Airbus could miss out as India’s air refueller saga drags on

Airbus Defence could jeopardise its prospects of winning India’s yet-to-be-released bid for six preowned aerial tankers despite having been among the favourites for the A330 Multi Role Tanker Transport (MRTT).

A recently retired senior Indian Air Force official aware of procurement matters told Shephard that a “lack of trust” from Indian officials could become an issue. The lack of trust would be related to a Request for Proposal (RfP) addressed by Airbus for six preowned Air India A321s. Airbus had committed to a lower cost before the RfP was released but the costs significantly escalated after the RfP was released.

The aircraft will be turned into airborne early warning and control systems (AEW&Cs) by the Indian Ministry of Defence’s Centre for Airborne Systems. Shephard has learnt discussions with Airbus have been underway on reducing the cost.

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The six Airbus 321s awaiting “structural modifications, power and endurance adaptations and equipment installation/installation provisions for the AEW&Cs role (India) and certified as per FAR 25 or equivalent” have been parked at the Indian Air Force’s (IAF’s) Hindan Air Force Station in Uttar Pradesh since 2022.

“If Airbus doesn’t fall in line, there will be bad blood,” the official said. “Airbus is peeved since most tenders are going to Indian companies like Tata Group under the self-reliance mantra.”

Shephard’s queries to Airbus India have not yet received a response.

India’s urgent need for air refuellers 

In February, the Defence Acquisition Council gave Acceptance of Necessity – the first step in the procurement process – for six preowned air refuellers. Shephard has learned that ‘feelers’ have been sent out to OEMs to evaluate conversion costs.

“The mandate that the six wide-bodied aircraft be converted in India is foolhardy given volumes are low and it will cost 40–50% extra,” an independent defence consultant who wished to remain anonymous noted. “A new facility and tooling will be required, and the OEM will need to place engineers for nine months.” The consultant added it was a skewed model with no due diligence on what standards were to be achieved. There has also been no mention about avionics or engines.

While Airbus Defence has remained in the running, a dark horse has been Hindustan Aeronautics Ltd (HAL) who could capture the project – reigniting its partnership with Israel Aerospace Industries (IAI) – to convert preowned B-767s to aerial refuellers.

“Geopolitics come into play as India increasingly shows a preference for Israeli defence equipment,” the retired IAF official noted. In 2010, IAI converted a B767 for the Colombian Aerospace Force.

IAI claimed on its website to have more than 40 years of experience in air-to-air refuelling (AAR), converting civil (passenger) aircraft to Multi Mission Tanker Transport (MMTT), “having converted and modified aircraft for more a dozen global customers including the Israeli Air Force”.

Boeing, a likely candidate which has been busy with ongoing deliveries of its KC-46A Pegasus for the US Air Force, confirmed its interest in continuing discussions with the IAF.

Speaking to Shephard, Alain Garcia, vice-president – India business development for Boeing Defense, Space and Security, remarked: “We are currently in discussions with the IAF to assess its tanker requirements and explore how Boeing’s proven tanker capabilities can be of service.”

It has been two decades of rebids as the IAF has awaited the much-needed air-to-air refuellers. More than half of the IAF’s more than 20-year-old IL-78 refuellers have been classified as Aircraft on Ground (AOG) with maintenance issues, especially with refuelling pods compromising mission readiness.

Pakistan on the other hand has four IL-78 refuellers from Ukraine procured 14 years ago and fitted with Russian-designed UPAZ refuelling pods. A US$30 million contract has previously been awarded to Ukraine’s state-owned arms trading agency Ukrspetsexport to upgrade the refuellers by 2025.

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