Saudi Arabia, Pakistan Eye Joint AEW Buy

Ray · 11-14-2004, 08:41 AM

Quote:

Defensenews.com

Saudi Arabia, Pakistan Eye Joint AEW Buy
By BARBARA OPALL-ROME,

TEL AVIV Saudi Arabia and Pakistan are discussing a joint purchase of 14 airborne early warning and control (AEW&C) aircraft based on Sweden’s Saab 2000 regional airliner and the Erieye radar and sensor suite by Ericsson Microwave Systems, according to an analyst specializing in South Asian military affairs.

In an Oct. 29 interview from Kuala Lumpur, Prasun Sengupta estimated the aircraft would cost up to $1.7 billion, the bulk of which would be funded by Saudi Arabia in exchange for in-country training of Saudi crews by Pakistani Air Force personnel.

The prospective deal, which he characterized as in advanced stages of negotiation, envisions seven aircraft for Saudi Arabia and seven for Pakistan. Used Saab 2000s would be refurbished with the Ericsson AEW&C system. As part of the package, Pakistan also would receive seven basic Saab 2000s, which would be upgraded for use by its national airline, Pakistan National Airlines, and Saudi Arabia would acquire an additional three or more used Saab 2000s for spare parts, Sengupta said.

“Since the [Saab 2000] production line is closed, these aircraft will be bought back from regional operators and sent for depot-level maintenance to bring the airframe and the engines back to zero-life — practically mint condition,” Sengupta said. “Then Ericsson, as a subcontractor to Saab, will install and integrate its Erieye system, which has already been validated in this aircraft.”
A Pakistani purchase of AEW aircraft would follow India’s recent acquisition of similar Israeli planes, while Saudi Arabia may be looking to replace its 1980s-vintage Airborne Warning and Control System (AWACS) aircraft.

Saab spokesman Peter Larsson confirmed the discussions with Pakistan, but declined comment on whether there were any talks under way involving the Saudis. However, several European sources confirmed there are talks under way on unspecified defense deals between the Swedes and Saudi Arabia. Ericsson declined to comment on the matter, and Swedish defense officials did not respond to requests for comment. A Pakistani diplomat in Washington said he had no knowledge of the deal. Sengupta said he was “100 percent certain” of the joint Saudi-Pakistani discussions with Saab and other industry partners. He said his information was verified by Swedish and European industry sources in Kuala Lumpur and by participants in Pakistan’s International Defence Exhibition and Seminar (IDEAS 2004) held Sept. 14-17 in Karachi, Pakistan.

Pakistani Press Reports

Since Gen. Pervez Musharraf, Pakistani president and Army chief of staff, visited Stockholm in July, various Pakistani media outlets have published reports of an imminent purchase of at least six of the Saab/Erieye AEW&C planes.

A mid-July report in the Pakistan Times also noted that Musharraf’s visit paved the way for a visit later that month by Air Chief Marshal Kaleem Saadat, chief of staff of the Pakistani Air Force. According to the paper, Saadat was expected to pick up where Musharraf left off with regard to technical aspects of the deal. Sengupta’s assessment, however, is the first that links Saudi Arabia with Pakistan in the prospective AEW&C deal. The analyst said that the Swedish government had approved the sale, notwithstanding its policy of denying weaponry to regions of conflict, since the Saab 2000 is a commercial aircraft and the Erieye AEW&C system is defensive in nature.

Pakistan and Saudi Arabia have been close strategic allies since the early 1970s, when a Pakistani Air Force squadron was deployed in the Saudi kingdom to assist air defense operations. A 2003 defense cooperation agreement has led to contracts to supply Saudi forces with Pakistani-built Al-Khalid tanks, Super Mushhak trainers, armored personnel carriers and Baktar Shikan wire-guided anti-armor missiles.

