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Eurocopter, HAL likely to form JV for new choppers for India

Ranvir Nayar in Paris

Hindustan Aeronautics Limited's negotiations with Eurocopter for future cooperation are at an advance stage. A joint venture to manufacture some of the state-of-the-art Eurocopter machines is likely.

The two companies have been partners for over 40 years now. HAL's Chetak and Cheetah helicopters are licensed products of Eurocopter. The two models form the backbone of the Indian defence forces. HAL recently turned out the 584th chopper unit. However, the defence forces are said to be on the lookout for new, better models.

"We would be very much interested in being involved with the programme if HAL decides to replace the Chetak and the Cheetah with more modern and contemporary aircraft,'' Philip Advani, managing director, Aerospatiale Matra India, told Rediff On The NeT at the Le Bourget airport, the site of the Paris Air Show.

European aviation colossus, Aerospatiale Matra, is the parent company of Eurocopter.

Advani said the fact that HAL is on the verge of production of the indigenous Advanced Light Helicopters should not in anyway conflict with the cooperation on other projects. ``We are talking about systems that could complement the ALH. We could look at other helicopters that are either lighter or heavier than ALH. And there is plenty of room for us to develop these machines for both civil as well as defence uses in India,'' said Advani.

HAL Chairman and Managing Director, C G Krishnadas Nair, too confirmed that the two companies were in talks over the introduction of some new models in the Indian skies. ``We need to develop some more helicopters and we are talking to Eurocopter about possible cooperation with them on this issue,'' Nair said during his week-long visit to Paris last week.

Thus, while both the companies agree on cooperating, it is perhaps the form that such cooperation should take is where the differences might surface.

HAL has firmly stated that its new policy will be joint development or joint cooperation in its future projects. ``We are equal partners in all our ventures and want to be treated as equal partners. The days of licenced production or mere technology transfer are gone. Henceforth, joint ventures and collaborations are the keywords,'' said Nair.

Nair said HAL is now willing and capable of putting in its share of equity in such joint ventures and hence there should be no reasons why its collaborators cannot accept 50:50 joint ventures.

He, however, added that the details of any such collaboration with Eurocopter were yet to be finalised. Advani, on his part, said Eurocopter is open to examine all the possibilities of the form that any cooperation with HAL could take. ``Eurocopter has had licensed production and technology transfer experience with HAL. It is open to other forms of cooperation as well. We will examine all the possibilities and then depending on our negotiations with HAL, we are open to any shape that such a venture can take,'' said Advani.

Although Eurocopter may not be very comfortable with a 50:50 partnership with HAL, aviation analysts suggest it can not hold out much longer. ``Eurocopter is clearly ahead in the Indian civil helicopter market, but Bell is right on its heels and if Eurocopter wants to retain its market leadership or indeed consolidate its position considerably, the joint venture with HAL is the way to go. And sticking on points like who should have how much equity may not be allowed to become the point of parting,'' said an aviation analyst.

Eurocopter is pushing two products from its vast range as the most suitable for the Indian needs. These are EC135, which is bigger than ALH and EC120 on the smaller side. Eurocopter has also participated in the development of ALH, through its German arm, basically on the architecture of the programme of development of the ALH. Advani said Eurocopter will be happy to assist HAL further in the project, if desired.

Advani said he had a series of useful meetings with the HAL management during the air-show and is keen to keep up the momentum of these talks. ``Right now, we are looking at summer breaks in both India and Europe and I hope that the talks will resume by early September and from then on move in a very significant fashion,'' says Advani.

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