India shrugs off Boeing-Airbus controversy – decides to forge ahead solid relationship with France, a permanent member of UN Security Council
Juhi Singhal
May 8, 2005

India finally took a bold step to side step the Boeing-Airbus minefield. The controversy over the Air India award of $6 Billion has caused a lot of jitter. Indian Government finally decided to force ahead with some solid relationship with France. India needs France’s support for its bid to win a permanent seat in UN Security Council.

Foreign Minister Natwar Singh said a row over Air India's decision to purchase planes from US-based Boeing rather than Europe's Airbus Industrie will not affect India's ties with France.

Singh said he accepted a statement by French ambassador Dominique Girard that Girard had been misquoted by the Indian media, which reported Friday that the envoy had said "some factors other than commercial" influenced the 7 bln usd deal.

The remark was portrayed by the Indian media as a reference to the country's deepening friendship with the US, which lobbied strongly for the contract.

"This is not the kind of language one should use for a friendly country. Such language is not part of diplomatic norms," Singh told the Press Trust of India news agency.

"However, the French ambassador has already said he was misquoted and I hope the matter ends here."

India and France are "mature and friendly countries," Singh added.

Girard declined to comment on the issue Saturday.

Trouble began late last month when Airbus Industrie, which lost Air-India's deal for 50 long-range aircraft to Seattle-based aviation giant Boeing, cried foul.

Airbus, based in Toulouse, France, said it had not been given "fair and equal treatment." Airbus also urged the Indian government to order a new tender.

Singh's comments Saturday came a day after Foreign Secretary Shyam Saran met Girard and expressed objections to his reported remarks.

A foreign ministry statement late Friday quoted the French ambassador as saying he had "merely expressed disappointment and that his remarks had not been correctly quoted."

Nigel Harwood, vice president of Airbus Industrie India, said late Friday the European company had "asked for several opportunities to come and represent our products."

"Unfortunately, those opportunities were not given, which is unusual in itself (along with) ... the fact that we believe that Boeing was given the opportunity," he said.

Earlier this week, Air-India said it would make its "deep unhappiness" known to Airbus for alleging its board had been soft on Boeing when awarding the deal in its favour.

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