“Pakistan has always been there to meet the military needs of Saudi Arabia,” said Shireen Mazari , the director general of the PISS (Pakistan Institute of Strategic Studies) in Islamabad. “The two countries have been for some time sharing intelligence, holding joint military exercises and exchanging defense technology.” Most regional analysts believe that the two neighboring states have been fulfilling each other’s needs; Pakistan supplies defense technology and training, the oil-rich kingdom provides cash.

“The Kingdom has always provided big financial support to Pakistan,” said Anwar Eshki, chief executive of the Jeddah-based Middle East Center for Strategic and Legal Studies. “Saudi officials wish to benefit from Pakistani military expertise and defense technology.”

Saudi Arabia also has been the main source of energy to Pakistan, which is another main reason for Islamabad to develop a “unique relationship” with Riyadh, said Talat Masood, an Islamabad-based defense analyst and a retired Pakistani Army lieutenant general.

Response To Phalcon?

Israeli industry and defense sources could not confirm the existence of talks on a joint Saudi-Pakistani AEW&C procurement deal.

“We have no information on these discussions, but it wouldn’t surprise me. It sounds like a realistic response to our sale of the Phalcon to India,” an Israeli defense official said. He was referring to the $1.1 billion, three-aircraft sale of advanced AEW&C aircraft by Elta Systems to the Indian Air Force, which was concluded in early 2004.

When reporters at the IDEAS event in Karachi asked Pakistan’s Saadat about Indian-Israeli cooperation, he said, “We have no right to object to close relations between India and Israel, but we have concerns and are fully aware of our defense needs.”

Sengupta said the prospective Saudi-Pakistani AEW deal could prompt the Indian Air Force to exercise an option to buy an additional three Phalcons from Israel by 2007. “In light of the impending acquisition of the Saab/Erieye by Pakistan, it is more or less a foregone conclusion that New Delhi will exercise options for an additional three Israeli AEW aircraft.” {I sense Isreali making hard sell indirectly:Arun}

AWACS Alternative

The Israeli official noted that Tel Aviv and its U.S. congressional supporters likely would object to a repeat of the multibillion-dollar U.S. sale to Saudi Arabia of five Boeing 707-based AWACS aircraft, a deal finalized in 1981 after contentious and protracted debate between the executive and legislative branches of the U.S. government.

Deliveries of those aircraft were completed in 1987, and Boeing announced in September 2003 that it had completed a $60 million upgrade to the fleet’s mission computers and other hardware and software for the Saudi fleet. A Washington industry source who follows U.S. export licensing matters said the U.S. State Department likely would limit any kind of follow-on package that the kingdom might have sought from Boeing and the U.S. Air Force. “Getting the data is one thing, but when it comes to acquiring the final synthesized picture, that’s where the degree of control is very high,” the U.S. source said. “The Saudis won’t have access to this, and that could be one of the reasons for seeking an alternative.”

A European industry source said the U.S. company is in talks with the Saudis about a further round of upgrades on the 707s. Boeing officials say they are unaware of the Saudi-Pakistan discussions with Sweden. But Dave Sloan, a company spokesman, said Boeing “continues to support our Saudi customers and are ready to talk to them about any further requirements.” But, the European source said, one of the options was to ditch the E-3s and purchase a new system. While the Saab 2000, normally a 50-seat airliner, has shorter range and endurance than a Boeing aircraft, air warfare experts say the Erieye system is highly capable.

Its active, phased-array, electronically scanning and dual-side looking radar has an instrumented range of 450 kilometers and is able to detect multiple fighter-sized targets from 350 kilometers or more. Saab sources defended the choice of aircraft, saying the 2000 has a highly automated “glass cockpit” and an endurance of up to nine hours.

The Swedes also have also offered the 2000 to Malaysia, competing against the Ericsson-equipped Embraer 145 and the Northrop Grumman E-2 Hawkeye for a four-aircraft, $1 billion sale, a Saab executive said. • Andrew Chuter contributed to this report from London, Riad Kahwaji from Dubai, Gopal Ratnam from Washington, and Pierre Tran from Paris.

