sancho
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Regarding the ongoing HS 748 replacement. Judging by the following comparison the C295 seems to be the clearly superior all-round performer over the C-27J. I suppose it all comes down to what exactly the IAF is looking for though:
http://www.c295.ca/wp-content/uploads/C295-Comparison-Chartmay26.pdf
The problem is, that manufacturers often make comparisons with specific requirements only, that let their products look better and they won't show the downsides of their product of course:
As you can see, the cargo hold of the C295 is much smaller than of than of the C27 in height and width, which allows the latter to carry bigger vehicles or helicopters too. That makes the C27 useful in comparable roles, to the medium class tactical aircrafts like the C130 or MTA, but with less payload of course. However, for smaller utility roles like IAF did with the Avros or AN 32s, the C295 will be cheaper and more cost-effective to operate, not to forget that they procure the C130Js and MTAs for the tactical roles anyway.
Another point is, that the C295 is already available in different versions, which would be useful for different forces and that would make a licence production in higher numbers more worth it as I mentioned here:
http://www.defence.pk/forums/indian...ocks-indian-transport-tender.html#post3061862