Boeing Company, which lost the bid for supplying warplanes worth $10.8 billion to the Indian Air Force, on Friday said it will seek a ?debrief? from the IAF in this regard. Besides Boeing, which had hoped to supply its F/A-18 Super Hornet, fellow US contractor Lockheed Martin too lost the bid to supply the F-16, in the 126-plane tender for Medium Multi-Role Combat Aircraft (MMRCA).
A Boeing statement said: ?We believe we offered the Indian Air Force a fully compliant and best-value multi-role aircraft for the defined mission. We will continue to look for opportunities to help India modernise its armed services and enhance its aerospace industry. Once we have reviewed the details, we will make a decision concerning our possible options, always keeping in mind the impact on the IAF.?
Sweden?s Saab said in a statement that its Gripen fighter had been dropped from consideration. With American fighters out of the scene, the battle narrows down to Typhoon from the EADS Eurofighter consortium (owned by Germany, Spain, UK and Italy) and Rafale from Dassault of France.
If the Eurofighter is selected, the deal could prove lucrative for several British defence companies other than BAE. Ultra Electronics, Meggitt and Cobham all manufacture parts for the Typhoon fighter. The deal could go up to 200 planes or more as ageing MiG aircraft are phased out from service.
The stage is now set for commercial negotiations. Besides, the Union Cabinet needs to clear the purchase after the final defence ministry recommendation. The winner will be the one that offers the lowest tender and meets Indian requirements in terms of offsets and technology transfer.
During last November?s visit to India accompanied by a team of CEOs including Boeing?s Jim McNerney, US President Barack Obama had promoted greater trade between the countries.
The speculation is whether Washington will seek to reverse this decision by crying foul about the selection process. However, ambassador Timothy Roemer said the US is ?respectful of the procurement process? and will continue to ?develop our defense partnership with India,?
After Obama?s visit, French President Nicolas Sarkozy arrived a month later with the CEOs of Dassault and EADS, and Russia?s President Dmitri Medvedev followed to lobby for military sales.
Joel Johnson, an international aerospace trade expert told Reuters in Washington that India may have opted for a European fighter because of a history of US sanctions tied to its nuclear programme and because of technology transfer constraints. ?US contractors may get defeated by politics, but not by quality… India is likely to turn to the US again for unique know-how and products,? he said.
The US companies hope to get explanations that will let them better understand Indian processes and procedures with an eye to future competitions.
Some analysts such as Bryron Callan of Capital Alpha Partners theorised the US government had been unwilling to transfer as much sensitive electronic warfare and radar technology as India had hoped. If so, this would not be as relevant in deals that do not involve fighter planes.