Filed under: D'Assault, France, HAL, India, Syndicated Industry News
Filed under: D'Assault, Egypt, France, Syndicated Industry News
Filed under: D'Assault, France, HAL, India, Syndicated Industry News
Filed under: BAE Systems, D'Assault, Syndicated Industry News
Filed under: BAE Systems, D'Assault, France, Syndicated Industry News
Dassault Aviation and BAE Systems are working on a collaborative study of a future Joint Unmanned Combat Air System (UCAS) project, to agree on the definition of a joint demonstrator that could fly by the end of this decade. Under the joint program...
A Dassault Aviation production reviewing the long and complex development program of the nEUROn unmanned combat aerial vehicle (UCAV) developed by a pan-European team headed by the French Dassault. The video is brought to you as part of the Paris...
Filed under: Boeing, Business Line, Canada, Companies, Countries, D'Assault, development program, Events, Holland, Lockheed Martin, Military Aviation, production program
After considering the independent auditor’s report submitted to the Ministry of Public Works earlier this year the Conservative government of Canada announced yesterday that they would now look at other aircraft rather then the F-35 to meet the CF-18 replacement requirement. The major reason cited was the much higher estimate of the lifetime cost to procure and operate the advanced aircraft.
The new estimate is almost $46 billion over a projected 42 years. The estimate used to justify the sole source contract for the F-35 was $25 billion for 20 years of operations. The auditor also estimated that due to the cost increases in the F-35 that with the current available funding only 55 aircraft could be bought and not 65.
Canada will now establish a new group to look at aircraft. These could include Boeing (BA) F/A-18 fighters, Eurofighter Typhoons and Dassault Rafale aircraft. The loss of the Canadian buy while a small part of the total planned quantity of over 2,000 F-35 would be a blow to the program and Lockheed Martin (LMT).
The increases in unit cost of the aircraft along with the delays in schedule have caused other partners to reconsider. The Netherlands has also looked at the program’s cost growth over the years as a reason to reconsider. It would allow less aircraft to be purchased to replace their aging F-16 fighters. There is also a requirement to continue using the older aircraft longer then originally planned with associated costs.
Canada could in the end still choose the F-35 but the fact that they are conducting the review is a negative for the overall program.
Filed under: Boeing, Business Line, Companies, D'Assault, development program, IT, logistics
In the past India had tended to buy weapons either from the Soviet Union, Great Britain or domestic sources. There laws on offsets and working with Indian companies limited opportunities for U.S. defense contractors to bid or win work.
In the last several years this has changed as India has turned to Western suppliers. They loosened the laws on offsets and expanded the number of corporations that could team with outside entities to make it possible for a more diverse group of contractors to bid. This led to Boeing (BA) winning contracts for transports as well as maritime patrol aircraft. France’s Dassault Rafael was selected for the new fighter program as well.
India continues to have a whole host of different requirements to modernize its military including one for advanced, programmable radios. One U.S. company that is interested in this contract is Rockwell Collins (ROC). Rockwell is a U.S. manufacturer of aircraft avionics, components and also provides software and other services to the U.S. military and commercial market. They have had a facility in India since 2008. The current focus of there efforts there is utilizing local engineering capability to aid in software development.
They exhibited 2 different solutions at a recent DEFCOM India 2012 show.
Rockwell also just announced that they will team with India conglomerate Tata to bid on this contract. Using an Indian partner will aid in having their bid accepted.
With the expected decline in the U.S. and European defense markets with the budgetary problems needing to be solved overseas contracts will become more of a focus for all defense contractors no matter what the size. Asia is considered the primary market to make up some of the lost business. It will attract more companies like Rockwell in the future.
Filed under: Boeing, Business Line, Companies, Contract Awards, Countries, D'Assault, Events, France, India, Lockheed Martin, MiG, Military Aviation, production program, SAAB
The long running sage of India’s new fighter contract took a major step closer to completion yesterday as the Indian government announced that Dassault Rafale will be considered for the South East Asian country’s Medium Multi-Role Combat Aircraft (MMRCA) contract. In November there had been a decision to start the process to select the final winner of the contract with the choice between the Rafale and the Eurofighter Typhoon.
