Boeing starts search for P-8I offset partners in India

By Stephen Trimble

Boeing is now in discussions with Indian industry for offset deals on the newly-minted, $2.1 billion contract to supply at least eight P-8I Poseidon maritime patrol aircraft.

Boeing’s search is focused on finding structural and avionics partners to fulfill the P-8I’s offset requirement reportedly worth 30% of the overall deal’s value.

“We are working with a number of suppliers in India to work out the details. That is ongoing right now,” Bob Feldmann, Boeing VP and programme manager for the P-8I.

The Indian Navy’s selection of the P-8I is the first win for Boeing’s larger campaign to become entrenched in the Indian defence market. Boeing is offering the F/A-18E/F for the Indian Air Force’s multi-role combat aircraft (MRCA) contract.

The P-8I deal could be followed by orders for more as the Indian navy seeks to replace all Tupolev Tu-142s.

“Ultimately, it’s the Indian government’s and Indian navy’s ultimate call as to what their need is, but we expect more P-8s to be added in the future,” Feldmann said. “Certainly, it appears that way to us.”

Indian purchased the first batch of eight P-8I airframes and mission systems as a direct commercial sale. A range of weapons, including sonobuoys, torpedos and Harpoon anti-ship missiles, will be added through the foreign military sales system.

Indian officials have not informed Boeing of any requirements for other weapons, such as the supersonic Brahmos anti-ship missile.

The Indian contract must be cleared for export by the US Department of State and approved by Congress.

Boeing has “export authority for a tremendous amount of this weapon system or we would not be at this point where we are in programme,” Feldmann said. “We are confident that Congressional notification will occur and then we will go forward with the whole programme.”

Boeing is preparing for maiden flight of the P-8A’s first flight test prototype in the third quarter of this year. Both the USN’s first P-8A unit and India’s P-8I are scheduled to enter service in Fiscal 2013.