IAI seen winning Indian Air Force tanker contract

Israel Aerospace Industries will convert six Boeing 767 passenger planes to refueling aircraft in a deal worth $906 billion.

Israel Aerospace Industries (IAI) is expected to win a $905.7 billion contract to convert six passenger aircraft to refueling aircraft for the Indian Air Force, according to reports in the Indian press, which state that IAI is the only bidder in the tender.

If a contract is indeed signed, IAI will take six used Boeing 767 aircraft and will convert them on the basis of 30% services and parts being from India. This is part of a strategic move by India to expand its mid-air refueling capability. At present, the Indian Air Force operates six Russian made Ilyushin IL-78 tanker aircraft from the 1980s that are difficult to maintain.

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IAI is a world leader in aircraft conversions, mostly for civilian purposes. In September, the company announced that it had successfully completed the conversion of a Boeing 777 from a passenger airliner to a cargo plane. An aircraft generally ceases to be suitable for transporting passengers after about fifteen years, but it can then be converted to a cargo aircraft serviceable for another fifty years, and the cost of conversion is about 20% less than the cost of a new cargo aircraft.

The Ilyushin tankers currently in service with the Indian Air Force carry a crew of six, and a payload of 100 tonnes. They can transfer fuel at the rate of 2,000 liters per minute, and have a maximum speed of 852 km/h and a range of 7,223 kilometers.

The converted Boeing 767s will require a crew of just three. They can carry 67.1 tonnes and can transfer fuel at a rate of 4,000 liters per minute, double the rate of the Ilyushin. They can reach speeds of 926 km/h and have a range of 12,200 kilometers.

Published by Globes, Israel business news - en.globes.co.il - on November 4, 2025.

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