The MMRCA started over two years ago and companies from across the globe submitted bids. The original proposals came from America’s Lockheed Martin (LMT) and Boeing (BA) along with the two Western European contractors as well as Sweden’s SAAB and Russia’s MiG. A series of trails and evaluations were conducted along with analysis of the proposals and the decision was made in November to eliminate all but Dassault and Eurofighter.
The contract for 126 advanced fighters could be worth well over $10 billion including the cost of support, spares and engineering.
The next few months will see the Indian government negotiating the final terms of the contract including the key provision of offsets. Dassault is proposing to transfer the production capability for the aircraft to India with over 100 of the aircraft being at least partially manufactured and assembled there.
Previously India had relied primarily on British and Russian equipment while trying to invest in an indigenous arms capability. Recently they have realized that in order to gain access to more advanced technology they would need to buy U.S. and European weapons from less traditional suppliers. These have included transports and patrol aircraft from Boeing and Lockheed Martin as well as exploring helicopter and artillery buys from Western Europe.
India has always demanded strict offsets and investment in their economy and have had to adjust these rules to allow companies like Boeing and others from the U.S. to bid. Even so it is good business for a winning bidder to be able to set up production facilities in India as it allows access to that growing market.
The win is significant for Dassault which has struggled to find a buyer beyond the French military and faced issues with keeping their employees busy and revenues up. The Indian contract will aid in both.
Photo from Ronnie Macdonald’s flickr photostream.
Filed under: BAE Systems, Business Line, Companies, Contract Additions, Contract Awards, Countries, D'Assault, Events, India, Lockheed Martin, Military Aviation, production program, Proposal, Raytheon
As the contest to choose India’s newest fighter begins its final stages with a decision expected sometime before the New Year the discussion of ancillary contracts has begun to heat up. The decision is now between two European contenders, France’s Dassault Rafael and the Eurofighter Typhoon, with the U.S begin shut out despite bids from Lockheed Martin (LMT) and Boeing (BA).
Even so there are now reports that the U.S. defense contractor, Raytheon (RTN), is working to make sure that whomever wins the contract for over 100 modern fighters they have the ability to equip it with their missiles.
Due to contraction in the U.S. defense industry Raytheon has become the primary manufacturer of air-to-air missiles as well as many different types of ground attack and strike systems. In this it competes with European companies like Mistral and BAE Systems (BAE:LSE).
Based on reports the company is hoping that India will choose the AIM-120 AMRAAM as a potential air-to-air system. The AMRAAM was developed over twenty years ago as a replacement for the AIM-7 Sparrow radar guided system. Raytheon also makes the AIM-9X infra-red guided system. The AIM-120 has been sold to a variety of customers and has been integrated onto non-U.S. aircraft.
The Massachusetts based company also makes different guided bombs and missiles that India could consider. This includes the Paveway laser guided system or the Joint Stand Off Weapon (JSOW). The U.S. could also sell India the Joint Direct Attack Munition (JDAM) which adds a GPS guidance unit to different sized bombs. Raytheon also makes the Minature Air Launched Decoy (MALD) system which could be used by India to protect their aircraft.
Once the major award is announced for the multi-billion procurement of the aircraft then the various equipment and support contracts will follow. This does offer an opportunity for the U.S. defense contractors shut out from selling the primary aircraft to get some of the work associated with the system.
Filed under: Boeing, Business Line, Companies, Contract Additions, Contract Awards, Countries, D'Assault, EADS, Events, Lockheed Martin, logistics, Military Aviation, missile defense, production program, Raytheon, Saudi Arabia, Services, UAE
The Dubai Air Show held in the United Arab Emirates (U.A.E.) every year has become one of the three most important air shows and military exhibitions. It joins the alternating Paris and Farnborough air shows that take place in France and the U.K. ever other year and the Singapore Air Show as one of the ways defense contractors market their wares to a wide variety of customers. The Dubai due to its location obviously focuses on the U.A.E. and other Gulf States.
In the past the show has been the scene for announcing major defense contracts. In 2009 the U.A.E. bought military transports from Lockheed Martin (LMT) and Boeing (BA) as well as made a major investment in missile defenses with planned purchases from Lockheed and Raytheon (RTN). These contracts whetted the appetites of the companies for further deals with a goal of offsetting the coming reductions in domestic defense spending.
In 2010 there were no major contracts announced although the U.A.E. did make some investments in joint ventures between domestic companies and foreign ones to provide support to existing systems and build new ones at home. It was safe to say that 2010 was not what the U.S. and European defense contractors had hoped for.
