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Czech Aero nearing deal to sell fighter planes to India

Czech aircraft manufacturer Aero Vodochody is nearing a landmark deal for its subsonic fighters with India, which would help to establish the once-troubled company on the world stage.

"We assume that they (India) have a real interest in this airplane given how negotiations are going forward. We believe we could be successful," company chairman Antonin Jakubse said in an interview in Odolena Voda, Czech Republic.

Aero, partly owned by a local unit of US Boeing, posted its first profit in a decade last year largely due to l-159 fighter deliveries to the Czech armed forces.

Now it is offering 66 of the twin-seater fighters and several offset proposals to Indian aircraft manufacturer Hindustan Aeronautics Ltd.

India, rumoured to be seeking as many as 300 to 400 trainer planes, is looking for this type of aircraft to increase training and reduce the air force's high rate of accidents.

The country has been in talks for several years with BAe Systems for the supply of Hawk combat trainer planes in a deal estimated at more than $ 1.57 billion.

Aero said earlier that India would save hundreds of millions of dollars if it chose the Czech offer.

A source close to the Indian defence ministry told Reuters on Monday that the ministry was still evaluating the bids and nothing had been decided.

Jakubse said he is very confident on signing two other contracts by year-end for l-159B twin-seat jets and said The Philippines, South America and the Gulf nations were potential markets.

"The Philippines are interested in the aircraft manufactured by Aero Vodochody. No doubt we are one of the subjects they want to talk to," he said. He declined to elaborate.

Aero, which signed its first deal for deliveries of 72 l-159 subsonics with the Czech armed forces five years ago, was also hoping to clinch other l-159 deals for 18 planes in South America and 10 in the Gulf.

"There are a couple of countries in the Gulf which could be very good clients for our company in next few years," he said.

The Czech army operates 41 l-159s with a further 31 on order with delivery expected by the end of 2003. He added the company is close to signing a contract with Thailand to upgrade older trainer planes from Aero but similar talks with Egypt have slowed.

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