Pitching its F/A-18 Super Hornet to India’s air force and navy, US
military contractor Boeing Co. has said the twin-engine fighter plane is
cheaper to operate than a single-engine jet, citing a US government
study.
In an interview, Boeing Defence Space and Security chief
executive Leanne Caret, speaks about the company’s plans to pursue an
upcoming multi-billion dollar fighter programme, Make in India
opportunities and the defence ecosystem in the country. Edited excerpts:
What brings you here?
I
have been doing business in India for almost a decade. There’s
incredible talent here and I have always had a general mindset that as a
global firm, we need to have that global reach and that local presence,
and need to provide that uncompromising service to our customers around
the world. I am so excited by all the incredible progress we have made
here in India not only in the products and services that we provide but
also in how we have a localized workforce of more than 1,500 and we are
continuing to grow every day.
Tata Boeing Aerospace (TBAL) inaugurated its facility in Hyderabad today. What is this joint venture (JV) all about?
When
you talk about being a global firm and especially if you are US-based,
many times it means you are exporting outside the US. However, we
believe that a win abroad is a win at home. So this partnership is
really critical and as we have looked at future opportunities…just
thinking through the lens of exporting the goods wasn’t going to be good
enough.
It’s about making sure we take full advantage of the
talent and capability here in India. So, the JV is just a series of
steps we have taken over the years…One of the first outputs of TBAL will
be the Apache fuselage that will be provided to the global market
space. It won’t be just for customers here in India but for all our
customers.
But Indian customers are also going to get the real
benefits of having that product made here. So, it’s a pretty exciting
time and we will build upon that. There are the IAF Apaches and the army
Apaches… both will benefit from this JV on day one.
India is
looking at building war planes locally under the ‘Make in India’ plan
and the IAF has been asked to come up with its requirements. Will you
build F/A-18s here?
We believe the F/A-18 provides great
capability to the Indian government. We believe it’s a viable candidate
in the competition. We obviously need to wait for procurement to begin
and for the government to decide whether they are going to have a
two-phased competition or a single competition. Boeing will respond
appropriately. What we have always committed to from day one is that we
are looking to put significant work content here in India, and the
actual requirement of fighters will determine the final outcome.
In a scenario where India is keen to go for F/A-18s, will you consider setting up a factory in the country and also export?
We
are assessing all options. It goes back again to what is the quantity.
If you are talking about a small quantity of aircraft—because they have
not come out with the official number—it will dictate what is
affordable, because whatever we do has to be affordable.
I met
many of the services today. The number one comment across the service
branches—army, navy and IAF—was ‘we need affordable’. And making certain
we do the right thing that provides best value for money is our focus,
and how we can best do that, is where our intent will be.
What is your sense of the Indian requirement for fighters? What will be a good number to set up a production line here?
This
is one of those where it is important for the customer to lead. It is
important they put out their requirement and then we respond in kind.
They have had numerous requests for information on capability and
different things that we have responded to.
But I very much
respect the process the government is going through in terms of what is
the capability they need and how do they best want to fulfil that—and
then we will respond appropriately.
What makes you feel the
F/A-18 is a viable platform for India, considering that Boeing was
knocked out of an earlier competition?
I am not going to go back
to the outcome of that competition. The US Navy continues to show great
confidence in the F/A-18, and we are moving forward with an upgrade and
continue to put modernization efforts into it, called the Block 3.
You
know about the recent announcement by Kuwait to buy additional planes.
This is a viable capability that continues to prove itself in conflicts,
and is a great strategy in terms of a fleet mix for a number of
countries. For that reason, and based on how the air force and navy
operate their fleet, we think the capabilities are a good fit and look
forward to the competition.
How different is the F/A-18 you are offering now from what was offered a decade ago?
It
once again goes back to what the customer’s requirements are. If we
wanted to push just a point solution, that would be one
conversation….rather, Boeing prides itself on a close relationship with
customers by listening to them and responding appropriately to bring
forward affordable solutions to meet their capability needs. That’s
really what is at the heart of our strategy.
The defence sector ecosystem in India is work in progress. Your comments on the strengths and weaknesses?
Talent
here is most important and India is recognized for having amazing
technology and innovation. This is something that as a global company we
really want to take full advantage of, and make it part of the fabric
of what we do.
I think that is a win-win for the country as well,
because when you have firms like Boeing and others that see this type
of capability and talent, and we can invest in these projects
together…it helps by definition in creating that ecosystem. There is no
lack of expertise and talent here and we want to take full advantage of
that.
India has ordered 36 Rafale fighter jets and there’s
buzz about the F-35 stealth fighters being offered to the IAF. And you
are offering F/A-18. What do you make of it?
Each country has its
own needs and will determine its own fleet mix and how they operate. I
think it will be inappropriate of anyone in the industry to say what
that fleet mix should be like.
That again goes back to our
fundamental belief that we want to listen to what the customer wants.
There is a multitude of products that they rely upon and how they wish
to execute their missions during both peacetime and wartime. And what we
want to make certain is… to allow them to get the best capability that
they need in whatever mission they are serving.
Does the F/A-18 match the Rafale and F-35?
Let’s
put it this way. My point continues to be that we need to know what the
customer’s requirements are, and then we will put forward our best
offer in support of that requirement.
If numbers make a good
business case, would you be willing to set up a production line in the
country? And have you done any math on what kind of production
opportunities could arise from India for your other global customers?
We
have clearly looked at a range of options. This conversation has been
ongoing for a number of years and so quantities will dictate how we can
provide the best value. It wouldn’t be the first time or the last time
we have looked at opportunities to do more work for nations outside the
principal location.
Going back to the example of TBAL, I think it
gives you exactly the point, that we are not just building fuselages
for Apaches here in India but are building fuselages for our worldwide
supply.
And therefore, we have already put on the record and
proven that we are willing to do that. Again, it is about the business
case closing and making certain all the numbers work out.
Will Tata be the partner for other platforms too? Or are you exploring other options ?
Both.
I am not going to divulge names of other companies we are having
discussions with. What I will say is, we are continuing to look for ways
to localize our presence. It is part of the commitment.
Are all agreements in place for unhindered transfer of technology? Or are there any barriers?
Some
of the overarching technologies are at a government-to-government
level, where parameters have been set when it comes to certain products
and certain pieces of equipment.
There is a process that
governments work together on to get the (technologies) released and
those are done on a case-to-case basis, as requirements pop up. I think
it’s a very cooperative process…And if for some reason some piece of
equipment wasn’t approved, then what are alternative pieces providing
similar capability…is all part of the process we work through.
Which bureaucracy is more difficult to deal with—Indian or US?
(Laughs.) We all have our plusses and minuses. I think we have been growing together.
When did you last fly in an F/A-18?
I
flew in a Super Hornet last year. I didn’t pull as many Gs (G forces)
as my contemporaries have pulled. Let’s just say, we flew around for
quite a while and I flew upside down. It was the ride of a lifetime.
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