The current 2011 edition has seen many different contracts for civil aviation. EADS (EADS:P) and Boeing have sold airliners to various Gulf based companies as well as different maintenance and upgrade plans have been signed but so far no real military contracts.
There is hope that the U.A.E. will commit finally to a new fighter with France’s Dassault and Eurofighter considered top contenders but that has been talked about for many months. The same story was being discussed at last year’s show. The U.A.E. did discuss its plans for upgrading and improving its air defenses next year including plans to add a UAV to its military in 2013. While the state is negotiating supposedly with Dassault it also expressed interest in another more advanced fighter.
Boeing was also hoping to announce that a contract for their new version of the OH-6 helicopter, the AH-6I, could be executed. So far that has not happened. Jordan and Saudi Arabia are considered contenders for the light attack aircraft.
While there are different things being considered by the Gulf States none of these have yet to come to fruition. It may be another disappointing show for the Western defense contractors. Faced with the potential for reduced sales in their home countries these types of foreign deals will become more necessary to maintain revenue and earnings.
Filed under: Boeing, Business Line, Companies, Contract Awards, Countries, D'Assault, development program, Events, India, Lockheed Martin, MiG, Military Aviation, production program, Proposal, SAAB, Services
As reported last month India’s Government announced on Friday that they have begun the final process for selecting the winner in the Medium Multi-Role Combat Aircraft (MMRCA) contract. This is to buy a modern, Western fighter aircraft to replace some aging Russian ones and supplement a modern fighter being jointly developed by India and Russia. After a lengthy contest the remaining two contenders are Eurofighter and France’s Dassault Rafael.
On the 4th the committee responsible for negotiating the price of the 126 aircraft and its life-cycle support received the final bids from the two companies. The estimated cost for the contract will be in the $10 billion range. The final review and negotiations leading to the choice of a winner should be completed by the end of 2011.
The contest began almost five years ago and proposals were received from six different companies. Two American; Lockheed Martin (LMT) and Boeing (BA); Sweden’s SAAB and Russia’s United Aircraft Corp. as well as the two Western European aircraft. Interestingly after the evaluation of the proposals and analysis of the aircraft’s capabilities all were eliminated but the Typhoon and Rafael. This was a blow to the U.S. who were hoping to be able to sell a modern fighter to India building upon two earlier contract negotiations for Boeing’s P-8 maritime patrol aircraft and Lockheed’s C-130J transport.
The U.S. after their aircraft had been eliminated had raised the idea of proposing a variant of the F-35 Joint Strike Fighter (JSF) for the contract but India did not entertain that. The JSF is currently in Low Rate Production and is the product of the U.S. and several other countries. Unlike the other six earlier bids it is a Fifth Generation aircraft.
This contract along with Brazil’s stalled contest are the only two major foriegn fighter sales currently available although Japan is planning to begin the process to buy a new aircraft. The major aerospace contractors are looking for these deals to make up for reduced spending by the U.S. and European governments due to budgetary pressures and the cut backs in Iraq and Afghanistan.
The winning of the Indian contract would be the first foreign sale of the Rafael which is only used by the French Air Force and Navy. The Eurofighter has been sold to Saudi Arabia. Both aircraft were used in the recent air campaign against Libya. Eurofighter would also like the sale as the European partners such as the U.K. and Germany are considering buying less Typhoons then they originally committed to due to funding shortfalls.
The sale to India too would mark a breakthrough as they traditionally have bought Russian or domestic aircraft or with programs like the Hawk trainer manufactured them in India. The contract has stiff offset requirements and the winner will have to invest around $5 billion in the Indian economy. India’s offset and technology transfer rules have in the past made it hard especially for American companies to bid on their military contracts. This deal along with others are the result of modifications to those rules made in recent years.
This contract will see the first 18 aircraft built overseas and then the remainder manufactured in India.
Filed under: Boeing, Business Line, Companies, Contract Awards, Countries, D'Assault, development program, Events, India, MiG, Military Aviation, production program, Proposal, SAAB, Services
The Indian Government yesterday stated that it had completed their evaluation of the offset reports submitted by the two bidders for their new fighter program. This will allow Eurofighter and Dassault to submit their final offers with a goal of announcing the winner in November.
