JED - January 2010 - (Page 28)

world repor t EADS’ INDIAN JOINT VENTURE STALLS A proposed joint venture between EADS and Larsen & Toubro, which would have cooperated to provide EW systems, radars and avionics to India, has reportedly stalled because of Indian government concerns that it would exceed the country’s foreign investment limits. Larsen & Toubro, India’s biggest private defense contractor, is part of an overall engineering powerhouse dealing in everything from software to energy. The link up with EADS was designed to take advantage of the Indian government’s increased military procurement funds – up to US$30 billion over five years – as the country replaces its aging equipment. Issues with the agreement emerged in late summer when India’s Foreign Investment Promotion Board (FIPB) dug into the financials and determined that while overall foreign investment from EADS would be below the country’s cap of 26 percent, additional equity being funneled through the joint venture could possibly allow EADS up to 49 percent equity. Though several industry lobby groups are pushing to increase foreign ownership limits up to 49 percent, for now the FIPB has rejected the current EADS and L&T joint venture. However, this is not the first joint venture to experience difficulty with the Indian foreign investment rules. EADS may be able to adjust the agreement to secure approval. Case in point: BAE Systems’ joint venture with Indian automaker Mahindra & Mahindra, designed to produce armored vehicles for the country, experienced a similar issue in October. A revised proposal adjusting BAE’s ownership stake down to the 26 percent cap was approved by the FIPB last month. And there will be incentive for foreign companies to make these adjustments as a way to get at least a foot in the door of the lucrative Indian defense market. – E. Richardson AUSTRALIA TAKES WEDGETAIL, REAFFIRMS JSF Boeing has delivered the first two of the new Wedgetail 737 Airborne Early Warning and Control (AEW&C) aircraft to the Australian Department of Defense. The Wedgetail, based on the new Boeing 737 commercial airframe, provides upgraded radar and sensor AEW&C capabilities. The deliveries allow the Royal Australian Air Force to begin training on the aircraft, even though Air Vice Marshal Chris Deeble, Australia’s AEW&C Program Manager, noted in the DOD release that: “Development, test and evaluation are still ongoing with many hurdles still to be overcome, particularly with respect to radar, electronic support measures and integrated system performance and stability.” Last month, The Australian reported that Boeing will end up paying the Australian government nearly AUS$100 million for delays in the program, which is about four years behind schedule. The company is contracted to deliver three additional Wedgetails to the RAAF by the end of 2010, one of which is scheduled to include an upgrade to the final configuration of the Elta-manufactured ESM system. The remaining two aircraft should receive the upgraded ESM by early 2011. The country is set to buy six total Wedgetails at a cost of more than US$3.7 billion. In late November, the Australian government also approved an AUS$3.2 billion acquisition program for the RAAF’s first 14 F-35 Joint Strike Fighters (JSF). The DOD has plans to acquire three operational squadrons totaling at least 72 aircraft and, according to the DOD release, will consider funding approval for the remaining aircraft in 2012, as well as whether to increase to an additional squadron “in conjunction with a future withdrawal decision on the F/A-18F Super Hornets.” – E. Richardson The Journal of Electronic Defense | January 2010 In Brief ❍ The United Arab Emirates have requested the sale of CH-47F helicopters and communication equipment, as well as parts, equipment, training and logistical support via Foreign Military Sale (FMS) from the US. The package, worth approximately $2 billion, includes 16 Chinooks, 20 single channel ground and airborne radio systems (SINGCARS) with electronic counter-countermeasures, as well as 18 APR-39A(V)1 radar signal detecting sets with mission data sets. The proposed sale gives the UAE capability to transport equipment and troops and to support US and allied airlift needs in Afghanistan. ❍ Turkey has also requested sale of CH-47F helicopters, as well as parts, equipment, training and logistical support via FMS. The package, worth approximately $1.2 billion, includes 14 Chinooks, 28 SINGCARS and 14 APR-39A(V)1 radar signal detecting sets along with support equipment, spare and repair parts, personnel training and training equipment and logistics support. The proposed sale improves Turkey’s ability to meet current and future domestic defense needs. ❍ The Naval Surface Warfare Center (Crane, IN) has announced plans to award a sole source, firm-fixed-price contract to Israel Military Industries (IMI) (Ramat Hasharon, Israel) for countermeasure decoy flares to be used in the Foreign Comparative Testing (FCT) program, which will test the flares against US and other foreign countries’ flares. a

Table of Contents for the Digital Edition of JED - January 2010

JED - January 2010
The View From Here
From the President
The Monitor
Washington Report
World Report
Asia-Pacifi c EW: All Eyes on China?
Maneuver in the EM Domain
Technology Survey: Surface Naval Expendables and Launchers
EW 101
AOC Industry/Institute/University Members
Index of Advertisers
JED Sales Offices

JED - January 2010