NEW DELHI — Airbus has been selected as the preferred vendor over Russia’s Ilyushin to supply six aerial tankers for the Indian Air Force in a $1 billion tender, according to Indian Defence Ministry officials.
After the commercial bids were opened earlier this month, the base price of the Russian Il-78 tanker was quoted as lower than that of the A330, but when factoring in maintenance and fuel costs,
the Airbus was the better value, said a Defence Ministry official.
The official refused to provide the exact quotes of the bids, and said the Russian government-owned company had not yet been officially informed about the decision.
Russian diplomats confirmed they had not been informed of the Airbus selection.
Boeing withdrew from the competition in 2010, leaving only the A330 and Il-78 in competition.
The tender in 2010 also was sent to EADS, Lockheed Martin and Antonov of Ukraine. Antonov did not qualify, and Lockheed and Boeing did not participate.
The Indian Air Force is using six Il-78 midair refuelers bought from Uzbekistan and plans to buy 12 additional tankers, which includes the six from Airbus.
Defence Ministry sources said it is not yet decided if a fresh tender will be opened to buy the remaining six or if a repeat order will be given to the winner to the current competition.
The current tender is itself a rebid of a 2006 tender in which the A330 finished behind the Il-78 tanker,
but the Indian Air Force preferred the European tanker.
When the matter was sent to India’s Finance Ministry, it said the lowest bidder should be the winner. The controversy led to the cancellation of the tender.
Defence Minister A.K. Antony wrote the Indian Parliament on Dec. 14, 2009, that the Finance Ministry had expressed reservations about the competition.
“The procurement proposal had been progressed in accordance with the Defence Procurement Procedure — 2006 and thereafter referred to the Ministry of Finance who has expressed certain reservations relating to the competitiveness of the bids and the reasonableness of the price,” Antony wrote.
The Indian Air Force plans to deploy the tankers at Panagarh Air Base in the eastern state of West Bengal to help increase the range of its Su-30MKI fighter jets, which would enable the Indian aircraft to penetrate deeply into China,
an Air Force official said.
In addition to lower fuel costs, the Airbus tanker is optimized for high-altitude cruise and fitted with advance avionics, the IAF official said.
Last edited by Stratofreighter on 07 Nov 2012, 22:15, edited 1 time in total.
Losing further ground: Airbus pips IL-78MKI in Indian tanker tender
November 7, 2012
Russian companies continue to get outbid by American and European competitors in tenders for aircraft supplies to India.
The Russian Il-78MKI lost the tender for the supply of six aerial tankers worth $1 billion to India,
which selected the European Airbus A330 as the preferred vendor,
citing its lower operational costs.
This is not the first Indian tender to be lost by Russian manufacturers in recent months.
The base price of the Russian Il-78 tanker was quoted as lower than that of the A330, but when factoring in maintenance and fuel costs, the A330 seemed to have better value, an Indian Ministry of Defence official said.
After America’s Boeing withdrew from the competition in 2010, it was a face-off between the Il-78 and the A330. EADS, Lockheed Martin and Ukrainian aircraft builder Antonov could have competed for the tender, but Antonov did not qualify and Lockheed Martin chose not to participate.
Tests of the Il-78MKI and A330MRTT were completed by India in early 2012. The country’s military has repeatedly complained about inconsistent deliveries of spare parts for the Il-78MKI.
The Indian Air Force is using six Il-78 mid-air refuelling systems and plans to buy 12 additional tankers, which includes the six from Airbus.
Sources at the Indian Ministry of Defence said it has not yet been decided whether a fresh tender will be opened for the remaining six tankers or whether a repeat order will be given to Airbus.
The current tender is itself a rebid of a 2009 tender, in which the Il-78 competed against the A330. The European tanker was preferred then as well, but the country’s Finance Ministry blocked the deal, saying the A330 was too expensive.
The new A330 tankers will be deployed in Panagarh. In addition to lower fuel costs, the Airbus tanker is optimised for high-altitude flight and is equipped with advanced digital avionics.
The Il-78 is used in many countries, and there have been no complaints so far.
“We are currently observing a growing demand for this airplane. Russia will be able to supply this machine to customers who bought our Sukhoi airplanes. Also, Russia may start supplying upgrades of its Il-476 refuelling system,”.
Its technical characteristics were not the main reason why the Indian military gave up on the Il-78, says Vadim Kozyulin, director of the Conventional Arms Programme at the Centre for Policy Studies in Russia.
“Military and technical cooperation between Russia and India is going through a difficult phase,” he explains. “India’s political elite currently favours closer ties with the United States and the EU.”
“My estimate is that the Il-78 must be about 30 percent cheaper than the A330.
The maintenance costs are roughly the same.
When it comes to fuel costs, Russian planes are indeed less economical, but this has never been a problem for foreign Air Forces,” Kozyulin told Vzglyad.
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