Turkey, Boeing drifting into major rift over spy planes' delay

Turkey and its key weapons supplier Boeing have been unable to resolve for more than six months a dispute over major delays in their $1.6 billion airborne early warning and control (AEW&C) aircraft program, prompting the country's defense procurement agency to seek penalties from the U.S. company.

Boeing and the Undersecretariat for Defense Industries (SSM) in 2002 signed their contract for four aircraft and related systems, under which the first plane should be delivered to the Turkish Air Force later this year. But Boeing first informed Turkey of the expected delays late last summer and subsequent talks have failed to produce a renewed schedule or resolve related disputes.

We are very disappointed by Boeing, said a senior SSM official. He said Turkey would seek financial compensation as specified in the contract, which he said should exceed $100 million.

Boeing officials said they were fully committed to the program and working with Turkish officials for a new production schedule. Turkish defense sources said the first aircraft's delivery would be delayed by at least 18 months and that delays for the other planes were unknown. The delays stem from software production and integration problems on Boeing's side, industry sources say. The contract includes the Turkish Air Force's acquisition of four 737-700 AEW&C aircraft, ground radar and control systems plus other related equipment and services. The planned Turkish AEW&C system is based on Boeing's 737-700 commercial aircraft.

An airborne early warning system is basically a radar system, carried by an aircraft, designed to detect other planes. Used at a high altitude, the radars allow the operators to distinguish between friendly and hostile aircraft hundreds of miles away. AEW&C aircraft are used for defensive and offensive air operations anf the system is used offensively to direct fighters to their target locations and defensively to counter attacks.

The spy plane program is a key part of the Turkish Air Force's modernization plans, and the military is not happy with the delays in acquiring this major surveillance capability, officials said.

Defense sources said Australia's similar AEW&C program with Boeing was also facing delays.

ÜMİT ENGİNSOY - WASHINGTON - Turkish Daily News , LINK

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