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News
The Ministry of Defence has signed a contract for procurement of six Dornier-228 aircraft for the Indian Air Force (IAF) from Hindustan Aeronautics (HAL) at a cost of Rs 667 crore. Dornier-228 is a 19-seater, multi-purpose light transport aircraft. It has been developed specifically for utility and commuter transport, air-taxi operations, coast guard duties and maritime surveillance. It has been in the service of the IAF, the Navy and the Coast Guard for over the last three decades. The present lot of six aircraft will be procured with an upgraded fuel-efficient engine coupled with a five bladed composite propeller.
Views
This order of six Dornier-228 aircraft was expected from IAF as the company’s management also had been discussing about this in quarterly conference calls. Recently, HAL received DGCA approval for Hindustan-228 aircrafts also (civil version of Dornier-228). Post this contract and the recent 70 HTT-40 trainer aircrafts contract, the order backlog is estimated to be ~Rs 91500 crore (3.5x TTM revenues). Moreover, as per the management’s guidance, about Rs 1.5 lakh crore worth of orders in pipeline for the next three to five years (including new aircraft, helicopters, unmanned aerial vehicles, aircraft engines, etc), which gives strong longer-term visibility.