BRENDAN SOBIE / SINGAPORE
Boeing's long-running attempt to sell Malaysia 12-18 F/A-18F Super Hornets has again been set back, this time by the departure of prime minister Mahathir Mohamad.
The US company had been confident Mahathir would sign a letter of intent (LoI) to purchase the fighters before he stepped down on 31 October. Industry sources say Boeing had started drafting a contract, hoping the deal would be sealed and booked by year-end. But Mahathir, who is believed to have given a verbal indication to his administration to go forward with the purchase, left the LoI unsigned.
Boeing believes the deal can still be signed as early as the first quarter of 2004. But Malaysian industry sources say the purchase will be delayed by at least several months.
Former deputy prime minister Abdullah Ahmad Badawi has taken over as prime minister, but is unlikely to sign the LoI until after he is formally elected next year.
Poor Malaysia-USA relations have delayed the sale and anti-US remarks by Mahathir prompted the US Senate last week to tie $1.2 million in military aid to Malaysia to a guarantee of religious freedom.
Source: Flight International
