Export fighters Dassault Rafale: there is one contract, two are expected
Recently, there have been new reports on the possible future of the Indo-French contract for the supply of Dassault Rafale fighter jets. As before, these news do not bode well for the french side. Seriously protracted negotiations may not lead to any real result, since the parties have not yet found a common language on a number of points of the agreement. At the same time, there are disagreements both on the proposals of India and on the ideas expressed by France. Against this background, it is increasingly being said about the possible choice of a new aircraft for the Indian Air Force.
16 February, the Indian edition of Business Standard, which has repeatedly published news on the progress of the negotiations, announced new details of the current situation. With reference to an unnamed representative of the Indian military, it is argued that the military is already considering a possible rejection of further negotiations and the purchase of French aircraft. The main reason for this is the unacceptably high cost of the proposed equipment. Previously, Dassault was ready to sell fighters at 65 million US dollars per unit, but a year ago, prices rose significantly. Now each plane will cost the customer about 120 million. Thus, the total batch value of the Rafale 126 fighter jets will exceed all reasonable limits. Taking into account the costs of operation during the life cycle, the costs will reach $ 30 billion.
Also, the foreign press reports that instead of French fighters, India can purchase equipment from another country. The possibility of signing a new contract for the construction of Su-30MKI fighter jets, created in Russia and produced under license in Indian enterprises, is being considered. Thus, in mid-January, Indian Defense Minister Manohar Parrikar noted that the Russian aircraft is a strong competitor to the French. However, the final decision on this issue has not yet been made.
Against the background of Indian press reports, statements by Russian aircraft manufacturers appeared. On February 17, the Irkut Corporation press service spoke about plans for 2015. By the end of this year, the corporation must complete the supply of all components ordered by India earlier. During 2015, the Indian company Hindustan Aeronautics Limited should receive the last of 222 ordered kits for assembling Su-30MKI fighters. Thus, over the next few months, the next contract for the construction of the Russian aviation techniques.
At the same time, the management of Rosoboronexport made a statement regarding the possible continuation of military-technical cooperation with India. According to the deputy general director of the company, Sergei Goreslavsky, quoted by RIA Novosti, a new contract may emerge for the supply of an additional batch of Su-30MKI fighters, which are already in service with large numbers of Indian air forces. The Russian side is ready for the emergence of such an agreement, but for its appearance an appropriate decision by the Indian leadership is necessary. The request from him has not yet been received.
Recall that the negotiations between India and France on the delivery of Dassault Rafale fighter jets are continuing from the beginning of 126, when the French aircraft was declared the winner of the MMRCA tender. Since that time, the parties have not been able to reach an agreement and sign a contract. According to reports, the signing of the agreement is hampered by several disagreements. First, it was reported that it was impossible to agree on the procedure for the production and maintenance of equipment. India wanted to get a relatively small batch of French-made aircraft, and then expand the construction of the Rafale at its plants. France did not agree to this, since the proposed contract meant the provision of a guarantee not only for "French", but also for "Indian" aircraft. For a number of reasons, Dassault did not accept this order of maintenance.
Relatively recently, at the beginning of last year, a new problem appeared, this time of a financial nature. French aircraft manufacturers almost doubled the cost of their products, as a result of which the Indian Air Force would have to seriously increase its investment in upgrading its equipment.
The latest news about the possible rejection of the contract in conjunction with the events in Europe led to the emergence of a new version, designed to explain the actions of the Indian leadership. France for the past few months for political reasons refuses to transfer to Russia the previously ordered and built universal landing craft of the Mistral type. The fate of the second ship of this type also remains in question. Thus, it can not be ruled out that India no longer sees the point in concluding a deal with a supplier who can at any time refuse to transfer the ordered equipment. However, this version looks less believable than the above.
It should be noted that the current situation around the new contract is equally disadvantageous to both the French and the Indian side. Until recently, Dassault had no export contracts for Rafale fighter jets, and India needed a fairly large number of modern aircraft. It is known that to ensure the required combat effectiveness and effective confrontation with Pakistan, the Indian Air Force must have 45 squadrons of different composition. Currently, they include only 25 squadrons, with more than half of these units equipped with obsolete aircraft that will be decommissioned in the near future.
Thus, the current situation is not very pleasant for both parties, and the search for a way out of it can be associated with serious difficulties. Air India 2015 air show started on Wednesday in Indian Bangalore. It is possible that during this event any statements will be made regarding the protracted negotiations on the long-suffering contract.
