Airshow: Airbus keen to sell army planes to India

BANGALORE Thu Feb 7, 2013 7:21pm IST

An A380 aircraft is seen through a window with an Airbus logo during the EADS / Airbus 'New Year Press Conference' in Hamburg January 17, 2012. REUTERS/Morris Mac Matzen/Files

An A380 aircraft is seen through a window with an Airbus logo during the EADS / Airbus 'New Year Press Conference' in Hamburg January 17, 2012.

Credit: Reuters/Morris Mac Matzen/Files

Stocks

   

BANGALORE (Reuters) - Europe's Airbus EAD.PA wants to sell its C295 military transport aircraft to India, an Airbus Military executive said on Thursday, adding that the company was awaiting a request for proposals from the government.

"We are very keen to see the RFP so we can get our proposal in there," said Kieran Daly, press manager for Airbus Military, at the Aero India air show in Bangalore.

The C-295 is a twin-engined Spanish-built tactical transport aircraft designed to carry 71 people or nine tonnes of cargo.

It competes in a growing market for aircraft designed for rough air strips with Alenia C-27J, made by a unit of Italy's Finmeccanica (SIFI.MI).

Airbus is also optimistic about finalising a contract this year to sell Airbus aerial refueling tankers to India, Daly told Reuters.

Airbus said last month it had beaten Russian competition to be selected as the preferred bidder to supply six A330 aerial refueling tankers to India, paving the way for exclusive talks between Airbus Military and the Indian government for a deal reportedly valued at around $1.25 billion.

"Hopefully the final contract negotiations will begin in the next few weeks. We are optimistic we will have a contract within the year," Daly said.

India has been the world's biggest arms importer in recent years, and plans to spend around $100 billion over the next 10 years in upgrading its mostly Soviet-era military hardware.

Daly also said Airbus could deliver its long-delayed A400M military airlifter to its first customer, France, in May.

Asked when the handover would take place, he said, "Probably May (or) could be June. We had said earlier it will be in the second quarter."

Developed at a cost of 20 billion euros, Europe's military transport and heavy cargo plane has been hit by a five-year delay and cost overruns that led to a multinational bailout.

Airbus, a unit of European aerospace group EADS EAD.PA, has begun low-level discussions aimed at promoting the aircraft to India and hopes eventually to sell it to the United States.

"We think the A400M will be of interest to the Indian Air Force in due course," Daly said.

"We are very confident the U.S. will buy the aircraft one way or another. But it could take years, not months. It will take a really long time."

Airbus lost a $35 billion contest in 2011 to supply aerial tankers to the U.S. Air Force after a major duel with Boeing.

Analysts say the company is betting that recently launched plans to open a commercial jet assembly plant in Alabama will create both the industrial base and political support needed to support sales of aircraft to the U.S. military in the future.

(Writing by Aradhana Aravindan; Editing by Tony Munroe, Tim Hepher)

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

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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