Fighter deals intensify global aerial arms race

New York: Big decisions on warplane purchases by Japan and India have intensified competition in the multi-billion-dollar global market, with Western defence firms scrambling for orders in Asia and the Middle East as their home-country budgets shrivel.

Growing international unease over China's military build-up and ongoing tensions between Iran and Western allies in the Gulf, coupled with the deep pockets of nations basking in high commodity prices, have sparked a surge of interest in air power.

"There is a strong emphasis on... combat aircraft and things that belong to them: missiles, bombs, support aircraft, airborne early warning systems, air tankers and that kind of stuff," said Siemon Wezeman, senior researcher on arms transfers at the Stockholm International Peace Research Institute.

Lockheed Martin, the Pentagon's biggest arms contractor, and France's Dassault Aviation are the major winners in a pair of widely watched procurement decisions in the past month, dealing a blow to competitors such as the four-nation Eurofighter Typhoon and Boeing Co's F/A-18 Super Hornet, defence industry experts say.

Lockheed was buoyed by Japan's $7 billion (Dh25.7 billion) decision to buy 42 F-35 stealth fighter jets in December, providing a shot in the arm for a project under fire over costs and struggling to hold together a coalition of foreign partners.

Japan's selection means South Korea is very likely to follow suit, analysts said. Seoul last week invited Lockheed, Eurofighter and Boeing to bid in a $7 billion contest for what is expected to be an order for 60 advanced fighter jets.

Companies are also eyeing opportunities in Mal-aysia, Singapore, Australia, the United Arab Emirates and Kuwait. India rescued French hopes of an elusive first export deal for its front-line jet by agreeing last week to enter exclusive negotiations to buy 126 Dassault-built Rafales.