing 767s for conversion by IAI. A pricing committee was formed, but final government approval is still pending.
This collaboration builds on a prior understanding, as IAI and HAL signed a memorandum of understanding in April 2022 for converting civilian aircraft into multi-role platforms for refueling and transport. For India, the deal addresses the increasing maintenance complexities of its current fleet of six Russian-made Il-78 tankers. Converting commercial planes offers a more cost-effective solution than purchasing new tankers, potentially saving 30% to 50%.
For Israel's defense industry, the contract would be a major commercial success for IAI, reinforcing its expertise in aircraft conversion. This comes as the Israeli Air Force has opted for American KC-46 tankers instead of locally converted aircraft. The deal is also set to strengthen the military ties between Israel and India, who are already partners in major programs like the Barak 8 air defense system.
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