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The Israel Aerospace Industries (IAI) has been forced to withdraw from the joint partnership with Swedish aerospace company Saab to compete in the a multi-billion dollar tender to sell new multi-role fighter jets to the Indian Air Force. This move was triggered from the U.S concern that U.S technology would become available to India through Israel since the “Gripen” aircraft offered by IAI and Saab would integrate U.S technology.
The $12 billion deal for 120 multi-role aircraft for India is being contended by Lockheed Martin’s F-16, Boeing’s F-18/Hornet, Russia’s MiG-35 and BAE’s Eurofighter. The Defense Ministry ordered IAI to back out of the deal after the Pentagon expressed concern that American technology, used by Israel, would be integrated into the Gripen.
Interestingly, the two major American firms Boeing and Lockheed Martin are also competing for the multi-role aircraft deal and it is felt that Americans were concerned that if IAI and Saab’s pitch would undermine their deal since it would force the American companies to lower their prices.
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