Fuel In The Sky: India’s $900 Million Bet On Israeli Aerial Refuelling Tankers

A fighter jet can fly only as far as its fuel allows. Beyond that invisible boundary lies a choice: turn back, or find a way to refuel without touching the ground. For the Indian Air Force (IAF), that choice could become considerably less restrictive if a proposed $905.7 million deal with Israel Aerospace Industries (IAI) goes through.

The agreement envisages converting six pre-owned Boeing 767 passenger aircraft into aerial refuelling tankers, giving India's fighter fleet the ability to remain airborne longer and operate over greater distances, according to the media reports.

More than a procurement exercise, the proposal could reshape how the IAF sustains its combat aircraft, while bringing a substantial share of the conversion work into India's domestic aerospace industry.

Why The Indian Air Force Needs Aerial Refuelling Tankers

In aerial warfare, fuel determines how long a fighter can stay in the air, how far it can travel and how much time it can spend over an operational area. Aerial refuelling changes that calculation. Instead of returning to an airbase when its fuel runs low, a fighter can approach a tanker mid-flight, connect to its refuelling system and replenish its fuel while both aircraft remain airborne.

Notably, this extends mission endurance, reduces the need for repeated landings and allows aircraft to cover longer distances without depending entirely on nearby airbases.

The IAF currently operates six Russian-origin Ilyushin Il-78MKI tanker aircraft, acquired in 2003-04. However, maintaining the ageing fleet has become increasingly difficult.

A 2017 report by the Comptroller and Auditor General (CAG) found that the average serviceability of the Il-78 fleet between 2010-11 and 2015-16 was just 49 per cent, against the IAF's desired level of 70 per cent. The audit also highlighted problems with the serviceability of aerial refuelling pods, spare-parts availability and maintenance support.

More recently, the IAF has explored leasing tankers as an interim arrangement to address its operational requirements.

The proposed Boeing 767-based Multi-Mission Tanker Transport (MMTT) aircraft could provide support to fighters such as the Rafale and Su-30MKI, extending their operational reach and endurance. This matters for a country with geographically extensive airspace and security considerations along two major fronts.

Tankers can also support long-distance deployments, allowing aircraft to operate farther from their home bases and spend more time on station. For the IAF, the proposed acquisition would supplement its existing fleet rather than simply add another category of aircraft.

From Passenger Aircraft To Flying Fuel Stations: How The Conversion Works

The proposed tankers will begin life as pre-owned Boeing 767 passenger aircraft. Under IAI's conversion programme, these commercial airliners will be stripped of their conventional passenger configuration and equipped with specialised military systems.

The process involves structural modifications, the installation of fuel-transfer equipment, military avionics, operator stations and systems that allow the aircraft to conduct refuelling missions. IAI's Bedek Aviation Group, which specialises in aircraft conversion, has developed the MMTT platform for precisely this kind of multi-role operation.

There are two principal ways in which an aerial tanker transfers fuel. In a flying-boom system, an operator controls a telescopic pipe extending from the tanker and guides it into a receptacle on the receiving aircraft.

In the hose-and-drogue system, a flexible hose trails behind the tanker, ending in a basket-like attachment called a drogue. The receiving fighter uses a probe to connect to the basket and draw fuel. IAI's Boeing 767 MMTT can be configured with flying-boom, hose-and-drogue or combined systems, depending on the customer's requirements. Its equipment includes a remote aerial refuelling operator station and a three-dimensional viewing system designed to support operations during the day and at night.

The aircraft's versatility does not end with refuelling. IAI describes the MMTT as a multi-mission platform that can also be configured for cargo transportation, passenger movement, medical evacuation and other specialised roles.

Its passenger seats and cargo equipment can be installed or removed according to operational requirements. This gives the IAF an aircraft that could serve as a transport platform when it is not required for aerial refuelling.

The conversion is therefore not simply about fitting fuel tanks into an old passenger plane; it involves rebuilding the aircraft around a different set of military missions while retaining its underlying airframe.

HAL, Indian Industry To Gain From 30% Local Work

An important component of the proposed agreement is the commitment that at least 30% of the conversion work will be carried out in India. Hindustan Aeronautics Limited (HAL) is expected to be the principal Indian partner, with reports indicating that its responsibilities could include systems integration, wiring and structural modifications.

The arrangement is significant because HAL and IAI had already signed a memorandum of understanding in April 2022 to convert pre-owned civilian aircraft into multi-mission tanker and transport platforms in India. That agreement also envisaged HAL undertaking aircraft life-extension work and maintenance throughout their operational life.

For HAL, the project could create opportunities beyond the initial conversion contract. Its existing aircraft engineering, manufacturing and maintenance capabilities could be extended to specialised tanker systems, while Indian suppliers could potentially participate in electrical systems, wiring, structural components, equipment installation and ground-support infrastructure.

Additionally, IAI has specifically referred to HAL's supply-chain ecosystem and local manpower as part of the partnership. However, the identities and contractual roles of additional Indian suppliers have not yet been publicly established. It would therefore be premature to name companies such as Bharat Electronics Limited or other defence manufacturers as confirmed beneficiaries.

The proposal is valued at approximately $905.7 million, or around Rs 8,000 crore, and IAI has reportedly emerged as the sole qualifying bidder after competing proposals failed to meet the evaluation criteria. Deliveries are projected to take place over the 2028-30 period, subject to the remaining government approvals and contract negotiations.

If finalised, the acquisition could mark an important step in India's effort to modernise its aerial refuelling capability, while giving domestic aerospace companies a larger role in the conversion and maintenance of specialised military aircraft.

For the IAF, the ultimate value of these flying fuel stations will be measured not just in the number of aircraft acquired, but in how much farther and longer its fighters can operate.