(Updates with the India declined comment to the second paragraph, the sixth paragraph analysts comment).
April 29 (Bloomberg)--the India of the Defence Ministry opted for European in U.S. aviation for the order of the world more large fighter aircraft in 15 years, the lobbying efforts by the President Barack Obama.The U.S. of snubbing is "deeply disappointed" after the India said this week that Boeing Co. and Lockheed Martin Corp. "does". "were not selected for purchases" for the warplane, the US Embassy in New Delhi said in a statement, quoting Ambassador Timothy Roemer. Ministry of defence the India will not comment on the reports, he screened the aircraft from the France of Dassault Aviation SA and the European Aeronautic, defence & space Co., said the spokesman of the Sitanshu Kar Department by phone today.The contest of the order of the India can be even more so with the approval by the cabinet of Prime Minister Manmohan Singh required following the final recommendation of the Ministry of defence. "Obama has sought to strengthen ties with the India, second-fast world economic growth major, to stimulate exports and growth in employment than the United States struggles to bring down high unemployment rates."A remaining uncertainty is the determinative nature of the strategic partnership U.S. - Indian could outweigh the purely technical and operational considerations "which gave an advantage to European companies, said Kapil Kak, Indian air former vice Marshal who is the Director of the Centre for air power studies"a group of New Delhi.AircraftLockheed more aged, based in the suburbs of Washington in Bethesda, Maryland, has offered his F-16 fighter aircraft, while Chicago-based Boeing is intended to sell the F/A-18 Super Hornet. These aircraft were first designed in the years 1970 and the Lockheed F-22 advanced fighter and the most expensive in the U.S. arsenal, was not offered for sale.Preference of the Department for the latest European models "is not a political choice," said V.K. Kapoor, a former lieutenant-general who oversees the India military markets. "It was a technical assessment by the book that the American F - 16 and F/A-18 in spite of their updates are not the future generation aircraft," Kapoor said by telephone. "They can stay current for another 5 or 10 years, but this agreement will determine the operational capability of the air force for the next 30 years."Trade NegotiationsThe Ministry of defence will open discussions with Dassault and EADS "to see how to obtain the best overall agreement of enterprises," Kak said, quoting officials of the air force. "We can expect that will begin in June and take eight or nine months," he said.Lockheed closed a 0.1% to $79.06 in New York yesterday, when the Standard & Poor 500 advanced by 0.4% of Stock index. Boeing acquired 3.2 78.55% $ after Citigroup Inc. raised its estimate of price on society.The United States is "respectful of the procurement process" and will continue to "develop our partnership of defence with the India", Roemer said in the statement.Boeing said in a statement, he was disappointed and will request a debriefing of the Indian air force on the decision.Saab AB the Sweden said that its Gripen fighter was abandoned from consideration to the planned purchase of 126 jets, an agreement that said Kak can extend to 200 or more reason for attrition among the fleet of MiG - 21 Indian air force, which some have been built in the years 1970.Indian spending spokesman for State arms export Russia, Rosoboronexport, Vyacheslav Davidenko, declined in a telephone interview to comment on the exclusion declared of State-controlled OAO United Aircraft Corp.Foreign Governments and businesses in difficulty to recover from the global recession are competing to sell the $120 billion of dollars of weapons that the India can buy of the year next to 2017 according to an estimate of last year by the Confederation of Indian industry and Deloitte Touche Tohmatsu India Pvt.India has tripled its defence budget to 32 billion of this year, the 10th world these past ten years, they are trying to counter a quadrupling of spending in the same period by neighbors China.Obama led a delegation of Heads of business, including Jim McNerney of Boeing, during a visit to India of November, where the President has urged increased trade between the two countries that he said will support tens of thousands of American jobs. French President Nicolas Sarkozy arrived a month later with the CEO of Dassault and EADS, and President Dmitri Medvedev the Russia to exert pressure for military sales.The short ListIndia of the Defence Ministry issued letters to EADS and Dassault asking them to extend the validity of their offers for the contract of combat aircraft, the Press Trust of India reported, citing company sourcesthat he did not identify. Site Web military affairs based in New Delhi Stratpost said that the letters were published on April 27, "effectively making up the short list" for the purchase. "" We have seen indications for almost two months now that the Indian air force seems inclined to shortlist the Eurofighter and the Rafale, "respectively built by EADS and Dassault, said Kak. The India air force can operate about 30 of its squadrons of 40 air desired due to the aging of its MiG-21 and Dassault Mirage of the years 2000, he said.Twenty-one air force MiG has crashed between 2007 and 2010, Indian Defence Minister A.K. Antony said Parliament last year.Buy weapons of the India has been slowed by the sensibilities of the officials on the corruption scandals in previous purchases, a who helped defeat in the 1989 election the Party of the Congress of the drive Singh, say analysts as Rahul Roy-Chaudhury, researcher for South Asia at the International Institute for strategic studies in London.Since years 1980aucun Indian Government has made a purchase of arm of the invitation to tender opened a value as much as $ 100 million, or approximately 1% of the size of deal of hunting, Roy-Chaudhury and other analysts say. "I have been personally assured levels highest Indian Government that the acquisition of this machine has been and will be transparent and fair,"said yesterday Roemer. His statement was released by the Embassy of the United States hours after he announced that he has offered his resignation for "personal, professional and family reasons".-With the help of Gopal Ratnam Washington, Lyubova Pronina in Moscow and Karthikeyan Sundaram in New Delhi. Editors: Mark Williams, Ben Richardson
To contact the reporter on this story: James Rupert in New Delhi to jrupert3@bloomberg.net
To contact the editor responsible for this story: Peter Hirschberg in Hong Kong to the phirschberg@bloomberg.net
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