Posted on 07/05/2009 9:08:14 PM PDT by sukhoi-30mki
US pressures IAI to drop bid on fighter jets to India
By YAAKOV KATZ
Under pressure from the Pentagon, Israel Aerospace Industries (IAI) has been forced to back out of a joint partnership with a Swedish aerospace company to compete in a multi-billion dollar tender to sell new multi-role fighter jets to the Indian Air Force.
The deal, estimated at a whopping $12 billion for over 120 new aircraft, is being fought over by Lockheed Martin's F-16, Boeing's F-18/Hornet, Russia's MiG-35 and BAE's Eurofighter. IAI was asked by Saab, manufacturer of the Gripen fighter jet, to jointly develop an advanced model which would compete for the deal.
The Defense Ministry ordered IAI to back out of the deal after the Pentagon expressed concern that American technology, used by Israel, would be integrated into the Gripen offered to the Indians.
"The stated concern was that western technology in Israeli hands would make its way to the Indians," one Israeli official said.
What was strange about the American request was that Boeing and Lockheed Martin - the two largest US defense contractors - are also competing for the Indian deal. For this reason, Israeli officials said it was more likely that the Americans were concerned that if IAI competed for the deal with Saab, it would force the American companies to lower their prices.
A multi-role fighter, the Gripen is in service in Sweden, the Czech Republic, Hungary and South Africa. IAI was supposed to provide the electronic systems - radar, communications, electronic-warfare - for the plane.
This is not the first time that the Defense Ministry forced a local company out of a deal due to concerns that competition with American companies would cause friction with the United States.
Last summer, the Defense Ministry ordered Israel Military Industries (IMI) to back down from submitting a bid for a half-a-billion dollar deal to develop and manufacture a new tank for the Turkish Armed Forces.
At the time, Turkey had informed the Defense Ministry of its interest in developing a new tank and asked if IMI would want to submit a bid. SIBAT - the Defense Ministry's Foreign Defense Assistance and Defense Export Organization - decided not to submit an Israeli offer so not to compete with the Americans.
The proposed Gripen-IN armed with Israeli weapons
Someone explain to me why the US would want to stand in the way. I thought India and Israel were both allies of the US. So what gives?
The Indian MRCA contract (between 120-200 jets) is being seen as a make or break contract for almost all the competitors involved, including the F-16 and the Super Hornet. So why allow someone else to take the cake, when you stand a chance?? The Gripen-NG as it is has considerable American tech, including the engine.
The US wants India to buy American planes, not Israeli-Swedish planes. It's very simple. There's no national security question here at all.
Nothing complicated in this.
We want the Indians, who are rapidly becoming a worthy ally under Dr. Singh (their Prime Minister) to buy our jets.
It is well known in military aviation circles that independent French, Swedish and Russian (Mig) military companies are on the brink of going under.
At the end of this decade only China, Russia (Sukhoi), USA, India and the Euro Alliance (Eurofighter) will be capable of making advanced Fighters of which only the USA is seen capable of making the current fifth generation fighters and its next future equivalent.
If youd like to be on or off, please FR mail me.
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The US can be utterly ruthless in commerce, free markets, level playing field and all that rot be damned.
The problem is, as it’s always been, the propensity of the US Congress to interfere with resupply - maintenance parts and enhancements or even stopping shipments of items already paid for.
...estimated at a whopping $12 billion for over 120 new aircraft, is being fought over by Lockheed Martin's F-16, Boeing's F-18/Hornet, Russia's MiG-35 and BAE's Eurofighter. IAI was asked by Saab, manufacturer of the Gripen fighter jet, to jointly develop an advanced model which would compete for the deal. The Defense Ministry ordered IAI to back out of the deal after the Pentagon expressed concern that American technology, used by Israel, would be integrated into the Gripen offered to the Indians.Oh yeah, that's the real reason, you bet. ;') When India goes with the MiG, everyone's gonna be oh-so happy here in the states that Israel and Sweden didn't get a little business.
Is the Rafale ‘out’ again? It was not listed as a fompetitor in the article. I wonder what the latest front runner is - still the SuperBug, or have they come to their senses and opted for one of the EuroCanards (where at least there are no strings attached, nor potential parts shut-offs should you beep wheb the US State department would have preferred you bop)
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