India chooses the Rafale

[james84]

It looks like we will have something to keep our repainters busy!
I ofund an article in Italian, I'll provide a translation later.

[maddog65]

View Article Here

By Jay Menon jaymenon68@gmail.com, Robert Wall wall@aviationweek.com
NEW DELHI, LONDON

The Indian government has named Dassault Aviation’s Rafale offering ahead of the Eurofighter Typhoon as the “lowest bidder” in the competition to supply at least 126 medium multi-role combat aircraft (MMRCA) to the Indian air force, Aviation Week has learned.

The development effectively means Rafale has won the $11 billion competition unless contractual talks now due to unfold in the coming months derail and prevent a deal from being signed. Industrial offset and other details still need to be worked out.

“It’s a long process and [the deal] is not expected to be signed in the current financial year,” Defense Minister A. K. Antony said.

The first 18 aircraft will be bought off the shelf, with the rest to be made in partnership with an Indian company. Indian plans already call for more than 126 fighters to be acquired.

“The companies found out this afternoon,” a British High Commission source told Aviation Week. “India’s Ministry of External Affairs briefed the four embassies immediately afterwards. The countries were told that this was a decision taken on the basis of cost for this contract. Nothing further should be read into this regarding bilateral relationships.”

Securing the contract in India would be a huge win for Rafale, representing the first export order for the type. Rafale is the only current-generation western fighter not to have secured an export order so far.

MBDA also is a big industrial winner, since it will provide much of the weapons package for the Indian Rafales.

Another big winner, at least politically, if the deal is cemented would be French president Nicolas Sarkozy, who has made securing a Rafale order a government priority. Sarkozy faces reelection in April/May and is trailing in the polls.

It is the second big setback for Eurofighter in as many months, having lost to the F-35 in Japan last month. EADS led the campaign in India — the four-country consortium split who leads campaigns overseas.

The Boeing F/A-18E/F, Lockheed Martin F-16, Saab Gripen and MiG-35 were eliminated from the contest first, last year. India’s government opened the Eurofighter and Rafale bids on Nov. 4 and had since been studying details before the Jan. 31 announcement.

For Rafale, the deal could help it bolster its case in other export campaigns, including the United Arab Emirates and Brazil. For Eurofighter, attention now turns to trying to build its backlog through other contracts. High on the agenda is finalizing terms with Saudi Arabia for 48 more Typhoons, selling a dozen fighters to Oman, and the fighter competition in Malaysia.

[CelticWarrior]

Time to stop giving India millions of 'development' funding, I think. A country with a growing and thriving economy, with nuclear power doesn't need hundreds of millions of UK aid when we can't afford to keep our own country funded properly.

Turn off the tap, the water's running out.

[MIKE JG]

Intersting.... Been waiting for this decision. I'm sure France is happy today.

[Firebird]

This has got inducement payments written all over this decision.

[shaggy22]

Hardly surprising when you see what they already have in their inventory, Mir 2000's, Jags.

[sprocky]

This has got inducement payments written all over this decision.

English is not my native language: you are talking about bribes? If so, my opinion is: you are right...

[Firebird]

You can never fool a German. You are absolutely right, Jan. I believe that incentives were used here.

[sprocky]

Incentives... yeah, you can use that word, too

Note to myself: time to book a biz trip to India again. Temperature is much more comfortable there these days. (currently -12°C vs. +26°C)

[maddog65]

http://www.flightglobal.com/news/articl ... on-367642/

Hard negotiations lie ahead for Dassault after Rafale's Indian selection 
Print By: Greg Waldron Singapore 10:45 1 Feb 2012
Source: Flight International

With its attainment of "L1 vendor" status in India's medium multi-role combat aircraft (MMRCA) contest for 126 fighters, the Dassault Rafale is one step closer to securing its first overseas deal, but the road to a final agreement is still long.

Dassault on 31 January confirmed that the Rafale had been selected ahead of the Eurofighter Typhoon. The Indian defence ministry, however, told Flightglobal that it has yet to make a formal announcement of the company's L1 status, and was uncertain about the timeframe for this. "Nothing is official yet," a defence ministry source said.

Assuming the formal granting of L1 status, final negotiations between Dassault and the Indian government's Contract Negotiation Committee (CNC) could take between six months and one year, said an industry source familiar with Indian defence procurement policy.

The process can be a tortuous one. According to defence ministry tender guidelines, a CNC should be comprised of individuals representing the stakeholders involved in an acquisition. In the case of MMRCA, the source believes the Indian air force, Hindustan Aeronautics (HAL) and other key parties will be represented.

The CNC will conduct a two-stage negotiation. The first will deal with details such as contract language and deliverables, and the second with pricing.

On clearing the CNC, the contract will need the approval of the Defence Acquisition Council and India's finance ministry. Finally, the package will go before India's Cabinet Committee on Security, which will give the final sign-off.

"The L1 price is not necessarily the price you will win with," said the source. "There will be multiple stakeholders involved in the decision and negotiations."

Industry observers estimate the value of the MMRCA deal at between $10 billion and $20 billion - India's largest foreign arms purchase. Under the terms of the award, 18 aircraft will be delivered in a flyaway condition, with 108 to be built under licence by HAL.

Although the Rafale has struggled in late-stage negotiations in Brazil and the United Arab Emirates, recent French wins on the subcontinent bode well for the successful conclusion of Dassault's MMRCA campaign.

In July 2011, Dassault won a long-awaited $2.2 billion deal to upgrade the Indian air force's Mirage 2000H fighters to the 2000-9 standard. In early January, European firm MBDA confirmed a deal to equip the modified aircraft with Mica air-to-air missiles, although an official contract has yet to be signed.

[MIKE JG]

Wonder which one Brazil is going to chose now??

[sprocky]

Hard negotiations lie ahead for Dassault after Rafale's Indian selection 

Negotiations, nice word. Reminds me of my first "negotiations" with an Indian company. It's a bit like this: http://www.youtube.com/watch?v=3n3LL338aGA

[delbydoo]

I've read that we are sending £280 million over the next four years to a country which has more billionaires than the UK and its own space industry (let's face it, ours is practically non-existent) meanwhile France sent just £18 million in 2009 - something awfully smelly here, and I don't just mean the frogs-leg curry!!

[MIKE JG]

Well India just broke out its checkbook again, this time for 10 C-17s from Boeing:
http://www.flightglobal.com/news/articl ... 7s-367749/