http://g2globalsolutions.com/review/?p=31772009: the year of almost
It was also the year of almost for the Dassault Rafale. Almost there, not quite yet. That Rafale will eventually win export contracts is near certainty; the extent and size of those contracts remain in question at this point. Nothing is certain, and Rafale might still experience unpleasant surprises although Brazil has expressed its intentions to procure the aircraft for its FX-2 program.
While Rafale is the logical choice for Brazil on many levels, is also a risk for the Brazilian Air Force. Can the French deliver on the promises? Can Rafale become the force multiplier it has demonstrated significant potential for? We believe so, as there are many uncertainties about the two other competitors (Gripen and F-18E) in competition for this program. Surprisingly, Rafale might appear to be the lower risk proposition for Brazil at this juncture.
The Boeing F-18E is a very capable and mature weapon system, superior to its competitors in many critical areas, but there are too many issues pertaining to export control and technology transfers. These issues are paramount, and risk compromising the aircraft’s chances unless they can be addressed to the satisfaction of the Brazilian Air Force.
As far as Saab is concerned, Gripen is a strong, capable and, highly affordable system but Gripen NG remains a paper airplane that has significant ways to go. The fact that Gripen NG requires development may also prove valuable to Brazil, as it would allow Brazilian industry to participate closely in the development and manufacturing of this aircraft, perhaps…
Dassault reduced Rafale cost by 40% for Brazil, with unit price at 50 million € compared to original 96mRafale : Dassault aurait réduit de 40 % le prix de vente au Brésil
LE MONDE | 05.01.10 | 18h18
Le constructeur aéronautique Dassault, en compétition pour fournir 36 avions de chasse Rafale au Brésil, a dû diminuer son prix de vente de 40 % pour augmenter ses chances, affirme, vendredi 6 novembre, Libération. Dassault se serait engagé à aligner le prix sur celui payé par l'armée française, soit 50 millions d'euros l'unité, contre une offre originelle de 96 millions.
Who will burden the difference? Hardly imaginable that Dassault will do that on its own.
French government - it is after all vital to French aerospace. At the very least, the French have grasped the principle that to be a top player costs. In that, I salute them.
The other bad thing in this is that, if Brazil ends up buying Rafale @ 50m, good luck selling to the EAU or Swiss @ 96m...
This price for only 36 is simply not realistic, what would the 60 Rafales for UAE cost then, not to forget 126 for India?
Desperate Dassault ? Not really
Falcon sales represent > 60% of Dassault Aviation turnover and D.A. is world leader on the top end business jet market.
More important: Dassault Systemes , now almost as big as Dassault Aviation, is world leader in 3D/PLM (Product Lifecycle management ) software market and is still growing fast.
2009 was a bad year for everyone in the aerospace industry but Dassault is a very rich firm : in 2009, despite the crisis, D.A. bought cash 26% of the biggest european defense electronic group (Thales) and D.S bought cash a part of IBM Corp.’s sales and customer support unit.
And after these acquisitions, Dassault consolidated available cash still totaled EUR 1.69 billion.
Dassault is not desperate , Dassault never lost money on any contracts and Dassault won't lost money in Brazil whatever the final choice...
Future Rafales export sales are very important for the future of France's (and Europe) aerospace and defence industry ... but Dassault is not desperate .