The two Western European companies were chosen from among a total of six offerors to go on in the contest after a series of evaluations earlier this year. Lockheed Martin (LMT), Boeing (BA), MiG and SAAB had also proposed aircraft but their proposals were knocked out after a series of reviews and flight demonstrations.
Since Brazil’s contest for a similar combat aircraft has seemed to stall the Indian contract is one of the largest foreign sales available at about $10 billion and became very important as the U.S. and Europe plan to reduce their defense spending. With the U.S. focusing on the F-35 from Lockheed and countries like Great Britain, Germany and France ending their buys of the Eurofighter there has been little sales for other fighters. The Dassault Rafael and SAAB Gripen have not found another user other then the home nation as well which put pressure on them to try and keep their production line going.
The elimination of the two U.S. aircraft was also a surprise as India had been looking to that country for more equipment. This has included purchases of Boeing P-8I maritime patrol aircraft and C-17 transports. The choice not to have one of their fighters continue into the next round dealt a blow to the U.S. defense contractors hope of selling more to India.
When the decision is made it will mark the end to an over four year acquisition process with a hope that there will not be any corruption issues as has happened with so many Indian procurement programs in the past. The new fighter is a key component of the upgrading of the capabilities of India.
Filed under: Australia, Boeing, Business Line, Companies, Contract Additions, Contract Awards, Countries, D'Assault, Department of Defense, development program, England, Events, Holland, India, Japan, Lockheed Martin, MiG, Military Aviation, production program, Services, U.S. Air Force, United States
Currently there are two major fighter contests on-going as Brazil and India work to consider a new advanced fighter for their defense needs. Now it has been reported that Japan is interested in also starting a competition to add a later generation aircraft to its fleet of F-15J fighters. Sometime this month the country will want bids for 40 new aircraft.
In Brazil the discussion seems to be between the United States’ F/A-18 made by Boeing (BA) and the French company Dassault Rafael fighter. That contest continues to be delayed as Brazil faces some economic issues and re-thinks its commitment to spending so much money on defense items. One component of the contest that is key is the construction of manufacturing facilities in Brazil and the transfer of technology to help the South American country improve its aerospace industry.
In India the contest has reached a point where they downselected to only two bidders both European. After looking at proposals from Boeing, Lockheed Martin (LMT), MiG, Eurofighter and Dassault only the last two were chosen to proceed in the contest. The decision was a blow to the the American bidders as they had hoped this contract would offset potential reductions in U.S. defense spending.
Now the reports are that Japan will receive bids from Boeing, Lockheed and Eurofighter for their requirements. The Lockheed F-35 Joint Strike Fighter (JSF) is considered the front runner despite its cost and the current schedule issues the program is facing. This is primarily due to its more stealthy qualities over the earlier generation fighters.
The F-35 is in development and low rate production for the U.S. military, the U.K., Netherlands, Canada and Australia. Other foreign partners include Norway and Israel. The addition of Japan to the program would not be a big leap although they expect that the jet they order in the next few months would be in service by 2016. JSF production should be ramping up to higher quantities by then but any major cuts to the U.S. defense budget may affect production rates and quantities. If the JSF cannot meet the Japanese schedule they may end up considering one of the other options.
Filed under: Boeing, Business Line, Companies, Contract Additions, Contract Awards, Countries, D'Assault, EADS, Events, France, India, Lockheed Martin, MiG, Military Aviation, production program, Proposal, SAAB
As India moves forward with its contest for a new fighter to be made by a Western producer the potential suppliers are angling to get ready for the contract to start. The contest started over two years ago for the advanced aircraft and bids were received from six different suppliers. These included the American companies Boeing (BA) and Lockheed Martin (LMT), Russia’s MiG, Sweden’s SAAB, the multi-national consortium Eurofighter and France’s Dassault.
Recently as part of the contract evaluation process the Indian selection authorities made a decision to eliminate all of the aircraft but the two from Western Europe.
As part of this contract as with most Indian defense deals there are significant offset requirements that must be met. Actually to spur bids from Western companies who previously had found it hard to participate in contests the Government reduced their requirements from traditionally very high ones. Offsets require the winner to spend some percentage of the total contract value in the awarding country. Often it can be by buying parts, or paying for assembly work, or in some other business line as long as it meets the total requirement. Boeing (BA) has begun to do this as part of their contract for six P-8I maritime patrol aircraft.
