Posted on 12/06/2007 8:10:39 PM PST by sukhoi-30mki
U.S. fighter bids for India hit tech-transfer snag
Thu Dec 6, 2007 2:06pm EST
By Jim Wolf
WASHINGTON (Reuters) - A split in the Pentagon over how much cutting-edge technology to share with India is complicating bids by Lockheed Martin Corp (LMT.N: Quote, Profile, Research) and Boeing Co (BA.N: Quote, Profile, Research) for a potential $10 billion fighter jet contract.
At issue, among other things, is advanced radar know-how India wants as part of any deal for the 126 new fighter jets it plans to buy from one of six global aerospace powerhouses, say current and former Pentagon officials.
Detailed offers from all bidders are due to be submitted to the Indian defense ministry by March 3.
The contenders come from Russia, Europe and the United States. If the deal goes to Americans, it would crown a post-Cold War trend toward tighter U.S.-Indian security ties, a potential counterweight to China's growing might.
Lockheed Martin and Boeing -- the Pentagon's No. 1 and No. 2 suppliers by sales -- were invited by India for the first time to bid to supply fighters.
Lockheed Martin is proposing a version of its widely sold F-16 Fighting Falcon but has not made public any detail of which radar it will offer.
Boeing has said it is pursuing U.S. government approval to sell its F/A-18 Super Hornet "Block 2" strike attack aircraft, used by the U.S. Navy and Australia. It is equipped with what Boeing has called "ground-breaking" Raytheon Co (RTN.N: Quote, Profile, Research) APG-79 Active Electronically Scanned Array (AESA) radar.
Also in the race: Russia's MiG 35, France's Dassault Rafale, Sweden's Saab AB (SAABb.ST: Quote, Profile, Research) JAS-39 Gripen and the Eurofighter Typhoon, made by a consortium of British, German, Italian and Spanish companies.
"There's advocates and non-advocates" of meeting India's hopes for maximum radar technology-transfer and co-production, said a senior U.S. Air Force official, who declined to be named.
Asked about deliberations on licensing the so-called AESA radars for export to India, U.S. Navy Secretary Donald Winter told the Reuters Aerospace and Defense Summit: "I know that that's under consideration."
"There's a very well detailed process that is followed by the department (of defense) that I'm not expert on, and I would defer to those who are," Winter said on Wednesday.
The trade-offs involved in U.S. reviews are complex. They include business pressure to make Lockheed and Boeing as competitive as possible while protecting a key U.S. war fighting technology.
"The Indians want as much co-production and as much technology transfer as they can get," said retired Air Force Lt. Gen. Jeffrey Kohler, who stepped down in August as the Pentagon's top arms-sale official. "The U.S. government has to decide how far it will go toward meeting India's requests."
"I think this a very critical decision that needs the attention of top government officials," said Kohler, now an unpaid advisor to the private U.S.-India Business Council.
Ron Somers, president of the council that represents 275 of the biggest U.S. companies investing in India, referred to India's fighter market as "a tremendous opportunity for U.S. companies that should not be missed."
"We hope the U.S. government will get its act together," Somers said by telephone. "Time is of the essence if we hope to compete with foreign companies for this hugely important deal."
Lockheed Martin and Boeing declined to comment on the U.S. government's delay in approving their India packages, as did the Indian embassy in Washington.
Bob Gower, vice president of Boeing's F/A-18 program, said Boeing was confident the U.S. government ultimately will clear release of the APG-79 radar.
"The F/A-18 has an advantage in that we are the only airplane in the competition with a fielded production AESA radar," Gower said in a written response last month to questions from Reuters. "I like our competitive position on the AESA radar."
AESA presents many military advantages, boosting pilots awareness of any threats, according to William Ostrove, a radar market analyst at Forecast International, an aerospace consultancy in Newton, Connecticut.
"The United States has the most advanced AESA technology in the world," he said. "No other country currently has an AESA radar in production."
The United States already has sent AESA technology to Singapore and the United Arab Emirates, but they did not demand as much access to the underlying know-how as India has done, Ostrove said.
Washington might resolve its AESA-related dilemma by clearing a "dumbed down" version, he said. Substituting a less powerful processor, for instance, would make it less capable than one now flown by U.S. Navy F/A-18E/F Super Hornet pilots.
"This would allow the Indians to build the radar themselves while preventing the most advanced American technology from leaving the country," Ostrove said.
