DoD Buzz: India Tackles $10B Fighter

[unhappycamper]

By Manu Sood Tuesday, July 6th, 2010 11:01 am
Posted in Air, International, Rumors

Our colleague Manu Sood, editor of the Indian defense website 8ak​.in covers the impending $10 billion deal for the Indian Air Force’s new multi-role aircraft.

While it’s too soon to predict a likely winner for India’s huge competition for 126 Medium Multi-Role Combat Aircraft (MMRCA), the first indicators should be out as early as the next week when the technical evaluation committee’s report comes out.

Reports state that this deal for 126 fighters will cost $10 billion, but there exist huge price variances between the offered fighters of varying capability. And this figure is a lifecycle cost – not an acquisition cost — so it is not clear if the number of fighters is fixed or whether the budget figure is. Half the fighters would not qualify even before going in to trials depending on the answer.

This is the first indication of the general confusion in the competition. The second is why a single engine aircraft with a 1970’s airframe is in the same competition as the most modern and expensive twin engine heavy hitter. The Indian Ministry of Defense has drafted the tender so broadly that most fighters would qualify. But this lackadaisical attitude will cost competitors hundreds of millions of dollars when they compete but fail. One competitor told 8ak that the competition could cost each bidder an average of $180 million given costs such as each bomb drop in live weapons’ trials could cost up to US$1 million.

~snip~

It is 8ak’s expectation that the final selection will be purely politics and will not be based on cost. Russia may have been eased out and US is in danger that its restrictive policies may become unpalatable in India. Eurofighter and Rafale are great platforms. If cost was not an issue, then these would win. But cost and numbers are an issue so, if Saab pushes hard enough, you never know. And that is the current prediction. You never know.



unhappycamper comment: Notice what's not mentioned in this article? The $243 million dollar F-35: