Indian Ambassador Hopes FAA Restores Top Air-Safety Rating: WSJ

The Wall Street Journal
By Doug Cameron

Feb. 28, 2014 5:58 p.m. ET

CHICAGO—India is hopeful U.S. regulators will reinstate its top-tier aviation safety rating this year following a downgrade that placed restrictions on its fast-growing airlines, the country's new ambassador to the U.S. said Friday.

Ambassador S. Jaishankar also said work is continuing on a new security agreement that could allow Indian companies to jointly produce military equipment with U.S. partners. The U.S. last year overtook Russia as India's largest source of arms imports by value.

The Federal Aviation Administration in January downgraded India's aviation-safety ranking, citing inadequate oversight by local regulators. Though other countries have taken several years to regain the coveted Category 1 status, Mr. Jaishankar said India's return could be swifter.

"I'd hope so," he said, when asked if the FAA could upgrade India from its new Category 2 status this year. Speaking after an event in Chicago, Mr. Jaishankar acknowledged it was difficult to determine a timetable as discussions continue between regulators from the two countries. The FAA didn't immediately respond to a request for comment.

Mr. Jaishankar said in his speech that the FAA downgrade was among a list of issues that had "bogged down" U.S.-India relations in recent months, citing also a ban on some pharmaceutical imports and the recent complaint filed by the U.S. against India with the World Trade Organization over solar-power equipment.

"Such headlines are not representative of the totality of our ties," he said, citing military equipment and future gas exports from the U.S. as two examples of evolving economic ties.

India is the world's largest arms importer, rebuilding the many antiquated parts of its military in response to long-standing tensions with Pakistan and to China's military expansion.

U.S. defense exports to India have climbed eightfold since 2009 and reached $1.9 billion last year, according to IHS Jane's, an industry consultant, and the countries signed a joint declaration on defense cooperation in September.

Boeing Co. has driven the expansion with sales of helicopters and surveillance jets, followed by Lockheed Martin Corp, which has found a ready market for its military transport aircraft.

The widening defense trade balance has seen Indian and U.S. officials open talks for the co-production or co-development of weapons systems, though no deal has been reached.

Mr. Jaishankar said talks continued about "more effective" technology transfer and on potential cooperation in developing the next generation of the Javelin antitank missile, which is currently produced by a joint venture between Lockheed and Raytheon Co.

Source:  http://online.wsj.com