From Aviation Week's ARES Blog:

 

A Real Win For Rafale

Posted by Robert Wall at 9/8/2009 1:57 AM CDT

 

There will be some that say Brazil only is buying the 36 Dassault Rafale strike fighters because of France’s agreement to help develop and maybe buy ten KC-390 airlifters, or transfer extensive nuclear submarine technology, or whatever other reasons, but reality is that, for once, the French sales team orchestrated the campaign rather flawlessly.

 

It is, without doubt, a huge win for Rafale. Not only is Brazil the first export customer for Rafale, it is a sizeable order and it came in a real competition. Libya and the United Arab Emirates – other countries that are looking at the aircraft – would execute the purchase as a sole source deal.

 

What’s more, it’s a big win for the French government, which several years ago saw its success in export sales fall. Having a good relationship with Paris was increasingly less important in the global political environment, so defense exports were slipping. The government launched a massive effort to become more supportive of industry. And, French president Nicolas Sarkozy has been aggressive – some may say shameless – in acting as the chief salesman for the country’s aerospace and defense industry.

 

For France, the Rafale export is not just important as a matter of prestige and influence, but also because Paris wants to reduce the rate at which it is taking the fighters because of budget pressures. With exports, it can do so without Dassault being forced below the Rafale production line's minimum sustainment rate.

 

I just got back from Brazil and one thing all industry officials there were talking about was how professionally they felt the competition was being run. The F-X2 deal was announced a bit later than first planned – to coincide with Brazil’s independence day which Sarkozy attended (Brazil’s president Luiz Inacio Lula da Silva was in Paris for July 14 this year), but overall, both schedule and process were executed to plan. That, too, speaks for Rafale having won as fair-and-square as any of these deals are ever won.

 

The French win is a setback for Saab’s Gripen and Boeing’s F/A-18E/F, although for some time it seemed the French were ahead. The single-engined Gripen might not have appealed to a country with the vast Amazonian region, and Washington, right now, does not appear to have worked the relationship with Brasilia as well as Paris did.

 

In announcing the deal, Brazil’s president Lula said that “it is the consolidation of a strategic partnership.”

From Flight Global

 

DATE: 04/02/10

SOURCE: Flight International

 

UPDATED: Brazil plays down reports of Rafale announcement

 

Brazil's defence ministry has denied suggestions that it will soon make an announcement confirming the selection of Dassault's Rafale to meet its air force's 36-aircraft F-X2 fighter requirement.

 

Sources in Brasilia had indicated that a final decision was made by Brazilian president Luiz Inácio Lula da Silva and defence minister Nelson Jobim following meetings held with Dassault and French government representatives on 30 January, but the defence ministry on 4 February issued a denial.

 

Local reports the same day had suggested that the meetings had led to a substantial cost reduction, and claimed the package's value had been cut from $8.2 billion to around $6.2 billion. Price negotiations have been seen as the major obstacle to a Rafale victory since da Silva prematurely announced the type's selection with his French counterpart Nicolas Sarkozy last September.

 

Da Silva and Jobim's oft-stated preference stems in part from their desire to further a strategic partnership agreed with France last year, and to the perceived difficulties with acquiring US-manufactured equipment.

 

The latter concern was evidenced in 2006, when Washington vetoed the planned sale of Embraer EMB-314 Super Tucano turboprop trainers to Venezuela. This bolstered fears that the US government could impose future restrictions should the rival Boeing F/A-18E/F Super Hornet or Saab Gripen NG be selected.

 

If approved, a deal with France will lead to the delivery of 28 single-seat Rafale Cs and eight B-model trainers built to Dassault's F3 production standard, plus armaments including MBDA MICA IR/EM and Magic II air-to-air missiles, and Sagem AASM precision-guided bombs.

 

The Rafale's wings would also likely be manufactured in Brazil, along with modules for its Thales RBE2 active electronically scanned array radar.

 

Dassault has not commented on the matter, while the Brazilian air force says it "has not been officially notified of any decision".

 

But confirmation of a deal could spark considerable controversy during a presidential election year, and especially because the air force's year-long evaluation of the candidates placed the Gripen NG first and the Rafale last.

 

A $6.2 billion price tag would also make the Rafale package around 40% more expensive than Saab's final offer, and industry sources say France has offered a far lower technology transfer yield and fewer new jobs than Sweden or the USA.