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**WeissVine** · 04-16-2012, 08:32 PM

Hindustan Aeronautics Ltd forces cost cut in Swiss Pilatus trainer jet deal : India News - India Today

Hard bargaining by Hindustan Aeronautics Ltd (HAL) over billing costs of maintenance transfer of technology (MToT) has helped India strike a better deal with Swiss plane manufacturer Pilatus Aircraft Ltd. for the 75 basic trainer aircraft that will be purchased for the Indian Air Force (IAF). The total value of the deal works out to around $ 1 billion.

According to official documents in the possession of Mail Today, the deal stipulates that spares required for maintenance of the PC-7 Mk-II basic trainer aircraft should be sourced from Pilatus. However, HAL after an in-depth comparison study, found that prices for these spares being quoted by the Swiss company were too high. Pilatus has agreed to adjust the higher cost of spares against the price of the aircraft following objections raised by HAL.

HAL had benchmarked the Pilatus proposal with earlier deals that India struck for the British Hawk advance trainer aircraft, and Jaguar and Mirage fighter jets. It found that the MToT proposal submitted by Pilatus for engine and airframe maintenance was much more limited in scope than the earlier deals and would lead to a sharp increase in costs in the long run.

The outright purchase of aircraft by IAF includes spares and training. IAF will be getting three simulators of the aircraft under the main deal.

Pilatus also left the maintenance of the simulators, which were supposed to have been provided along with the planes for budding pilots, outside the scope of the MToT proposal. It had stated that the maintenance requirement of the simulators will be addressed through a separate arrangement between the IAF and Pilatus. HAL had redflagged this issue.

Besides, one flight-worthy engine was required to be provided by IAF for training and test cell correlation but this had been left out of the scope of the MToT proposal submitted by Pilatus.

04-16-2012, 08:32 PM	#21
WeissVine Join Date Oct 2005 Posts 533 Senior Member	Hindustan Aeronautics Ltd forces cost cut in Swiss Pilatus trainer jet deal : India News - India Today Hard bargaining by Hindustan Aeronautics Ltd (HAL) over billing costs of maintenance transfer of technology (MToT) has helped India strike a better deal with Swiss plane manufacturer Pilatus Aircraft Ltd. for the 75 basic trainer aircraft that will be purchased for the Indian Air Force (IAF). The total value of the deal works out to around $ 1 billion. According to official documents in the possession of Mail Today, the deal stipulates that spares required for maintenance of the PC-7 Mk-II basic trainer aircraft should be sourced from Pilatus. However, HAL after an in-depth comparison study, found that prices for these spares being quoted by the Swiss company were too high. Pilatus has agreed to adjust the higher cost of spares against the price of the aircraft following objections raised by HAL. HAL had benchmarked the Pilatus proposal with earlier deals that India struck for the British Hawk advance trainer aircraft, and Jaguar and Mirage fighter jets. It found that the MToT proposal submitted by Pilatus for engine and airframe maintenance was much more limited in scope than the earlier deals and would lead to a sharp increase in costs in the long run. The outright purchase of aircraft by IAF includes spares and training. IAF will be getting three simulators of the aircraft under the main deal. Pilatus also left the maintenance of the simulators, which were supposed to have been provided along with the planes for budding pilots, outside the scope of the MToT proposal. It had stated that the maintenance requirement of the simulators will be addressed through a separate arrangement between the IAF and Pilatus. HAL had redflagged this issue. Besides, one flight-worthy engine was required to be provided by IAF for training and test cell correlation but this had been left out of the scope of the MToT proposal submitted by Pilatus.
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