Airbus selected as preferred bidder for aerial refueling tankers to India

PARIS Mon Jan 7, 2013 10:43pm IST

Related Topics

Stocks

   

PARIS (Reuters) - Europe's Airbus EAD.PA said on Monday it had beaten Russian competition to be selected as the preferred bidder to supply six A330 aerial refueling tankers to India.

The award paves the way for exclusive talks between Airbus Military and the Indian government for a deal reportedly valued at around $1.25 billion.

Airbus had won a previous Indian competition that was cancelled in 2010 because of Indian government concerns over the tender's structure and the sales price.

The Airbus A330 MRTT tanker, based on A330 passenger planes, competed for the deal against Russia's Ilyushin Il-78 air-to-air tanker, similar to ones already used by the Indian air force.

"Detailed negotiations will now begin, which it is expected will lead to the award of a final production contract for an envisaged six aircraft in 2013," Airbus Military said in a statement.

However, defence experts say the Indian procurement process can often take longer than this and is subject to surprises.

The Times of India, which first reported the deal, quoted an unnamed source last week as saying India could have bought the Airbus tankers at a lower cost but had lost four or five years due to procurement delays.

The award is a setback for Russia in the lucrative Indian defence market, once a mainstay of Soviet exports, the newspaper reported.

India is the fifth nation to select the Airbus tanker, which also competes on world markets with Boeing (BA.N) 767 tankers.

Britain, Australia, Saudi Arabia and the UAE have also committed to the Airbus A330, but rival Boeing last year won a $35 billion U.S. tanker order - by far the biggest - after a bitter and protracted contest.

(Reporting by Tim Hepher, Cyril Altmeyer; Editing by Christian Plumb)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Power Outage

Power Outage

India may face blackouts as coal shortage cuts power output  Full Article 

Moody's on Inflation

Moody's on Inflation

Persistent inflation hurting India's sovereign ratings - Moody's  Full Article 

Carmichael Project

Carmichael Project

Adani buys Australia coal mine royalty rights from Linc for $145 million  Full Article 

GDP Preview

GDP Preview

Economy likely grew faster in June quarter: Reuters poll.  Full Article 

India-Japan Meet

India-Japan Meet

Modi eyes breakthrough nuclear pact on Japan trip   Full Article 

Monetary Policy

Monetary Policy

BofA says RBI may cut rates by 75-100 bps starting early 2015  Full Article 

Road to IPO

Road to IPO

Mega-IPO to rekindle the 'bromance' behind Alibaba's rise  Full Article 

Automakers Haven

Automakers Haven

Tata, Volkswagen, others agree to invest $1.9 bln in India  Full Article 

Rare Earth Output

Rare Earth Output

India to chip in with 5 pct of global rare earth output  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage