PDA

View Full Version : UAE Declines France's Rafale Deal


ORAC
16th Nov 2011, 13:28
Defense News: UAE Declines France's Rafale Deal (http://www.defensenews.com/story.php?i=8271432&c=ASI&s=AIR)

DUBAI, United Arab Emirates - The industrial terms in the French effort to sell the Dassault Rafale fighter to the United Arab Emirates were "unworkable," Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed, deputy supreme commander of the armed forces, said Nov. 16.

"Thanks to President Sarkozy, France could not have done more diplomatically or politically to secure the Rafale deal," bin Zayed said, according to WAM, the Emirati official news agency. "Regrettably Dassault seem unaware that all the diplomatic and political will in the world cannot overcome uncompetitive and unworkable commercial terms," he said. Dassault had been "at the forefront of our considerations," he added.

Dassault officials were not immediately available for comment.

France has been negotiating to sell 60 Rafales to the United Arab Emirates to replace its fleet of 60 Mirage 2000-9 fighters. The United Arab Emirates has been seen as the best prospect for the first export order for the fighter jet. A Rafale order, however, was seen by the Emirati authorities as a political favor requested by Paris for domestic reasons. "This is not a requirement," a Gulf source familiar with the talks said. "It was pushed as a political purchase."

Emirati authorities are unhappy with what they see as French industry's failure to "understand the political nature" of the deal. That has led deep dissatisfaction in the United Arab Emirates with the entire package, including the terms, specifications and price. "The price is ridiculous," the source said.

The United Arab Emirates has responded by issuing a request for proposal to Britain for the Typhoon, following an Oct. 17 briefing on the combat aircraft built by the Eurofighter consortium. Emirati officials had already requested information for the Boeing F-15 and F-18, as well as the Lockheed Martin F-16

"This is now an open competition," the Gulf source said. "It is going to take months to go through the offers and compare the data."

No deal is expected in the near future.

There was a sense of unease among Emirati officials over the French "mechanism," seen as lacking coordination between the various parts of the offer.

Sarkozy's October appointment of foreign minister Alain Juppé as lead in the Rafale talks was seen by Emirati officials as a sign of distress and belated realization of a need to bring order to the fighter negotiations. French media have reported that Sarkozy had been determined to secure a first export order for the Rafale, widely seen as a flagship of French aeronautical excellence and a much needed foreign revenue earner for the public purse.

sitigeltfel
16th Nov 2011, 13:48
There was a sense of unease among Emirati officials over the French "mechanism," seen as lacking coordination between the various parts of the offer.

Is "mechanism" a euphemism for baksheesh?

LowObservable
16th Nov 2011, 14:21
Comment dit-on en francais, "f***ety-f***"?

green granite
16th Nov 2011, 15:27
The United Arab Emirates has responded by issuing a request for proposal to Britain for the Typhoon, following an Oct. 17 briefing on the combat aircraft built by the Eurofighter consortium. Emirati officials had already requested information for the Boeing F-15 and F-18, as well as the Lockheed Martin F-16


To see who will pay the most 'commission'? :E

The Helpful Stacker
16th Nov 2011, 15:42
To see who will pay the most 'commission'?

Surely a deal on the Typhoon has got to be on the cards then, given the history of one of the partner companies in that part of the world? ;)

giblets
16th Nov 2011, 16:50
AIRSHOW-UPDATE 1-Rafale warplane deal stalled, UAE says proposal 'unworkable' | Reuters (http://www.reuters.com/article/2011/11/16/uae-warplanes-idUSL5E7MG2H620111116)

A source close to the deal blamed the current impasse on the "arrogance" of Dassault, despite French military officials saying they were confident about securing a deal and hopes of finalising the sale at the Dubai Air Show.

"There is a shared frustration in both the UAE and French leaderships at the apparent arrogance of Dassault," the source said.

"Rather than using the strength of the bilateral relationship to close the deal out they are attempting to use it to hold out on pricing and a deal structure that hasn't changed in more than a year and that has been significantly bettered by all competitors."

Mend em
16th Nov 2011, 18:16
Don't forget, according to US law its only US companies that pay commission, everyone else pays bribes

LowObservable
17th Nov 2011, 11:55
What the US does, indeed, is to pay a commission to an independent local agent while telling them very firmly that under no account are they to pass any of that money to government officials, because that is totally illegal and we don't do that sort of thing, unlike those dirty pinko furrin SOBs. Just make sure we win.

MacAir salesman Tom Gunn writes in his book "Gunn Sights" about being approached by a former ambassador to the US who wanted to be the company's consultant/agent in a competition in his home country. The guy wanted seven per cent of the deal - Gunn did not hire him, but not because of that. Gunn turned him down because he started talking about who he was going to pass the money to.

The FCPA forbids "excessive" consultancy payments, and some guidelines suggest steering clear of "success fees", but they are not actually banned. Even three or five per cent of a big military sale is a whole lot of money.

Meanwhile, as long as your local consultant/agent is assuring you that he's making legitimate use of his payments and expenses, and your own lawyers are making sure that you look like you're checking on him, you stay FCPA-clean.

Green Flash
17th Nov 2011, 12:36
As long as you have someone covering your 6-o-clock to ensure the 13th Commandment stays intact then crack on for a bung-tastic day!:E