Price Hike for India..... Again?

[Feanor]

So Rosoborneksport recently almost doubled the price of the Mi-17-1V contract, from 650 million to over a billion. The full story is here: http://www.defenseindustrydaily.com/india-to-buy-80-mi17-1v-helicopters-02755/

At this rate Russia is seriously in danger of losing the Indian market.

[jtl310]

So Rosoborneksport recently almost doubled the price of the Mi-17-1V contract, from 650 million to over a billion. The full story is here: http://www.defenseindustrydaily.com/india-to-buy-80-mi17-1v-helicopters-02755/

At this rate Russia is seriously in danger of losing the Indian market.

I have to hand it to them, they must be really good at playing poker. They know the mi-17 is a bargain for the price they sold it at, and they thought why should they sell if for bargain prices? India is paying russia to resurrect an old rusted ship, with the amount of money to almost build a brand new ship.Then why shouldnt the russians raise prices for helicopters that are brand new?

Besides they know no other helicopter is available for the price or time frame, India needs it in, plus the logistics and service centers are already in place.

As i said, u have to hand it to the Russiana, they like to gamble. Since the russians are looking to make money not to build long term relations. They understand the risk of losing future deals for the sake of money. But they also know India is gonna come knocking at their door because their equipment is cheaper and India already uses Russian equipment. So accordingly they price their products to maximize profit.

Going from 700mil to over a billion is no joke! The Russians are serious, and India is getting bent over :nutkick ... and the sad fact is India doesnt have much of a choice...

On the positive side.. as i said atleast the helos are brand new, not used..?:rolleyes:... lol

[Feanor]

On the plus side even at the new price, they're still cheaper then inducting a different helo.

[nevidimka]

I wonder what is the Russian gov is doing. Make enemies out of remaining friends?

[harryriedl]

On the positive side.. as i said atleast the helos are brand new, not used..?:rolleyes:... lol
you never know with the Russians:) the Algerians were not expecting used Migs but they were delivered used planes

[nevidimka]

For the record, the Algerian migs were not used planes! They just contained old parts which were old by manufacturing date!

[Feanor]

And the Algerians were notified ahead of time. The problem with the contract seems that (because they didn't ask for a repair, but instead returned the planes) the SMT itself is inferior to what the Algerians wanted.

[harryriedl]

And the Algerians were notified ahead of time. The problem with the contract seems that (because they didn't ask for a repair, but instead returned the planes) the SMT itself is inferior to what the Algerians wanted.
I thought they were expecting new planes rather than Russian 'White Tail's' aircraft which were older than they were expecting and this was what caused the problem with the contract

[Feanor]

The actual airframes apparently were "new". Some key elements of the plane were older however. This was agreed on ahead of time. The Algerians then claimed the airplane was not up to their quality standards. Whether it was aircraft performance or the worksmaship they did not specify. Most reports seemed to automatically assume worksmaship issues. I'm of the opinion that they were disappointed with the performance of the planes. If it was a worksmanship issue they could've asked for repairs under the original contract due to defective parts. However they instead asked for a whole different aircraft. They asked for more Su-30MKA.

[luccloud]

Was there a contract ever signed with Russia? Does foriegn arms sales like this usually contains no punitive damge for delay or cancelation?

[Feanor]

Was there a contract ever signed with Russia? Does foriegn arms sales like this usually contains no punitive damge for delay or cancelation?

There was a punitive agreement. Algeria gave a 200 million dollar contract to Russian Railroads in exchange for Russia agreeing to take back the planes a renegotiate the contract. Apparently Algeria still wants Russian fighter jets, just not the MiG-29's. They asked for more Su-30MKA's instead. Right now Russia is trying to get them to take the MiG-35's instead.