Not bad going. UK government and industry officials used the Farnborough air show to talk up the importance of defence exports, and barely one week later India signed up for another 57 Hawk jet trainers. Chalk an early, £700 million ($1 billion) success to BAE Systems and Rolls-Royce, and to Prime Minister David Cameron, who witnessed the licence production signature with Hindustan Aeronautics in Bangalore.

Following on from an earlier 66-aircraft deal, the order marks an early success as the UK looks to keep its place behind the USA as the world's second-ranking arms supplier, with a roughly 20% market share.

UK companies logged international sales worth £7.2 billion in 2009. This was up 70% on the previous year, due partly to lucrative support contracts linked to Saudi Arabia's acquisition of 72 Eurofighter Typhoons.

David Cameron + BAE Hawk
 © BAE Systems
Flying the flag: Cameron does his bit for UK exports

Such aircraft-related deals have been the mainstay of the UK's international defence activities for years, and the sector accounted for 79% of the £93 billion in sales recorded over the 10-year period through 2009.

So what does the new Indian deal say about the UK's defence industrial base? Assembly of the Hawk will shift to India, with BAE to provide "engineering services, raw materials and support". A logical step for a type perhaps nearing the end of its production life, or maybe a fresh start, where reduced manufacturing costs could boost its export prospects beyond the company's previous 18 customer nations.

But with immense funding pressures being felt across the Eurofighter programme's four partner nations, can the UK build on its Typhoon success with Riyadh by helping to bring home further deals in countries like Japan, Oman and South Korea? With "tough choices" at home to potentially kill off Tranche 3B production of the type, it would be unrealistic to expect overseas buyers to commit to a project at risk of being deprived of investment by its European creators.

The UK's approach appears to be sending the right message, for now, with its industrial players getting high-profile support from the nation's top politicians. But it should tread carefully, or else risk going to the extremes of President Nicolas Sarkozy of France, who has travelled the world trying to drive through equipment sales, but not always with a successful outcome.

With countries like Brazil, Iraq, Oman and Turkey identified as holding potential for defence and security deals with the UK in 2010-11, Cameron's influence - and globetrotting resolve - could soon be tested.

Source: Flight International

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