yes, but what he asks is the attrition rate (meaning, how many real aircraft lost, not mission aborts)
methinks there are far too many lawyers and law courts in the USA… for every market or almost, the looser sues…
I wonder whether there will be a lawsuit in india after the result is known 😀
I think that Mildave thought more of “france” rather than just dassault as “one of the rare “complete aircraft” producers outside USA”..
if one looks around the world, there’s basically three countries doing so:
– USA
– Russia
– France
all others rely on international partnerships or imports or “more or less licensed” parts to build theirs
for sure, if they sell none, they won’t recover anything, we agree on that…
as a friend of mine says (scuba diver) “wet and sea” 😀
to be honest, it would take a bit more than just the intake widening.. the whole air duct would need a larger section, so a good chunk of the airframe and its aerodynamics would need to be redone
no wonder they don’t want to invest in it oif there’s nobody wiling to pay for it 😀
well all the business talk is nice, but what I’ve said was what apparently came out in this situation: dassault having a contract with the french state for the development of the aircraft (back in the ’80s) which required them “dassault” to finance 25% of development on their own, investment they’d be able to recover from exports (no extra charging the french forces to get that money back, basically)
that is what seems to be their point over the price of their last proposal (150 million per airframe) and under which they don’t seem to be willing to go (obviously estimating that getting less money back isn’t worth it
are they right or wrong?
I guess that they still have some competence to judge whether it is worth or not, with all the data at their disposal. one shouldn’t forget that until now, dassault’s benefits come from falcon assebly line, not rafales or mirages’ support. Unless you sell several thousand fighters (like the f-16for example), you’ll have hard time getting billions of dollars of benefit over spares and maintainance
@ spitfire9:
when the deal for the rafale was made initially, it was cold war, and the market for french aircraft was quite significant (if anything, the french forces were supposed to buy a higher number of airframes, which, by itself would have reduced the costs per airframe), and many nations had sufficintly high defense budgets to afford a good number of airframes.
that is the situation in which dassault had agreed with the french state over the deal
then came 1989 and the end of the cold war. the defence budgets shrinked to ridiculously low levels compared to what they previously were, and, as a result, orders were reduced/delayed, and the potential markets did the same.
now dassault has, as I said in a previous post, something like 7bn dollars to recover and it can’t expect to sell 2-300 airframes on top of french orders like with the mirage 2000. as a result, they have to make that money with lesser aircraft, and that gives a higher price per airframe. it’s not considering customers as idiots, as they’ll have to pay similar amount or higher for any new airframe. If they want an airframe that’s a 40 years old design when they integrate it in their service) then they buy an f-16 (or eventually an F-18 which would be “a bit modernised 40 year old design”) with all modern electronics (hopefully), and get a cheaper thing. if they wan’t something newer, be it the f-35, or typhoon or the rafale (not many other contenders anyway with similar capacities), they won’t get anything cheaper before 2020, and maybe even after, and they know it full well.
well, in rafale case, dassault had to pay 25% of development costs
you can argue that the french government will pay for it as well through its orders but that would mean that:
– the aircraft costs much less to produce than what’s being calculated
– dassaults makes no profit before they development investments are fully recovered
I don’t spend much time in serge dassault’s office, but I’d guess they planned a certain amount of exports and calculated how much they needed just to get their investment back, and from there on, they try to make some money on top of that.
now, considering that 290 aircraft at 147 millions pay the airframes (75 millions per airframeà and the states development part (about 70 million per airframe ordered (a litlle over 20bn dollars in total)), and considering that dassault had to pay 25% of development costs (one third of what the french government paid), that would mean that dassault has to recover around 7bn dollars on top of airframes’ price to get its investment back.
Overall, they can make money either by selling airframes, or by selling technology (ToT), but inn any case, somebody has to pay for it, or the company looses money. Now, if they get two customers to pay, they’ll start making profits and be able to propose a cheaper aircraft to next customers. the same goes for any aircraft… take the f-35, it costs a fortune right now, and everybody (especially those trying to sell it) will explain any future customer that the price he’ll pay in the future will be lower than now because of production ramping up and development repaid over more airframes, except that the first customers will never see any money back because there are more airframes produced later on, they’ll have paid a high price, because they were the first. the same goes for the rafale: the first to order will pay dassaults investments, and those who’ll comme later may get a bette rdeal as dassault will have recovered his investment and there will be a bigger margin (profits) to play with
Something wrong with your calculation, I think. Why should the customer repay Dassault for the costs of development paid by the French government? I presume your figure of airframe price for the french forces is about 147 million dollars/frame includes development costs paid by the state.
147 millions is the overall price when you divide what the french government will have paid when all the airframes will have been bought. the customer should pay dassault only for the part of development investment that dassault made, not the part already paid by the french govenment
If Dassault prices too highly and loses deals, they won’t get any of their development expenditure back on those lost deals, will they?
and i fthey sell it too low, they’ll have to sell an unsellable number of airframes to get the money back. at 150 million apiece, they’d need to sell about 90-100 airframes in export to get their investment back, which may be reached between the few potential customers. put the price at 117 million (UAEs offer) and you have to sell something like 180-200 airframes to break even… where will they sell them?
besides, we can talk all we want, the typhoon, with most of the features besides the a2a unfinanced yet can’t get even close to that price (somebody will have to pay for the developments, and the europeans are broke… so, what do you think? how many billions will UAE spend just for the development of the typhoon so that it reaches their level of expectations before buying a single airframe?
It´s called sarcasm…
oups… sorry…now that you say so… 😮
my last night was obviously a bit too short… I better go to bed… 😀
and his next sentence was just as clear:
Not exactly, Rafale is good enough for India right now and in time according MMRCA requirements, while EF offers only the future potential to be good enough for India, if India pays for the upgrades and with delays.
Yes, thats why the MMRCA finalists were the Super Hornet and the Viper Block 70, two “multi role”, combat proven fighters whith impecable “multi role” credentials, who by the way came on top of the gruelling 600+ points IAF evaluation…
You´ve just called incompetents to the entire IAF evaluation team.
Technical shortcomings indeed.If your arguments had any tracking with reality, the Typhoon would have been disqualified around the time when it landed at Leh.
Strawman arguments and an awfull lot of wishfull thinking around here.
f-16 and f18 on top?
so, according to you, IAF evaluation team just eliminated the two best aircraft in their own evaluation? what have you been smoking, man?
So what you are indirectly implying is that
a) EF, both in its current or future configuration will not meet IAF requirements, ever.
b) IAF is incompetent/unwilling to evaluate the aircrafts properly and EF should not have made this far or somehow the evaluation process was heavily loaded to give EF an advantage during evaluations ?
he said very clearly:
EF isn’t ready now, and may only be through promised upgrades in the future for which somebody still has to pay the price
you should read what he posted after: the 75 million per airframe is “with developement paid already” (state’s 75% of investment), while dassault has yet to get back its 25% of development investment they had to do.
Including the fundings for the whole program into airframe price for the french forces is about 147 million dollars/frame, not so different from the price to which dassault came down (9bn/60 airframes, which is 150 million dollars apiece)
$10 billion for 60 Rafales may not bring a profit ? What’s it made of ? Gold ?
er, I’ve read that dassault came down to 9bn in its offer, but UAE proposed only 7.
9bn gives you, more or less, what they get for rafales they build today for the french forces, so, accepting a lesser price instead (the french orders would be delayed in the process) would reduce the cashflow they already get… not necessarily interesting for them