NEW DELHI — The Indian air force (IAF) and navy are worried that the decision to temporarily halt all dealings with engine maker Rolls-Royce may affect future operations and acquisitions of several aircraft. India on March 3 put all defense contracts with Rolls-Royce on hold following allegations that the British company paid bribes to win lucrative contracts to supply Hawk advanced trainer jet engines to state-run Hindustan Aeronautics Ltd. (HAL).

Indian low-cost carrier SpiceJet has ordered 42 Boeing 737 MAX 8 aircraft, worth $4.4 billion, as part of its plans to modernize the fleet and find a potential investor. The country’s second-largest low-cost airline by market share expects to start taking delivery of the aircraft from 2018. “We will fund the acquisition through the sale-and-leaseback mode,” says S.L. Narayanan, group chief financial officer at Sun Group, the parent company of SpiceJet, soon after signing the deal at the India Civil Aviation Airshow in the southern city of Hyderabad.

After being stuck in the pipeline for years, India's ambitious initiative to design and develop a regional transport aircraft program is showing some signs of life.