U.S. defense giants Boeing (BA) and Lockheed Martin (LMT) will be aiming to shoot down Russian and European rivals in the war to win the world's biggest fighter jet contest.
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India's air force formally asked companies Friday to submit proposals for 110 fighter jets, currently the globe's largest such order. India seeks 75% single-seat aircraft, with the remainder being twin-seat planes.
The order could be worth at least $15 billion. So says Rahul Bedi, a New Delhi-based analyst at Jane's Information Services, told Bloomberg. Boeing and Lockheed also will be vying against Russia's United Aircraft Corp., which makes MiG fighters, Sweden's SAAB, France's Dassault Aviation and the Eurofighter Typhoon.
The request for information will be open until July. A request for proposals will follow. After evaluating bids and negotiating contracts, the process could take years. The first aircraft must be delivered within three years of signing the contract.
In a bid to curry favor, Lockheed previously said it would move all F-16 production to India if it wins the contest, as local production is a key requirement to the deal. Boeing has also offered to set up an F/A-18 Super Hornet manufacturing facility in the country.
Meanwhile, the Indian navy plans to award a separate $10 billion contract for 57 fighters. Boeing's Super Hornet is seen as a front-runner in that contest.
Boeing stock sank 3.1% at 326.12 on the stock market today, after President Trump threatened to double down on tariffs against China, a major customer for Boeing's commercial jets. Lockheed Martin fell 3.4%, back below its 50-day average.
Late Change Opens Door To Boeing
India's air force and navy require up to 400 single- and double-engine combat aircraft, according to the government. But the procurement process has seen some twists and turns. In 2007, New Dehli awarded an $11 billion contract to Dassault Aviation for 126 Rafale jets.
However, the government scrapped the deal in 2015 after clashes over price and quality guarantees. Instead, it bought 36 jets separately as a stopgap measure before reopening a new competition.
In February, India reportedly asked its air force if its fighter requirements could be expanded to include twin-engine jets after Lockheed's F-16s and Saab's Gripen single-engine offerings were the only jets to meet prior requirements. That opened the door to Boeing's twin-engine Super Hornet and Russia's MiG.
India is looking for day-and-night capable, all-weather combat aircraft that will fulfill a number of key roles. These include providing air superiority and air defense, as well as carrying out air-to-surface, reconnaissance and maritime operations.
The country wants new fighter jets amid rising threats from neighbors Pakistan and China. The mainstay of its current fleet is Soviet-era MiG fighters. But India is phasing out those aging aircraft.
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