• Turkish defense industry divided on procurement: Turkey move to increase the AEW&C purchase to seven aircraft by means of reduction of price by the competition (March 10)

As there has been a certain level of discontent among experts in the defense industry who seek both local and international competition in defense industry projects. Turkey's tender for the purchase of seven AEW&C aircraft has led to reductions in price by the competing companies since it was opened up to competition.

The two US companies competing in the AEW&C project have further reduced their prices, which had earlier ranged from between $1.5 to 2 billion, to under $1 billion. This has also prompted the SSM to procure seven instead of four AEW&C. Last April the SSM short-listed two AEW&C systems: one based on a Boeing 737-700 (with some -800 wing configurations) platform and the other on an Airbus A310 with a Raytheon-Elta Phalcon radar system. Due to delays the SSM now plans to make its final selection in early April instead of early this month.

The SSM move to increase the AEW&C purchase to seven aircraft came following a decision by the Treasury that it would guarantee the repayment of the principal and interest of a US government credit earmarked for Turkey's AEW&C purchase. The Treasury allocated $1.5 billion to the SSM for the purchase.

Local industry sources suggest that Turkey favors the Boeing proposal following the Australian government's selection last July of seven Boeing 737-700/800 aircraft equipped with Northrop Grumman's Multi-role Electronically-Scanned-Array (MESA) radar. The US Congress, however, has yet to decide whether to grant a license to export the MESA system to Turkey. (Turkish Daily News, Lale Sariibrahimoglu)