BAE signs India jet deal


Defence group BAE Systems and engine supplier Rolls-Royce have signed a £700 million deal to supply products and services for 57 Hawk training jets to India’s Hindustan Aeronautics Limited.

Over £500 million will go to BAE and £200 million to Rolls-Royce, who will build the engines for the jets. BAE will be supplying products and services to enable the aircraft to be built under licence at Hindustan Aeronautics Limited (HAL)’s facilities in Bangalore, India.

Forty of the jets will be used to train fighter pilots in the Indian air force, with the remaining 17 due to go to India’s navy.

Commenting on the deal, BAE Systems group managing director, Programmes and Support, Nigel Whitehead said: “HAL is the premier aerospace company in India and BAE Systems is proud to be able to build on its long-standing relationship with HAL to deliver a further batch of this excellent aircraft to increase the Indian Air Force’s fast jet training capacity and establish a similar fast jet training solution for the Indian Navy.”

The company’s group managing director international, Guy Griffiths, added: “This new order continues and strengthens the long standing relationship between BAE Systems and HAL. It highlights the importance of BAE Systems’ strategic development of India as a home market, and the benefit of solid government support.”

With 18 customers, the Hawk aircraft has been widely exported around the world. Customers include Australia, Canada, South Africa, Bahrain, India and the UK’s Royal Air Force.

India has been making significant investments in defence of late, having already tripled spending in the area over the past 10 years.

Headquartered in Hampshire, UK, BAE Systems has approximately 107,000 employees worldwide. In 2009, it reported sales of £22.4 billion.