Depending on the offset structure that we don’t know, yes if you remove the offset clause you remove costs.
But money is not the only parameter. We offset can bring you much more value that what you paid for it.
An yes you re true. The Indians need has to be filled even if MRCA was cancelled. What is discussed now is the next Rafale acquisition on top of the first 36.
I would have thought that producing something in India would cost less than producing the same thing in France. On that basis, why should offsets increase the cost to Dassault?
Korea Likely to Pick Engine Maker for Fighter Jet Project This Month
(Source: The Korea Herald; published April 19, 2016)
South Korea plans to pick an engine provider for its indigenous fighter jet project as early as this month, an official at the country’s sole aircraft maker said Tuesday.
European engine maker Eurojet Turbo GmbH and U.S. company General Electric are vying to become the supplier for the engines of the next generation combat planes to be built under the Korean Fighter Experimental program, Korea Aerospace Industries Ltd. said.
No, they’re the same thing (7.9 billion Euros = $8.8 billion)
My bad. Didn’t notice that one price was euros but the other was in $.
Sources with first-hand knowledge of the discussions reveal that the Indian team has managed to hammer down the price for the deal from some 11 billion Euros demanded by the French to about 7.89 billion Euros after three months of sustained and hard negotiations. The expectation is that the final deal will be clinched in another month’s time.
http://bharatshakti.in/after-hard-bargain-rafale-deal-price-finalised/
NEW DELHI: India has agreed to pay $8.8 billion to France’s Dassault for 36 fighter jets, reports said Friday, as sources from both countries hinted a long-delayed deal to purchase the aircraft was imminent.
http://www.brecorder.com/world/global-business-a-economy/290738-india-t…
Those 2 prices are nearly $1 billion different. Is the price agreed the first/the second/something inbetween? Whatever, the reports say a price has been agreed. That was said to be the big stumbling block, wasn’t it?
Once the Rafale deal is concluded, the MoD and IAF is likely to concentrate on drawing up another plan to acquire another batch of fighter jets manufactured under the Make in India programme. This tender, whenever finalised, will allow other major aviation majors worldwide to compete in the Indian market for fighter jets.
Seems bizarre to me. Why not set up a local production/assembly deal + buy some ready-made from the same manufacturer to supply IAF until local production gets going (as was proposed with MMRCA)? What would be the point of buying 36 Rafale with attendant costs for the type then setting up to make Typhoon or F/A-18 or whatever and having to pay the costs of introducing and supporting a second type?
Err, it’s how defense companies are expected to work. While the F-35 has a different history, the date between the partner nations deciding to join up and the date they’re expected to receive their first delivery can be wider than a decade. And even if we discount partner nations, look at Singapore’s interest in the F-35. What’s a reasonable estimate on F-35 delivery to Singapore? Did that stop LM from putting a booth at the Singapore Air Show and displaying a mock-up of the F-35? And how about the J-31? When did China start marketing the J-31 and when is the expected first delivery?
Yes, customers selected F-35 for delivery 10+ years ahead which was when they intended retiring their existing fighter force. In the case of Belgium, Denmark, Finland, Switzerland, I don’t think any of those countries are looking for delivery in 10 years’ time. That’s why I see marketing Gripen E to any country wanting fighters delivered pre-2020 as a bit of a waste of money. Yes, perhaps a country would try to eke out extra hours on its aging airframes so they would last until Gripen E could be delivered. Perhaps they would choose some other aircraft that was available in the time frame desired.
Defense companies do not stop their marketing efforts even when they have several years backlog or when they aren’t sure when the product will be ready for delivery. There is no benefit in doing so. The onus is on the buyer to decide whether they’re willing to accept the deal. Sometimes the defense company will offer a stopgap measure, but it is still up to the buyer, not the defense companies.
Fair observation. I guess the rewards from getting an order are so large that it is worth pursuing anything that’s not seen as a hopeless prospect (eg Eurofighter withdrawing from the Norwegian selection process, Boeing withdrawing from the Swiss selection process, Dassault not bothering to offer Rafale in the South Korean selection process).
Imo for those countries seeking f-16 replacements, their best solution is to get newer f-16s before the line closes for good (yes of course LM won’t actively promoting it against their own f-35).
Saab is marketing the E model with the “halo” of it being a brand new 4.5gen design (opposed to say F-16 3gen design), light years away more advanced than its own C/D model, and on par with other fighters such as typhoon and rafale at relatively lower cost than those fighters. In reality its lightweight design has lots of compromises that doesn’t make it any more capable than say the latest f-16 upgrades.
I reckon that if the E outperforms the F-16 in some ways and underperforms the F-16 in others (due to its size), it’s got a big market niche in the 2020’s – especially if new build F-16’s are no longer available. To me it’s extremely likely that F-16 will cease to be available before Gripen E becomes available for export delivery (barring Brazil), so that’s good timing for SAAB.
That was some years ago.
If the NG is really cheaper than the c/d, saab wouldn’t still market new c/d builds as a cheaper option to the NG.
Thanks. So C is less to buy than E now.
