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It may be remembered that the IAF had stuck its neck out to push through a deal with EADS the last time too, but in the absence of a life-cycle cost template to analyse total costs, the Finance Ministry put its foot down. EADS will be cautious about being declared the winner in the overall competition, though contract negotiations will still need to go through before a contract can be signed. The win is also important for EADS, which has suffered a string of setbacks in India over the last five years—the abortion of the 197 reconnaissance and surveillance helicopter (RSH) and flight refuelling aircraft tenders when EADS products had emerged winners—and the defeat of the Eurofighter in MMRCA fighter tender to rival Dassault earlier this year.
The A330 MRTT was put through trials in November last year in India, where it demonstrated in-flight refuelling of IAF Su-30MKI and Jaguar jets. According to Airbus Military, "The A330 MRTT is the most capable tanker/ transporter currently available. It is the only aircraft able to perform simultaneously three different types of missions: aerial refuelling (tanker role), passenger and/or freight transport, and/or medical evacuation (MEDEVAC). Also, its tank capacity is sufficient to supply the required fuel quantities without the need for any additional reservoirs, nor major structural modifications and it is able to carry more passengers and more freight than any of its competitors."
The deal is close to $1.35 billion.