India to Consider AH-64 Apache Attack Helicopters from Boeing

by: Matthew Potter
January 5, 2011

Category: Boeing, Business Line, Companies, Congress, Countries, Department of Defense, EADS, Events, Federal Budget Process, India, Lockheed Martin, Military Aviation, production program, Proposal, Services | RSS 2.0

The U.S. Government’s Defense Security Cooperation Agency (DSCA) has proposed to the nation of India that they consider purchasing Boeing (BA) AH-64D Apache attack helicopters for their upcoming requirement. The notification to Congress by the DSCA means that the contract is being pursued.

Often this notification is to support an actual deal but in this case the U.S. is hoping that India will choose the AH-64 over its foreign competitors. This is to allow the quickest possible implementation of the contract.

The total package proposed includes twenty-two of the advanced helicopters along with engines, targeting systems, HELLFIRE and STINGER missiles. It also includes support equipment, cannon ammunition as well as training. The estimated value of the contract if all aspects are exercised is about $1.4 billion.

The Indian government has reportedly requested bids from multiple foriegn suppliers for the attack helicopter mission. Potential suppliers other then Boeing would include Eurocopter, Bell and Russia’s MiL or Kamov aircraft.

India in recent years has attempted to broaden their military systems suppliers to include large Western contractors such as Boeing and Lockheed Martin (LMT). In order to do this they have had to make adjustments to their laws governing offsets and the participation of Indian companies in the actual work.

Boeing has sold several P-8I maritime patrol aircraft in the first major deal with a U.S. company in many years.

India is considering buying transports such as the C-17 or C-130 as well as a modern fighter aircraft that has attracted bids from American, European and Russian companies.

As the U.S. and European domestic defense markets decline due to budgetary pressures and the winding down of Afghanistan and Iraq companies will look to the Asian market especially to make up difference. India along with the Middle East are two areas especially coveted for big contracts.

Photo from jensen_chua’s flickr photostream

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