It’s interesting to read the following:
“The first opportunity to accommodate orders on the E line beyond Sweden and Brazil will be in 2022. There are many near-term fighter requirements that won’t wait until then, and so the C/D is a very viable proposal for those nations.”
I don’t quite understand why SAAB is marketing the E to anyone if none can be delivered for 6+ years. What happens if Switzerland revives its F-5 replacement this year or next – does SAAB respond, offering to build some new Gripen C to lend/lease to Switzerland until they can be replaced by Gripen E in 2022+? Same thing for Belgium/Denmark?
$50million is about right for a new single engined lightweight fighter. Higher, probably better to go for brand new f-16 while the line is still open.
I recall some years ago that SAAB said Gripen E was expected to be cheaper to build than Gripen C, due to the lower cost of the F414 engine to be used in the Gripen E. If that is still the case, Gripen E may cost closer to $50 million than $100 million. Of course whether the flyaway cost of the aircraft is $60 million or $70 million or $80 million has only a minor bearing on the overall cost of procuring and operating the type.
Saab has outlined its commitment to expand industrial alliances in Malaysia in a bid to enhance its presence in the market.
Dan Enstedt, president and CEO of Saab Asia Pacific, said in a statement on 8 April that the company’s strategy in Malaysia is focused on building partnerships that can support Saab’s efforts to supply the Malaysian Armed Forces (MAF) with a range of capabilities.
These include platforms such as the JAS 39 Gripen NG multirole fighter aircraft and systems such as electronic warfare, signature management, communications, surveillance, fire control and radars, warheads and combat management.
‘…the company’s strategy in Malaysia is focused on building partnerships that can support Saab’s efforts to supply the Malaysian Armed Forces (MAF) with a range of capabilities.’
I wonder what ‘support’ they are talking about. It seems to me that all this flowery statement means is that SAAB would like to sell Gripen and other things to Malaysia.
What Buran wrote:
They do need to rationalise as currently PAF have equipment from every major aircraft manufacturing nation (US/France/China/Sweden/Russia (MI-17s).
I thought the point being made was that the number of countries supplying Pakistan should be reduced.
But that is precisely what they’re doing..buying AH-1Zs from the US, Mi-35s from Russia, Z-10s from China, while actively showing interest in the Mi-28NE..all for a combined fleet of <30. Maintenance and training cannot be streamlined with such an approach, but then PA’s rotary fleet has always been a collection of various types.
Agreed, too many sub fleets is an expensive way to run an air force (or airline, for that matter).
Parrikar comments on Rafale deal (again)
India wants to close the multi-billion-dollar deal for 36 Rafale fighter jets from Dassault Aviation as early as possible, defence minister Manohar Parrikar told DefenceAviationPost.com.
Forgive me for my huge ignorance, but the Portuguese language has been beyond my capabilities. In reason of that I used the Google Translate for it.
The first translation that I got was something like this: you’re an old man very naive.
In fact I have agreed with this first answer , although it was not exactly those words that it wrote for me, but how it has been children in this thread , then I have soothed those adjectives about me.
However I had made others attempts until the Google could provided with this translation from your text:
As you can see it is not the same words that you put in the first sentence in English that you wrote in your post: “The REDUCTION of the value in USD AFTER the signature was due to the exchange rate because the contract was signed in SEK and not in USD.”
Them in my humble opinion the sense of both sentence its not equal.
Please tell me if this translation has been correct, because if you really said it , then I will answer this or both.
Maurobaggio:
In my opinion this in English –
‘The REDUCTION of the value in USD AFTER the signature [of the contract] was due to the exchange rate because the contract was signed in SEK and not in USD.’
has the same meaning as this in Portuguese –
‘A REDUÇÃO do valor (em dólares dos Estados Unidos) DEPOIS da assinatura do contrato foi devido a flutuação da taxa de câmbio, já que o contrato foi assinado em coroas suecas e não em dólares.’
I’m a little surprised you can’t see that. When I once worked in Italy I was surprised to find that if I spoke Portuguese to people and they talked Italian to me, we could understand a great deal of what we were saying to each other.
Mmmm… sorry if I’ve got it wrong – I assume you are Italian!
Completely wrong.
Pakistan will never be in a position to replace India in Russia and India does not want to replace the Yo-Yo relationship US has with Pakistan. US will support whomever they need at that time as they always do and India knows that.
Further the difference between Pak and US are only on Afghan Taliban (Yes terrorist today, but were potential business partners for US pre 9/11 and we don’t know about the future)
Best solution will be to get as many US freebies as possible as the first line and spend own cash on Chinese/Russian equipment to beef up the numbers. They do need to rationalise as currently PAF have equipment from every major aircraft manufacturing nation (US/France/China/Sweden/Russia (MI-17s).
Does it matter if PAF has equipment from several different countries? What’s wrong with AWACS from one country, heavy strategic lift from another, light fighters from another etc. Agreed, you want to avoid buying a small number of a similar type from several different countries eg some light fighters from China, some from France, some from Sweden, some from USA etc, the reason being the cost of operating a large number of similar types (albeit with different individual capabilities).