Boeing Ends $4.7 Billion HAL Contract Citing ‘Shoddy’ Production Quality

Boeing has ended $4.7 million contract with Indian Hindustan Aeronautics (HAL) citing shoddy production quality of components for the nation’s P-8I Poseidon maritime patrol aircraft and F/A-18E/F Super Hornet.

“Boeing decided to end the contract after repeated remainders to HAL about its ‘poor quality’ of production. Boeing’s move underlines the need for better strategies by Indian policy makers in order to bolster the order books of defense public sector undertakings (DPSUs),” Financial Express quoted unnamed sources as saying Thursday.

Boeing has shifted its component sourcing requirements in India to private firms in the last few years. Tata Advanced Materials (TAML) and Dynamatic technologies for power and mission equipment cabinets for P-8I aircraft, TAML is also contracted for P-8I auxiliary power unit door fairings. Dynamatic Technologies is on contract to manufacture the aft pylon and cargo ramp assemblies for Boeing’s CH-47F Chinook. Maini and TAL Manufacturing Solutions are on contract to provide C-17 ground support equipment to Boeing.

“There were problems (with the Boeing contract), these would be resolved,” the news daily quoted senior HAL officials as saying.

“Boeing is already working with multiple companies in India to fulfill its commitments. We are actively working global sourcing strategies that can help make Boeing more competitive around the world, in addition to building India’s 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.