Aerospace Diary

Neelam Mathews Aug 26, 2014 Rome While there are some good tidings coming from the Modi government, I must say the practice being adopted to release an 'unofficial' statement through just a certain segment in the press, is in the steps of the past government. There are no sources quoted and no official sources. This is truly sending wrong signals to our foreign partners we want to do business with and leaving OEMs to clam up and probably writhe in agony. An example is this  Statement issued by Finmeccanica on the AW101 deal  -   "With reference to the many and often contradictory press articles concerning alleged decisions by the Indian MoD relating to existing contracts and future business with Finmeccanica companies, Finmeccanica would like to clarify that at the moment it has not received any official communication from any of the relevant authorities. Thus, Finmeccanica will not make any comments on these press reports."

20 March 2014 - 11:13 by  Neelam Mathews  in New Delhi India has received its first batch of 19  Mi-17V5s  as New Delhi continues to clash with Italy over the  termination of its deal  to purchase  AW101 helicopters . India’s Ministry of Defence has confirmed that the government will file an appeal against a Milan court order rejecting India’s plea ... Subscribe to get the full article and a whole lot more from Shephard Plus

AIN DEFENSE PERSPECTIVE  »  JANUARY 10, 2014 by    NEELAM MATHEWS India chose Dassualt's Rafale for its medium multi-role combat aircraft in 2012. (Photo: Neelam Mathews) January 9, 2014, 8:15 AM With national elections looming in India, speculation is growing that contracts for the long-delayed medium multi-role combat aircraft ( MMRCA ), as well as the multi-role tanker transport ( MRTT ), could soon be signed. India announced  its choice of the Rafale  in January 2012. But negotiations  subsequently stalled  over offsets, the transfer of technology and the role of Hindustan Aeronautics ( HAL ).  Delays in procurement are taking a toll on military force levels as Indian Air Force ( IAF ) squadrons deplete. This has resulted in pressure on the Ministry of Defense to increase the pace for awarding pending contracts. A government code of conduct prevents any contracts being awarded within 45 day...

ROTORHUB 02 January 2014 - 11:12 by  Neelam Mathews  in New Delhi India has terminated the  $750 million agreement  signed with AgustaWestland in 2010 for 12 AW101 VVIP/VIP helicopters  on the grounds of a breach of the pre-contract Integrity Pact.  The termination, which comes into ...,,,,.read more in RotorHub (subscription)

Neelam Mathews Jan 2, 2014 While nothing can ever be confirmed in the world of defense procurement in India till the ink dries on paper, it is becoming increasingly clear that a basic contract will be signed with Dassault Aviation in the next 45 days for the MMRCA. This is simply because the 45 day election morotarium starts on Feb 15, we are being told. HAL will be in the picture as the RFP clearly says, and we are also hearing some large private companies are in the picture for supplying aerostructures. Even as the AgustaWestland deal has been cancelled, a source tells us: “The government wants to ensure Dassault gets the contract so that the deal cannot be questioned by subsequent governments.” We are also hearing internal discussions on the basic contract have been completed by the IAF.

Posted by Neelam Mathews Oct 4, 2013 The AW 101 saga just doesn't go away. The issue is complicated, creating challenges for the IAF and AW.  Air Chief NAK Browne replying to a query by AerospaceDiary today said how spares for the 3 AW 101 VVIP helicopters would last just for a few months. And then what? Nobody knows. Even as trials in Italy continue on the AW deal , Agusta Westland is getting fidgety. While we can't blame them given that more helicopters are ready for delivery and the contract has a provision for bilateral discussions, India is playing the 'wait and see'  game. MoD might have its reasoning,though I can never understand why they do not as a form of sheer courtesy, ever reply to emails or telephone calls. Here's what an Agusta Westland release today, reads- "Following the suspension of the contract to supply AW101 VVIP helicopters to India – a sanction not provided for the under contract – a request was made to India...

Neelam Mathews April 30, 2013 The AgustaWestland issue is bound to stall acquisitions planned in the near future and one hopes it reaches its conclusion- either way. One might have spoken on cue even as the Italian public prosecutor has called today for a quick trial of former chief of Finmeccanica, Giuseppe Orsi, following the completion of the investigation into allegations of bribery to win India's VVIP helicopter deal. A final decision, papers report, is to be made by a judge in a few days on whether there's enough evidence to try those in accused of wrong doing. AgustaWestland was super quick in releasing a statement following the move to trial in Italy today. " Noting the developments in Italy today, AgustaWestland are unable to comment directly on the ongoing investigation, but wish to stress that none of the allegations have yet been tested in court. In the meantime AgustaWestland International Ltd (as the formal “Seller”) has formally sought bilater...

Neelam Mathews April 19, 2013 We're told Augusta Westland AW 101s VVIP helios contract is ‘on hold’. Interestingly, the contract does not have this clause and there is no laid out document that describes the two deadly words! Incidentally, also on hold are ten containers from AW lying in the customs for weeks containing spares, tools, consumables. What is the guarantee that water leakage is not happening already or that the heat may affect solvents etc that might be in the containers? Can there be some sanity to the idiom ‘on hold’ here? Who will pay for this ultimately, one wonders? Not difficult to fathom! A definition on the net describes ‘On Hold’ –“ to stop all activity or communication with someone” and also “to postpone something; to stop the progress of something,” and I can bet a wager there are hundreds more. So while India might consider it to mean ALL its dealings stop in the interim, AW might not. Word has it they are sticking to the schedule for delivery...

AIN DEFENSE PERSPECTIVE  »  FEBRUARY 15, 2013 An order for AW101 helicopters is now the subject of corruption investigations in both India and Italy. February 15, 2013, 8:00 AM The Indian government has begun the process to cancel its contract with AgustaWestland ( AW ) for 12  AW101   VIP  transport helicopters. On February 15, the country’s defense ministry gave  AW  seven days to respond to its its formal “show cause notice” seeking contract cancellation. The move follows the  February 13 arrest in Italy of Giuseppi Orsi , chairman and chief executive of its parent group Finmeccanica (and former  AW  chief executive). The Finmeccanica board last night appointed the group’s  COO  and  CFO  Alessandro Pansa to serve as chief executive and has named senior board member Admiral Guido Venturoni as vice chairman. As of press time, no announcement had been made about the future of ...

Neelam Mathews Dec 27, 2012 The ghost of the adage, ‘You scratch my back, I scratch yours,’ continues to flutter in India’s corridors of power. Is it fact, imagination or  just a strange coincidence that the day the two Italian marines held for the killing of two fishermen off Kerala’s coast were allowed to ‘go home for Christmas’  even as two of the 12 ordered VVIPs AW101s flew to India? Wonder if the day will come when all those on bail are permitted to fly to Bangkok or the US to celebrate Diwali or Eid with their families? Suppose they miss their relatives too. Coming back to this issue, what in the blazes happened to defense minister A.K Antony ensuring the bribery- report that emanated in Italy on the procurement of the 12 helicopters was shared with the Indian government before it accepted delivery of the helicopters? Here at AerospaceDiary, we do feel that the government should put its foot down when OEMs create issues to derail procurements when rejected....