Boeing bags $5.8bn deal with Air Force
US aviation giant Boeing is set to be one of the biggest beneficiaries of Indian orders in the defence and civil aviation sectors, bagging deals worth billions of dollars much to the delight of the United States. This is expected to lead to creation of thousands of jobs in the US, something that will be music to the ears of President Barack Obama.
But these come even as the US is yet to take any concrete action on Indian fears of misuse of billions of dollars of US military aid to Pakistan as well as the American reluctance to transfer certain communication equipment to India unless India signs certain strategic agreements with it such as the Communications and Information Security Memorandum of Agreement (CISMOA).
In the defence sector, a mega deal is in the final stages for acquisition of 10 Boeing C-17 Globemaster III advanced airlifter aircraft for the Indian Air Force at a staggering $5.8 billion (about `25,000 crores). The C-17s are likely to be procured through the US foreign military sales (FMS) route. The IAF currently has in its transport fleet, Russian-made AN-32 and IL-76 airlifters. Boeing is positioning the C-17 as a tactical and strategic airlifter that can carry large combat equipment and troops across international distances and deliver them directly to small airfields anywhere in the world where it can take off and land in 3,000 feet or less.
Boeing is also set to bag another $1 billion deal for sale of four more long-range maritime reconnaissance and anti-submarine warfare (LRNRAW) aircraft for the Indian Navy. Two years ago, Boeing had inked a $ 2 billion deal for sale of eight of these aircraft.
Even in the civil aviation sector, Boeing will rake in the big orders.
Low cosst carrier SpiceJet recently placed an order of 30 aircraft with Boeing at an estimated cost of $2.5 billion. SpiceJet is looking to double its fleet strength from the current 22 aircraft by the end of 2013.
Even cash-strapped state-owned carrier Air India is considering acquisition of the new Boeing 747-8 aircraft for the officials visits abroad.
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