Efforts by BAE Systems to clinch a long-awaited deal with India for the sale of 66 Hawk trainers are focused on pricing after the UK company agreed to meet customer demands that all US content be removed from the aircraft.
India insisted that the avionics suite of the Hawk be modified in the face of a US defence sales embargo imposed after the country launched its nuclear test programme.
"Price is the only issue," says Indian defence minister George Fernandes. "There is a gap between what our price negotiating team has suggested and what the British have offered." He adds, however, that he is optimistic a deal can be concluded during the next few weeks.
BAE Hawk head of sales Dave Potter says: "We have to come together on price, and we'll do it." The aircraft, of which 42 are expected to be assembled locally by Hindustan Aeronautics, are required to meet India's long-standing Advanced Jet Trainer (AJT) requirement.
Embraer meanwhile was on hand at Aero India 2001 in a last minute attempt to promote its claim that it could supply a similar number of its AMX-trainers at a price 30% below that offered by BAE, though the Brazilian company has not been invited to make proposals.
"We are here to show them what we have, but we don't want to interfere with the process," says Embraer defence market strategy manager Nilton Goncalves.
Potter declines to comment on specific changes that have been made to the Hawk's avionics suite, saying only that the affected systems include "avionics, navigation and radio equipment, which has been removed and replaced by alternatives". It is understood that some of the new equipment will be sourced from Sagem in France, while other components will be supplied by Indian industry.
The primary avionics, integrated by Smiths Industries of the UK, remains unaffected by the embargo. Thales sources say, however, that the French company is intending to offer its own multi-function displays (MFD) - being produced locally to equip India's Sukhoi Su-30MKIfighters - in place of the current Smiths units. South Africa opted for Thales MFDs for its Hawk purchase.
Source: Flight International
