Military AircrewA forum for the professionals who fly the non-civilian hardware, and the backroom boys and girls without whom nothing would leave the ground. Army, Navy and Airforces of the World, all equally welcome here.
Jan. 31 (Bloomberg) -- Dassault Aviation SA rose the most in more than 22 years, after a person familiar with the matter said the company emerged as the lowest bidder to supply 126 fighter jets to the Indian Air Force.
Dassault shares rose more than 22 percent in Paris and traded 20 percent higher at 735 euros as of 3 p.m. A majority of the stock is held by the Dassault family, while European Aerospace, Defense & Space Co., the co-producer of the competing Typhoon, owns 46 percent.
“The announcement comes after a very high-level, equitable and transparent competition,” French President Nicolas Sarkozy said in an e-mailed statement. “The Rafale was selected thanks to its cost effectiveness over the lifetime of the plane.”
For Dassault Aviation, the sale to India of its Rafale combat jet, which hasn’t won a single export order after 11 years of flying for the French military, would be mark a major victory. Over the last decade, Dassault has consistently lost out in competitions in countries including Singapore, South Korea, Morocco and Switzerland.
India’s Defense Ministry will begin exclusive negotiations with Dassault within 10 to 15 days, the person told reporters in New Delhi today, speaking on condition of anonymity because the proceedings aren’t public. Talks will likely last for weeks, pushing the signing of a contract beyond the March 31 end of India’s fiscal year, he said.
Indian law requires the government to negotiate a contract with the lowest-bidding vendor. Dassault is competing in the $11 billion contest against the Typhoon, the Eurofighter plane built by BAE Systems Plc, European Aeronautic, Defence & Space Co. and Italy’s Finmeccanica Spa.
Dassault is still in the running to win a contest in the United Arab Emirates, and remains in talks with Brazil about a contract.
Although it has been producing a plane a month for the French military, without export orders to help pay the cost of production, its funding burden falls entirely on France.
India shortlisted the Rafale and Eurofighter in April, when it rejected bids from U.S. manufacturers Lockheed Martin Corp. and Boeing Co., as well as Saab AB and OAO United Aircraft Corp. The country is buying the fighters to replace an aging fleet of Russian MiG-21s and Dassault Mirage 2000s.
Dassault had no immediate comment. The company recently lost a contest to Saab’s Gripen in Switzerland, and Dassault has since sought to get back into the contest by offering a new commercial offer that includes fewer and modified Rafale jets.
Russia, the US (2 times with the F16 and F18), EU, and France were fighting to get a big fighter airplane contract in India (more than 100 airplanes). It seems France won. That's a 10 billion contract...
The Dassault Rafale (French pronunciation: [ʁafal], squall) is a French twin-engine delta-wing multi-role jet fighter aircraft designed and built by Dassault Aviation. It is called an "omnirole" fighter by its manufacturer.
Introduced in 2000, the Rafale is being produced both for land-based use with the French Air Force and for carrier-based operations with the French Navy. It has also been marketed for export to several countries, including a $10.4 billion order from Indian Air Force.
Like it was supposed to be a big surprise here... India has already chose in the past and is already equipped today with french fighters, the older version (mirage 2000) of the rafale, they update their fleet with french fighters (rafale), what makes sense. In fact nothing new.
What is new is the fact this is one of the world's biggest defence deals. 10 billions.
The Bloomberg article is full of mistakes : Biggest one is that the Rafale is not due to replace the Mirage 2000 - even if it's part of the anglo-saxon strategy to say "ageing Mirage 2000" A very big contract of modernisation has been signed with french industry a couple of months ago for those Mirage 2000, new avionics - and new missiles , more than 500 MICA all-sectors, multi-sensors. The french avionics companies Thales and Sagem did the modernisation of the indian Jaguars in the 80s, and also of the Sukkhoi 30.... Before the Mirage 2000 deal of the end of the 80s, there had been the big contract of the Jaguar, mostly with the british (as Dassault never acknowledged paternity of that aircraft, which was originally a Breguet product...) Before, 110 Mystère IV had been bought (sorry for those who don"t know what it is - yes, it's another Dassault aircraft) and they fought gallantly during a couple of wars with sub-continent neighbours... And even before, 104 Dassault Ouragan (sorry for the sam eoneshad been bought at the beginning of the 50s...... and also 30 Breguet Alizé for the indian Navy carriers in the 60s... The Rafale C (Air Force) and M (Navy, from french aircraft carrier) have been operating for a couple of years over Afghanistan, and more recently over Lybia. A small Rafale squadron is based by the Armée de l'air in UAE.
Should've let BAE take the lead sales role rather than EADS. BAE have a better palm-greasing technique, they would have won the contract, although they would have had to pay a few commission fees somewhere