Even though no winner has yet to be announced for the Medium Multi-Role Combat Aircraft (MMRCA) contract companies like EADS (EADS:P) who are part of the Eurofighter consortium that makes the Typhoon fighter have begun to position themselves if they do win. The company has announced a deal with Indian consortium Wipro to provide components to its subsidiary CESA.
Even if Eurofighter does not win the MMRCA contract this agreement will support EADS production of other aircraft and aerospace components if they want to use it. As with all of the large aviation contractors EADS is looking for expansion into Asia to be nearer emerging markets as well as perhaps to gain benefits of labor costs and available infrastructure.
As the decision on who will win this contract gets closer more of the companies involved in the production of the two contenders will be announcing deals like this. India’s policies require this investment and in the long run it only makes good business sense.
Photo from tony.evans Flickr photostream.
Filed under: Boeing, Business Line, California, Companies, Congress, Contract Additions, Contract Awards, Countries, D'Assault, Department of Defense, Events, Federal Budget Process, India, MiG, Military Aviation, production program, SAAB, Services, States, U.S. Air Force
Boeing (BA) is facing the end of production for the C-17 strategic transport as the United States decided to not buy anymore of the aircraft despite its heavy use in supporting the fighting in Iraq and Afghanistan. Over the last few years Congress had increased the total number of aircraft being bought for the U.S. Air Force despite its and the Defense Department requests to stop procurement.
The C-17 has seen sales to overseas customers with Australia, the United Kingdom and some Gulf States purchasing the system. Even so Boeing could see the end of production and had begun to shut down its production line in Long Beach, CA. This facility gained when McDonnell-Douglas merged with Boeing in the Nineties was destined to close when the C-17 was finished as Boeing had no other work for it.
The company and its workers received good news today as it was announced that India had agreed to sign a contract for ten of the aircraft. Not only is the deal worth over $4 billion it will keep the production line open for one more year. This buys even more time for Boeing to find other customers for the aircraft or even convince the U.S. to procure more.
India has in the last few years turned to Western defense contractors for different systems including buying the P-8 maritime patrol aircraft from Boeing in two recent contracts. This is in a bid to upgrade their capabilities beyond what their domestic suppliers and the more traditional Russian and UK companies have been providing.
India currently has a new fighter in competition but recently down selected to just two offerings – France’s Rafael and Eurofighter’s Typhoon. The two American bidders along with MiG and SAAB did not make it through to the final round of the contest. Some saw this as a deliberate snub of America possibly related to policy towards Pakistan and the potentiality that if there was a conflict between India and its neighbor the U.S. might boycott of supplying either nation.
Boeing, though, may get a trifecta of contracts as India is still considering the AH-64 Apache as a contender for a new attack helicopter. The Defense Department has notified Congress of a potential $1.4 billion worth of helicopters, support and training.
India remains a market of great potential for the U.S. defense contractors as they face the possibility of cuts to the U.S. budget and the end of fighting in Iraq and Afghanistan with all the potential for reduced revenue and earnings. So far deals with India have been few-and-far between but today’s contract announcement is a step in the right direction.
Photo from kingair42’s Flickr photostream.
Filed under: Boeing, Business Line, Companies, Countries, D'Assault, Events, FMS, India, Lockheed Martin, Military Aviation, production program, Proposal
The Indian government has taken a step further in their ongoing contest to choose a new fighter for their military by down selecting to only two of the six bidders for the advanced aircraft contract. In a surprising move the two selected to go on were France’s Dassault Rafael and the Eurofighter’s consortium’s Typhoon.
This meant that the U.S. defense contractor’s Boeing (BA) and Lockheed Martin (LMT) who were trying to win the deal were cut out of the final selection process. This decision was a disappointment to the U.S. government who have been hoping to expand sales to the growing Indian market.
Many companies have been looking to the Indian market to offset potential declines in the U.S. and European defense budgets. The Indian contract along with the now delayed Brazilian one are two of the largest available in the near term.
That does not mean India has not bought from America. They have purchased several P-8I maritime patrol aircraft from Boeing and are potentially buying the C-17 transport aircraft. The decision, though, to move out with an American fighter would have indicated a desire to broaden their market and given hope to the U.S. defense contractors.
Photo from Shandchem’s flickr photostream.
