The US has called off a multi- lateral aerial exercise scheduled in July in which the IAF was supposed to participate with its frontline SU-30MKI combat aircraft.
The US' decision is probably due to the budget cuts imposed by its government on military training, Defence Ministry sources said here.
The IAF, which decided to take part in the exercise once in five years due to budget constraints, was preparing for sending its contingent with senior officers there.
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The high profile "Red Flag" exercise is held at the Nellis Air Force base in Nevada and the IAF had last taken part in it in July 2008.
India was planning to send eight Su-30MKIs along with two C-130 J special operations aircraft, two IL-78 air refuellers as well as an IL-76 transport aircraft for logistics support.