As part of a strategic initiative designed to cement new security ties, President Bush in March 2005 gave Boeing and Lockheed the nod to sell advanced fighters to India.
(For summit blog: summitnotebook.reuters.com/)
(Editing by Tim Dobbyn)
In this U.S. Army handout photograph, which was released on August 24, 2004, a U.S. Army F-16C Fighting Falcon launches flares during a combat mission over Iraq. A split in the Pentagon over how much cutting-edge technology to share with India is complicating bids by Lockheed Martin Corp and Boeing Co for a potential $10 billion fighter jet contract.
REUTERS/Ho
As far as I know my proposed deal is dead.
I dont know where in the pipeline it died. I’m just a working stiff.
Reuters is really sloppy; their caption for the photograph states that it is an Army F-16. Reuters needs to hock something and buy a clue.
I lobbied the Company over a year ago, and pointed out that the Gov was increasing transfer of defense technology.
it should die. WHere in the rulebook does it say give away the technology store for a couple of bucks? Do the corporate whores pushing this transfer even care?
Well apparently we need to sell them the radar in order to try to develop a “counterweight” to China. Important as the India-U.S. alliance is, I just love vague references like that. I mean, heck, if we need to form a “potential counterweight” with someone else to “China’s growing might,” it means we’re already weaker. I can only imagine how China will bestride the earth in another decade with power unmatched in human history.
GWB and Nick Burns have been working tirelessly to strengthen ties with India to thwart the rise of China.
The Gov will make the ultimate call on technology transfer.
India is the largest rising democracy in the area.
Yes there are pitfalls.
I would not ignore India
Oh, and part of the process is determining if you need to scale back the product capabilities.
India is a HUGE market and potential allie. a far better partner than China or Pakistan
From a 2003 Rediff Special by Josy Joseph in New Delhi.
"Key Indians interviewed in the report said, 'America's reluctance to engage in focused technology transfer is a deal killer in the effort to construct an enduring strategic relationship.' Indians placed technology transfer as the 'touchstone' of the new found strategic relationship and 'everything revolves around a strong US commitment to share its technologies so that India can advance.'"
This article is four years old. I wonder if it is still true.
I would assume that all export products(by any country) are always downgraded versions unlike the ‘full’ versions used by the primary customers.So I don’t think India or anyone can have much say on that issue.That being said that if the level of technology being transferred by the Europeans is of a higher degree,then the US planes are out.
Thats the game
It is true.& not just for India,any country with some sort of industrial capability which signs a defence deal of a few billion dollars or more now demands some form of transfer of technology as well as industrial offsets(usually related).
Even the UAE put conditions before it signed on for F-16s a few years ago-
http://www.f-16.net/f-16_users_article22.html
http://www.codeonemagazine.com/archives/2003/articles/oct_03/uae/
Well maybe,but it’s certainly confusing.The Europeans have newer aircraft,but those are still ‘works in progress’ with their AESA radars,full multi-role capability all still incomplete.So the costs will be higher for those.Besides they can be cranky suppliers as well.
The Russian Mig-35 offers little other than 3D thrust vectoring & the given the current state of Indo-Russian ties,it may not make the cut.
The US jets are the most established players in the fray & if the Indo-US Nuke deal gets passed without much trouble,will still stand a chance.
And with the dollar down against the euro. EADS dont look so good
Support is a big deal. we provide the best.
Russia is good at this as well, or has been in the past
Well,that’s a crucial fact if any decision were to be taken anytime soon-but it will take atleast 2 or 3 years before the Indian government signs on for one(or maybe even 2) aircraft.
Its all money AND security
There are numerous delays in various Indo-Russian procurements,so the standard of Russian support to India’s military is not awe-inspiring.Besides,if the Russian aircraft gets the deal,it would be the 3rd major Russian aircraft to get selected by the Indian Airforce-the others being the SU-30(in 1996) & the proposed 5th generation Sukhoi fighter.This is in addition to existing Mig family members.Too many eggs in a Russian basket.
US support is good,but what if India decides to light off a nuke or attack terrorist camps in Pakistan????So as I said,no easy choices over here.The French have a pretty good track record in India-so do the Brits.
Amazing yall still like the Brits, though they have been even handed.
India has it own interests and I bear no grudge there.
I see The west as her best bet at power and stability.
China hasnt been a good neighbor
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