Filed under: Boeing, Business Line, Companies, Contract Additions, Countries, D'Assault, development program, Events, India, Lockheed Martin, MiG, Military Aviation, northrop grumman, production program, SAAB, Services
The United States Navy has been using the P-3C Orion as its primary patrol and anti-submarine aircraft for about forty years. This propeller driven aircraft was manufactured by Lockheed Martin (LMT). It is in the process of being replaced by the P-8A Poseidon aircraft based on Boeing’s (BA) 737 jet airliner.
There are currently P-8A aircraft being tested by the Navy and the first initial production aircraft is nearing completion. The P-3C has seen some use by U.S. allies and it is expected that the P-8A will also follow suit.
Right now though the only confirmed international customer is the Indian government. In the largest defense contract between that country and the United States they agreed two years ago to purchase eight of the aircraft to replace their fleet of Soviet designed and built Ilyushin aircraft.
India had traditionally purchased equipment from either the United Kingdom or Russia. Their rules on offsets and use of domestic corporations have made their market unattractive for U.S. and other Western companies but in the last few years as part of an attempt to upgrade their overall capability they have relaxed those rules. The deal for the “P-8I” is hopefully the foot in the door for other large contracts such as the new fighter currently undergoing source selection and potential helicopter contracts.
Now it has come out that India intends to increase the order to 12 aircraft. This will increase the total value of the contract to close to $3 billion. India is also looking at buying C-17 transports from Boeing. An order the company needs to keep their Long Beach, CA production line open for that aircraft.
Boeing is also competing its F/A-18 aircraft for the new fighter against a diverse group of competitors. Sweden’s SAAB (SAAB), Lockheed, Eurofighter, Russia’s MiG and France’s Dassault Aviation have also submitted proposals. The award has been dragged out and now may not occur until 2012.
India is seen as a market along with other Asian and Middle Eastern nations that may be turned to to balance declines in domestic defense spending expected in the U.S. and Europe. The P-8I is hoped to be the first of many such contracts.
Photo from Henrique Vicete’s flickr photostream.
Filed under: BAE Systems, Boeing, Brazil, Business Line, Companies, Contract Additions, Contract Awards, Countries, D'Assault, development program, EADS, Events, France, India, Lockheed Martin, MiG, Military Aviation, production program, Restructuring, SAAB, Services, Sweden, UAE
The Western defense contractors face a shrinking market right now domestically for advanced combat aircraft. The U.S. and many of its Allies are committed to Lockheed Martin’s (LMT) F-35 Joint Strike Fighter and that system will dominate their inventories for the next few decades. The U.S. ended production of the F-22 Raptor by Lockheed and Boeing (BA) and European nations have pretty much finished up ordering Eurofighter Typhoon’s with the United Kingdom even planning retiring some of their older aircraft due to budgetary pressures. France and Sweden have their own domestic aircraft in the Dassault Rafale and SAAB Gripen but have purchased as many of those as they really can.
All of these companies and countries have looked to overseas customers to sell these aircraft with the two biggest deals being for Brazil and India. Unfortunately these contract are not materializing in the near future and may now be pushed out a year or two.
India has planned major upgrades to its military through the purchase of advanced Western systems. This has included aircraft like C-130J transports from Lockheed and P-8I maritime patrol aircraft from Boeing (BA) but their cornerstone program was for over a hundred fighters. This contract has been going through the source selection with the competitors from the U.S., Europe and Russia demonstrating their aircraft and at one point was hoped to be awarded this summer. It is now being reported that this major contract won’t be decided until early in 2012.
Brazil has also been planning to expand and improve its military through some deals with overseas suppliers. They too would like to buy a new fighter and that contest has seemed to be between Boeing’s F/A-18 and the Rafale although SAAB bid as well. The original plan was to award this year but due to budget cuts the decision will now be postponed for at least twelve months. There are concerns that it may not happen at all as Brazil had to cut its defense spending significantly.
Finally Dassault had hoped that the U.A.E. might invest in the Rafale as well which so far has yet to find a foriegn buyer. The Emirates already operates French Mirage aircraft and the Rafale would be the logical extension of these. The big arms expo in the U.A.E., IDEX, came and went though without any announcement of a deal although a contract was awarded to upgrade Mirage aircraft worth about $30 million. Failure to win this contract would be a blow to France’s aggressive campaign to sell the fighter to new customers.
