Boeing ends contract with HAL over poor

quality of production
US firms decision comes over HALs poor quality of production
Huma Siddiqui | New Delhi | July 30, 2015 10:16 AM

Boeing has over the last few years shifted its component sourcing
requirements in India to private companies Tata Group,
Dynamatic Technologies, Rossell Techsys and others. (Photo:
Reuters)
US defence major Boeing has terminated a contract with state-run Hindustan Aeronautics
(HAL) for component supplies to the formers war and commercial planes being inducted
into the Indian Navy.
Boeings decision came after repeated reminders to HAL about its poor quality of
production, sources said, adding that the US companys move underlined the need for better
strategies by Indias policymakers in order to bolster the order books of defence PSUs.
Boeing has over the last few years shifted its component sourcing requirements in India to
private companies Tata Group, Dynamatic Technologies, Rossell Techsys and others.
Under a $4.7-million contract signed with Boeing in 2010, HAL was to provide weapons bay
doors for eight P-8I long-range maritime reconnaissance and anti-submarine warfare aircraft
that the former would supply to the Indian Navy.
The contract with HAL for equipment for the P8I, through its avionics division in Hyderabad,
was the first P-8I offset package that Boeing had directly executed with Indias largest
aerospace company. In addition to its work on the P-8I programme, HAL was to also supply
Boeing with gun bay doors and wire harnesses for the F/A-18E/F Super Hornet and uplock
boxes for the 777 commercial airplane.
Boeing refused to comment for this story, while senior HAL officials said although there
were problems (with the Boeing contract), these would be resolved.
Boeing is already working with multiple companies in India to fulfil its commitments. We
are actively working global sourcing strategies that can help make Boeing more competitive
around the world, in addition to building Indias aerospace capabilities and meeting our offset
commitments, Dennis Swanson, vice-president of Boeing Defense, Space & Security (BDS)
in India, had told FE in an interview earlier.
Industry sources have indicated that since 2014, Boeing has been expressing its
dissatisfaction with HALs performance and has moved to other firms to meet its
requirements. For instance, Dynamatic Technologies and Tata Advanced Materials (TAML)

are delivering power and mission equipment cabinets for P-8I aircraft, and TAML is also on
contract to provide P-8I auxiliary power unit door fairings. Dynamatic Technologies is on
contract to manufacture the aft pylon and cargo ramp assemblies for Boeings CH-47F
Chinook. Maini and TAL Manufacturing Solutions are on contract to provide C-17 ground
support equipment to Boeing.
Boeing is interested in setting up a manufacturing base in India under the Make in India
programme. It has recently inked a framework agreement with Tata Advanced Systems to
collaborate in aerospace and defence manufacturing and potential integrated systems
development opportunities, including unmanned aerial vehicles.
First Published on July 30, 2015 3:40 am
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