IDEX 2009: UAE Closing on Deal for AirliftersBy andrew chuter
Published: 22 Feb 09:32 EST (14:32 GMT)
ABU DHABI - The United Arab Emirates could reveal a sweeping upgrade of its airlift capability in the next few days. The final touches to agreements to purchase Boeing C-17 and Lockheed Martin C-130J were being completed as the IDEX defense show opened Feb. 22 in Abu Dhabi.
The intended purchases could be announced as early as Feb 23, industry executives familiar with the talks say. A deal would be worth hundreds of millions of dollars to the two U.S. companies, they say.
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Selection of the aircraft would represent a major upgrade of an airlift capability here that currently is largely based on early model C-130s and EADS Casa CN-235s. The UAE also has Airbus A330 tanker transports on order.
An announcement on the airlifter would be one of the highlights of a defense show that the UAE hope to use to demonstrate that it is business as usual in the defense sector despite the financial problems besetting some parts of the Gulf.
An agreement with Raytheon to purchase the latest AIM-120 C7 version of its air-to-air missile kicked off proceedings here today. The weapon will equip Lockheed F-16 Block 60 fighters operated by the UAE air force.
Speculation the two U.S. airlifter heavyweights are close to securing major orders here for their aircraft was fueled by large models of the two aircraft sitting hidden under white shrouds on the stand of UAE state investment company Mubadala.
An executive on the stand refused to take off the shroud for a picture and said the aircraft would remain covered until the afternoon of Feb. 23.
Removal of the shrouds will be linked to the planned Feb 23 announcement outlining the UAE's intention to purchase around a dozen C-130Js and a handful of the much bigger C-17s, industry sources familiar with the deals say.
Boeing and Lockheed Martin both declined to comment on whether an announcement is planned.
The planned purchase mirrors a similar, but smaller, deal with nearby Gulf state Qatar. It recently agreed to purchase four C-130Js and a small number of C-17s.
The actual number of C-17s being purchased by the Qatari government has never been officially disclosed. However, analysts say the deal with Boeing is for two of the giant airlifters.
Production of C-130s is rising to unprecedented levels, with Lockheed-Martin currently planning to double the number of aircraft coming off the assembly lines in the U.S next year. The current level stands at 16.
The U.S. company is chasing several further sales prospects in the region, including a possible deal later this year with Iraq to purchase up to six C-130Js.
For Boeing, the UAE deal will help maintain a production line that is under threat of closure as orders from the U.S. Air Force dwindle.
Source
http://www.defensenews.com/story.php?i=3958760&c=MID&s=AIR
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