Tactical, Operational & Strategic Analysis of Markets, Competitors & Industries
There is something I'd like to share on this. Currently, the Mother of all Defence deals is going to happen for then Indian Airforce in the year 2011. To begin with, the contract is for 125 MMRCAs or Medium Multirole Combat Aircraft. The Bidders are Boeing(F-18), Lockheed(F-16), Dassault(Rafael), EADS(Eurofighter Typhoon), Rosboron(MiG-35), and SAAB(Gripen). Each of their levels of engagement with the Indian Government is so strong, that the degree of freebies on offer are just way too much. But thats not the catch.
The catch is, each of these Aerospace giants is trying its level best to woo both the Ministry of Defence as well as the IAF Decision making cadre. Also, the bid is being monitored by the Competition Commission of India.
(This is a body which ensures that nothing Unethical or Illegal happens between competitors in their 'endeavors' to win bids and contracts..Kinda SCIP monitoring done by the Government themselves...)
So for each of the Aerospace biggies, the Bonus would be another fleet of 75 aircrafts that will have a TOT or transfer of Technology deal which will enable them to manufacture aircraft components at much lesser cost in India.
The CI angle is, the bidders have already started collaboration and technological partnership with Indian companies for having an insight and getting to become the lowest bidder keeping the cost offset in mind.
The net worth of the deal is $ 10 Billion plus other overheads.
You might want to take a look at this and subseqently explore.
By the way Richard, r u an ex-USAF yourselves. If yes, you can do more than justice to this topic, rest assured.
The monster arms deals like these are just on another planet, they are unreal. The normal rules do not apply; it is the business of nations, not companies. And because India is of immense strategic importance this century, all the stops are going to be pulled with this one.
Hardware wise, I am sorry to say that the F-18 is not a good aircraft and the IAF should not purchase it; however, the F-16 has proven itself time and again and would make an excellent purchase.
How will the United States conduct “CI”, if you will, in this bidding? At the very least, the Intelligence Community will use its resources to monitor the ethical conduct of competitors. This was a hot issue in the 1990’s.
Partially in agreement. To begin with, the bidding companies are at it by understanding the customer mindset. At the forefront are EADS and Dassault, as they have been gathering a lot of their valuable inputs from the secondary sources. The degree of customisation they intend to deliver to IAF, is so fine-tuned that their Indian Arm is heavily engaged in needs assessment through retired IAF veterans as well as existing pilots.
Irrespective of the strategic depth and importance India has, their current (and almost urgent..!!) need is a fighter capable of delivering on varying extreme weather conditions with ability to engage and prove a major deterrent to PLAAF and PAF. So, its all about the end delivery, whether its the Americans or Europeans, only time will tell.
However, from the recent Aero India 2011, Dassault and EADS might just clinch the deal owing to the degree of CI they have done on the ground. The same did not happen for Boeing or Lockheed. Because what F-16 Lockheed was offering to India, is just a slightly upgraded version of what they have given to Pakistan and Saudi as well. And F/A-18 like you rightly said may have been good on an Aircraft carrier, but for air assault theatres like Ladakh and Thar, its as good as a paper plane, as communicated by an IAF officer who flew it at both geographies. Basically, the CI activity pertaining to what the IAF needs was never really carried out.
Richard, call me ...I got a million of 'em.
Ann Lee Gibson