High price threatens to derail the Indian Air Force Boeing C-17 Globemaster III deal

The acquisition of ten Boeing C-17 Globemaster III strategic heavy lift transporters by the Indian Air Force, which was one the cornerstone deals during the recent visit of US President Barack Obama to India, has hit a price hurdle.

The Indian Express newspaper is reporting that the Indian Air Force had estimated the 10 aircraft deal to be around $3 billion based on the $300 million Australia is paying for each C-17 they are purchasing. Now the deal is pegged at $4.1 million by the White House, and at a whopping $5.8 billion in the official notification made last month to the US Congress.

Apparently the Indian Air Force has been taken aback at this high cost, and with various scams and revelations repeatedly tainting the ManMohan Singh administration, and with upcoming elections in key states, the Indian government is on a defensive wicket.

The Indian Express reports the Indian Ministry of Defence has written to Washington to disclose the comparative prices at which the aircraft has been sold to other nations.

This must surely be unwelcome news for Boeing which has seen the contract to its final stages, having completed commercial negotiations with the India Government.

Read the related Indian Express articles.

About Devesh Agarwal

A electronics and automotive product management, marketing and branding expert, he was awarded a silver medal at the Lockheed Martin innovation competition 2010. He is ranked 6th on Mashable's list of aviation pros on Twitter and in addition to Bangalore Aviation, he has contributed to leading publications like Aviation Week, Conde Nast Traveller India, The Economic Times, and The Mint (a Wall Street Journal content partner). He remains a frequent flier and shares the good, the bad, and the ugly about the Indian aviation industry without fear or favour.

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