Switzerland's Pilatus set to bag $700 million Indian Air Force jet trainer deal

Pilatus head Oscar J. Schwenk in a recent interview to a German newspaper claimed the deal would be signed soon and that the company started work on the Indian order two months ago. The 75 Pilatus PC-7 Mk-II turboprop aircraft that the IAF is looking to buy will cost an estimated $700 million.

Though the contract will be for 75 aircraft, it is likely to be expanded as the IAF has a requirement of 181 trainers. India may eventually go for 250 PC-7 Mk-II. The Swiss aircraft had emerged as the lowest bidder last year beating competition from Korean Aerospace Industries, which had pitched the KT-1 trainer. There were delays as the IAF was made to answer a number of questions pertaining to the life-cycle cost of the aircraft. This was the first contract in which life-cycle cost came into play in determining the price.

The delay was also attributed to some serious effort by the Koreans to raise a hue and cry at the government-to-government level. It resulted in a lot of questions being raised on the veracity of the contract going to Pilatus.