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Saturday, August 01, 2015

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

P-8I NeptuneBoeing 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.

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