Analysis: European defense contracts

BRUSSELS, Sept. 2 (UPI) -- Agusta beating Sikorsky for Indian VIP copter deal

AgustaWestland looks set to land an estimated $300 million deal to build India 12 VIP helicopters to transport the president, prime minister and other dignitaries unopposed after Sikorsky was eliminated in the competition, Defense News says.

Following the retirement of a set of Russian-built Mi-8 helicopters bought in 1982, India launched a competition between the Italian AgustaWestland company, the American Sikorsky company and the Russian Kamov company. Kamov had previously been eliminated from the competition for technical reasons. Now Sikorsky has been eliminated for its failure to meet certain requirements during no-cost, no-commitment testing.

Sikorsky's S-92 helicopter did not fulfill the requirements set forth by the Indian air force and the Special Protection Group, which protects VIPs. The Sikorsky copter also fell short on its rate-of-climb capacity and wasn't helped by having a smaller volume and lower tail boom that AgustaWestland's EH101, which is also known as the AW101.

Eight of the helicopters will serve to carry 10 passengers each and will be equipped with top-of-the-line features, such as attack protection and communications.

Price negotiations have not yet been completed. However, the Indian air force anticipates that the new helicopters will be in service for approximately 30 years.

Saab may sell Gripen to Netherlands

The Swedish Saab Corp. is hoping to sell its Gripen next-generation fighter aircraft to the Netherlands as the successor to the Dutch air fleet of U.S.-built F-16s.

The Royal Netherlands Air Force was offered 85 of the Swedish Gripen Next Generation fighter jets as well as training, spare parts, simulators and product support with a price tag of $8 billion. The deal is thought to be within the program's $8.2 billion budget.

Any contract for the F-16 successor aircraft, however, is not expected to be finalized for at least two years.

The Gripen has already been sold to Hungary and the Czech Republic, and Saab is seeking more orders for it from Romania, Switzerland, Bulgaria, Denmark, Norway and Croatia.

The Gripen NG will face strong competition for the Dutch contract from Lockheed Martin's F-35 Lightning II and Sikorsky's F-16 Block 60. Other entrants are the Dassault Rafale from France, the Eurofighter Typhoon and the Boeing F-18A Super Hornet.

France, Greece, Netherlands to receive Hellfire missiles

France, Greece and the Netherlands are in line to receive several thousand Lockheed Martin Hellfire II precision-strike, laser-guided missiles. The missiles will be sent to these countries by the U.S. Army after it buys a large contingent of them for $357 million in 2010.

The U.S. Army may eventually buy as many as 15,000 Hellfire IIs from Lockheed Martin.

The three European nations will buy the missiles through the Foreign Military Sales program. It will be the first time that France buys Hellfires, reflecting the pro-American defense policies of President Nicolas Sarkozy.

Sarkozy wants to integrate French defense planning more closely with the United States. He also wants to boost the high-tech strike power, and especially the air-to-ground tactical support systems, of the French air force.

The French are expected to arm their Tiger attack helicopters with the U.S. Hellfires in 2012.

Lockheed Martin anticipates that Turkey and Spain may also decide to buy the Hellfire IIs.

Rosoboronexport sells APCs to Indonesia

Indonesia has bought 20 armored personnel carriers from the Russian state-owned arms export giant and monopoly Rosoboronexport, according to a spokesman.

RIA Novosti reported that the deal was worth approximately $40 million, or $2 million per vehicle. Delivery should be completed by 2010.

The agreement is the latest in a string of recent arms deals between Russia and Indonesia. It follows Indonesia's purchase on easy credit terms of helicopters, submarines and tanks from Russia.