Warfare will become interesting in the sub continent.

ajaybhutani · 11-14-2004, 17:09 PM

[quote]In an Oct. 29 interview from Kuala Lumpur, Prasun Sengupta estimated the aircraft would cost up to $1.7 billion, the bulk of which would be funded by Saudi Arabia in exchange for in-country training of Saudi crews by Pakistani Air Force personnel.

The prospective deal, which he characterized as in advanced stages of negotiation, envisions seven aircraft for Saudi Arabia and seven for Pakistan. Used Saab 2000s would be refurbished with the Ericsson AEW&C system. As part of the package, Pakistan also would receive seven basic Saab 2000s, which would be upgraded for use by its national airline, Pakistan National Airlines, and Saudi Arabia would acquire an additional three or more used Saab 2000s for spare parts, Sengupta said.
[quote]
i wonder how can they buy 14 AWACS for 1.7 B$. From the discussions on in PDf iteself the cost of SAB200 is 300 mn $ for 7 aircraft and the package for 7 AEWAC with 7 sab2000 costs 1.4 B $ amounting to 200 mn a pc. But 14 for 1.4 Bm* since 300 mn goes for PIA) sounds a bit too cheap for a AWAC.
Frankly its either 7 AEWACS or cost is much more ( mayb 3 bn dollars).

Hawk_eye · 11-15-2004, 20:20 PM

[quote=ajaybhutani][quote]In an Oct. 29 interview from Kuala Lumpur, Prasun Sengupta estimated the aircraft would cost up to $1.7 billion, the bulk of which would be funded by Saudi Arabia in exchange for in-country training of Saudi crews by Pakistani Air Force personnel.

The prospective deal, which he characterized as in advanced stages of negotiation, envisions seven aircraft for Saudi Arabia and seven for Pakistan. Used Saab 2000s would be refurbished with the Ericsson AEW&C system. As part of the package, Pakistan also would receive seven basic Saab 2000s, which would be upgraded for use by its national airline, Pakistan National Airlines, and Saudi Arabia would acquire an additional three or more used Saab 2000s for spare parts, Sengupta said.

Quote:

i wonder how can they buy 14 AWACS for 1.7 B$. From the discussions on in PDf iteself the cost of SAB200 is 300 mn $ for 7 aircraft and the package for 7 AEWAC with 7 sab2000 costs 1.4 B $ amounting to 200 mn a pc. But 14 for 1.4 Bm* since 300 mn goes for PIA) sounds a bit too cheap for a AWAC.
Frankly its either 7 AEWACS or cost is much more ( mayb 3 bn dollars).

White noise for now... If you know what i mean

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11-14-2004, 17:09 PM	#2 (permalink)
ajaybhutani *Senior Contributor* Join Date: 09-05-04 Posts: 2,100	[quote]In an Oct. 29 interview from Kuala Lumpur, Prasun Sengupta estimated the aircraft would cost up to $1.7 billion, the bulk of which would be funded by Saudi Arabia in exchange for in-country training of Saudi crews by Pakistani Air Force personnel. The prospective deal, which he characterized as in advanced stages of negotiation, envisions seven aircraft for Saudi Arabia and seven for Pakistan. Used Saab 2000s would be refurbished with the Ericsson AEW&C system. As part of the package, Pakistan also would receive seven basic Saab 2000s, which would be upgraded for use by its national airline, Pakistan National Airlines, and Saudi Arabia would acquire an additional three or more used Saab 2000s for spare parts, Sengupta said. [quote] i wonder how can they buy 14 AWACS for 1.7 B$. From the discussions on in PDf iteself the cost of SAB200 is 300 mn $ for 7 aircraft and the package for 7 AEWAC with 7 sab2000 costs 1.4 B $ amounting to 200 mn a pc. But 14 for 1.4 Bm* since 300 mn goes for PIA) sounds a bit too cheap for a AWAC. Frankly its either 7 AEWACS or cost is much more ( mayb 3 bn dollars).

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