Emerging Market For Secondhand Aircraft Carriers
February 29, 2008India is torn between Moscow and Washington in a deal to buy secondhand aircraft carrier.
In 2004, Moscow and New Delhi agreed on $1.5 billion deal to refurbish and modify Admiral Gorshkov, the former Soviet aircraft carrier, with expected delivery in 2008. Delays and budget overruns pushed the delivery to 2013. Moscow is pressing New Delhi for additional $1.2 billion on top of the amount agreed. Gross technical and financial screw-ups in refurbishing the Admiral Gorshkov will cost the Indian side dearly both in money and delay terms.
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Here comes Washington with an offer India can’t refuse. Washington offers to sell soon-to-be-decommissioned U.S.S. Kitty Hawk with delivery in 2012 and sweetens the deal with a fighter jet contract.
If New Delhi will prefer U.S.S. Kitty Hawk over the Admiral Gorshkov, the Russians may be tempted to sell the hot secondhand merchandise to Beijing. There have been persistent reports that Beijing intends to acquire an aircraft carrier to achieve an edge in naval capability in high seas.
Whatever option India chooses, it comes with steep price tag and the whole lot of strings attached.
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