It had been hoped that these overseas sales would make up for the decline in U.S. and European defense spending and help keep production lines going and workers employed. Unfortunately they are not materializing as fast as hoped and this may affect different contractor’s plans. The Asian and South American markets were seen as key to keep the defense business going in the next several years. It may be that even these nations who were hoping to improve their military may not have the money necessarily to meet their original plans.
Photo from Jerry Gunner’s flickr photostream.
Filed under: Boeing, Brazil, Business Line, Companies, Contract Awards, Countries, D'Assault, Events, Military Aviation, production program, SAAB
One of the biggest contracts currently under consideration is Brazil’s buying of modern fighter aircraft. Right now bids from Dassault, SAAB and Boeing are under consideration. This along with India’s new fighter program are two of the larger aviation contracts waiting for award. Brazil as part of this contract is expecting a great deal of investment in their economy using this and a major helicopter deal with Eurocopter to increase the capability and technology of their defense industry.
Now it is being reported that Brazil will delay a final decision on this contract until early next year. The decision is related to how much investment each company is willing to make and whether Brazil will be able to use their technology in future aircraft construction. Because the contract is so important especially to Dassualt and SAAB the amount of technology transferred may be high.
Filed under: Boeing, Business Line, Companies, Contract Awards, Countries, D'Assault, EADS, Events, India, Lockheed Martin, MiG, Military Aviation, production program, Proposal, SAAB
Update — Flight International is reporting that India says it has not ruled out any competitor in the program.
The Indian Air Force is looking to purchase an advanced fighter to add to their inventory. Six foreign companies had submitted bids for the 126 aircraft order. Now word comes that the French proposed Dassault Rafale was eliminated from the competition. The Indianexpress.com reports that publicly it was stated the aircraft did not meet certain “qualitative” requirements. It was also said that the proposal submitted showed the aircraft did not meet some of the technical requirements for the program. This means that the contest will continue with Boeing, Lockheed Martin, SAAB, MiG and Eurofighter participation for now.
The deal is one of several that India is proceeding with in an attempt to upgrade the technical capability of their armed forces. In the past the country had tended to buy from Russia or England. India has also spent the last several years developing an indigenous arms industry. Although lately they have turned to outside sources to include Israel and the U.S. for advanced weapons.
Currently there are several nations looking at buying advanced fighters. The Rafale has not been bid for many as most of the competition has been between the F/A-18G, SAAB Gripen, F-35 JSF and the Eurofighter Typhoon. The Indian contract is certainly one of the largest percolating.
Filed under: Boeing, Business Line, Companies, Countries, D'Assault, EADS, Events, FMS, India, Lockheed Martin, McDonnell Douglas, MiG, Military Aviation, production program, Proposal, SAAB, Trade Shows and Events
The six companies that submitted proposals for India’s new Medium Multi-role Combat Aircraft (MMRCA) contract will all be in attendance at the Aero India International Show. The Economic Times reports that the competitors for the potential $10 billion contract will be at the show along with a host of other U.S. and European companies. Boeing, Lockheed, EADS, SAAB, Dassault and MiG all submitted proposals for the program. The theme of the show will be business activity between Indian and foreign companies. This contract is now one of the largest for tactical aircraft out for bid, and the companies will be touting their wares at the show.
Filed under: Business Line, Contract Awards, Countries, D'Assault, France, Greece, Lockheed Martin, Military Aviation, production program, Proposal, SAAB
Greece signed a contract to buy French warships and entered discussions on purchasing fifteen Puma helicopters. Reuters reports that the Greek government may also be open to purchasing new fighter aircraft. Greek defense spending has been limited due to the costs of hosting the Summer Olympics recently. If Greece did pursue the fighter aircraft it would attract attention from a variety of companies. One would expect Lockheed Martin, Dassualt, SAAB and Eurofighter to possibly propose.
Filed under: Boeing, D'Assault, EADS, FMS, India, Lockheed Martin, MiG, Military Aviation, production program, Proposal, SAAB
India already loosened their offset requirements leading to progress on the new fighter contract. Now the government moved to limit the use of Indian representatives or “agents” in helping the foreign companies with their bid. The six teams that submitted proposals are moving to line up Indian companies to support their fabrication and delivery of the aircraft. By limiting these agents the Indian government hopes to make the process more open and increase the ability of non-Indian companies to use their industry.
See Central Chronicle for more.