India to buy six Boeing 767 tanker aircraft from Israel’s IAI in $900 million deal
October 29, 2025
India is poised to finalise a contract worth nearly INR 80 billion (about $900 million) with Israel Aircraft Industries (IAI) for six aerial refuelling aircraft — a long-delayed acquisition that will significantly extend the operational reach of the Indian Air Force (IAF).
The deal, expected to be signed before the end of the current financial year (March 31 2026), will see IAI’s Bedek Aviation Group purchase six used Boeing 767 passenger jets and convert them into Multi-Mission Tanker Transport (MMTT) platforms.
Once delivered, these aircraft will provide mid-air refuelling support to frontline fighters such as the Rafale and Su-30MKI, both of which rely heavily on tanker support to sustain long-range operations.
“Since India already has a long-standing working relationship with Israel Aircraft Industries, it makes the transition smoother and the oversight process simpler,” a senior Defence Ministry official told AGN.
Why the Indian Air Force needs new aerial refuelling aircraft
India currently operates six Russian-origin Ilyushin Il-78MKI tankers based in Agra, near the national capital, New Delhi.
These aircraft have served as the backbone of India’s aerial refuelling fleet for over two decades, but are increasingly plagued by maintenance and serviceability issues.
At times, more than half of the fleet has been unavailable for operations, forcing the IAF to wet-lease refuellers from foreign providers as a stopgap measure.
A recent Comptroller and Auditor General (CAG) audit of the Russian-origin fleet found that several key issues had severely affected availability:
- Runways were too short for the Il-78’s heavy take-off weight
- Refuelling pods suffered frequent failures
- Airworthiness was inconsistent
- There were insufficient hangars and fuelling infrastructure
- Dedicated refuelling corridors were lacking
The six Il-78s were procured in 2003-04 at roughly INR 1 billion ($11 million) each.
Earlier this year, the Defence Ministry also contracted US-based Metrea Management to provide leased refuelling aircraft — an unusual but necessary move to fill a capability gap that had persisted for more than 15 years.
“The Air Force has been waiting a very long time for this acquisition,” said a senior air staff officer. “With expanding fighter operations and new platforms entering service, we simply cannot rely on an ageing Soviet-era fleet anymore.”
IAI is the only supplier left standing for India’s tanker contract
The acquisition process, launched several years ago, originally drew interest from both the Airbus A330 MRTT and the Russian Il-78, but IAI ultimately emerged as the sole qualified vendor.
The company met all technical and industrial-participation requirements, including the stipulation that up to 30 per cent of the aircraft content must be ‘Made in India’.
IAI’s Multi-Mission Tanker Transport is based on the proven Boeing 767 platform and has already been adopted by several air forces worldwide.
The aircraft is fully compliant with NATO air-to-air refuelling standards and supports both boom and hose-and-drogue systems, making it compatible with nearly all Western and Russian-origin fighters in the IAF inventory.
The conversion includes:
- Structural reinforcement of the airframe
- Installation of fly-by-wire refuelling booms
- Advanced electro-optical systems for day- and night-time operations
IAI also offers configurations for cargo, passenger, and ISR (intelligence, surveillance and reconnaissance) roles, giving the MMTT multi-role flexibility beyond refuelling.
With over 40 years of experience in aerial refuelling conversions, IAI has delivered modified aircraft to more than a dozen customers, including the Israeli Air Force. Its systems are known for reliability, quick conversion timelines, and long service lives.
Beyond this contract, IAI remains one of India’s most trusted defence partners. It co-developed the MRSAM (Medium Range Surface-to-Air Missile) system with DRDO, BEL, and BDL; partnered with Adani Defence on the Agnikaa loitering munition; and provides key technologies for UAVs, electronic warfare, and radar systems used by India’s armed forces.
“IAI’s long presence in India and its proven willingness to co-develop systems locally have made it a natural fit,” said a senior defence analyst. “This isn’t a one-off purchase — it’s part of a deeper strategic partnership.”
Talks underway to establish MRO and local assembly for IAF’s new refuelling fleet
Once the agreement is finalised, the aircraft will undergo conversion in Israel, followed by integration and acceptance testing by the IAF.
Discussions are also underway to include Indian components and assembly work in later phases, potentially paving the way for local maintenance, repair, and overhaul (MRO) centres to support the fleet over its lifecycle.
Featured image: IAI