India’s Rafale supply contract was to be the first export contract for this aircraft. Nevertheless, the negotiations dragged on for three years, because of which the first was a different agreement. February 16 France and Egypt immediately signed five contracts for the supply of various weapons and equipment. In the foreseeable future, the Egyptian military will receive the Rafale 24 fighter (16 twin Rafale B and 8 single Rafale C) F3 modifications with a guided weapon, as well as a Normandie frigate of the type FREMM and weapons for it. For planes, France will receive about 3,5 billion euros (about 145 million euros per unit) and 700 million will be paid for aircraft armament. The frigate, along with the training of personnel and service, will cost the payer 950 millions, the weapons for him will cost 400 millions.
Of great interest is the funding structure of these purchases. So, Saudi Arabia and the United Arab Emirates in order to help friendly Egypt have to make a deposit in 10 billion dollars. In order to promptly deliver the ordered weapons and equipment, half of the contract will be paid for with a loan from three French banks. The first payment on the contract may take place before the end of February or in early March.
Contracts involve the transfer of technology in the next few years. In this case, the frigate "Normandy", currently undergoing tests, and the first three fighters Dassault Rafale must be transferred to the Egyptian military already in the second half of the 2015 year. According to some reports, this technique will be shown to the customer in early August, during the opening ceremony of the reconstructed Suez Canal. The main deliveries will begin later and will continue until the end of the decade.
A specific feature of the first export contract for the supply of Rafale aircraft is the procedure for financing the transaction and the selection of goods. In fact, the aircraft for the Egyptian Air Force are bought with money from Saudi Arabia and the United Arab Emirates, these same countries have been actively involved in choosing a new technology for a friendly state. Thus, the new contract did not appear as a result of a full-fledged tender, however it became a landmark event in stories french fighter.
France hopes that the signing of a contract with Egypt will have a beneficial effect on the future fate of the Rafale aircraft. Paris is currently negotiating with Qatar, the subject of which are fighters of this type. At the same time, the most significant contract has a dubious future, since France still cannot reach an agreement with India, and the latter seems to be considering the possibility of refusing further negotiations.
At the moment, the further fate of the production of aircraft Dassault Rafale looks ambiguous. There is a contract for 24 aircraft for Egypt (at least the first three cars will be transferred from the French Air Force), and in the near future a similar agreement with Qatar may appear. At the same time, the largest and most anticipated contract for 126 aircraft has not yet been signed, and its future raises questions. At the same time, a possible contract between India and Russian aircraft manufacturers appeared on the horizon, in accordance with which an additional batch of Su-30MKI fighters could be built. What happens next is unknown. At the moment there is only one firm contract that Dassault can count on. The other two, representing no less interest, are open to question.
On the materials of the sites:
http://business-standard.com/
http://economictimes.indiatimes.com/
http://ria.ru/
http://lenta.ru/
http://bmpd.livejournal.com/
16 February, the Indian edition of Business Standard, which has repeatedly published news on the progress of the negotiations, announced new details of the current situation. With reference to an unnamed representative of the Indian military, it is argued that the military is already considering a possible rejection of further negotiations and the purchase of French aircraft. The main reason for this is the unacceptably high cost of the proposed equipment. Previously, Dassault was ready to sell fighters at 65 million US dollars per unit, but a year ago, prices rose significantly. Now each plane will cost the customer about 120 million. Thus, the total batch value of the Rafale 126 fighter jets will exceed all reasonable limits. Taking into account the costs of operation during the life cycle, the costs will reach $ 30 billion.
Also, the foreign press reports that instead of French fighters, India can purchase equipment from another country. The possibility of signing a new contract for the construction of Su-30MKI fighter jets, created in Russia and produced under license in Indian enterprises, is being considered. Thus, in mid-January, Indian Defense Minister Manohar Parrikar noted that the Russian aircraft is a strong competitor to the French. However, the final decision on this issue has not yet been made.
Against the background of Indian press reports, statements by Russian aircraft manufacturers appeared. On February 17, the Irkut Corporation press service spoke about plans for 2015. By the end of this year, the corporation must complete the supply of all components ordered by India earlier. During 2015, the Indian company Hindustan Aeronautics Limited should receive the last of 222 ordered kits for assembling Su-30MKI fighters. Thus, over the next few months, the next contract for the construction of the Russian aviation techniques.
At the same time, the management of Rosoboronexport made a statement regarding the possible continuation of military-technical cooperation with India. According to the deputy general director of the company, Sergei Goreslavsky, quoted by RIA Novosti, a new contract may emerge for the supply of an additional batch of Su-30MKI fighters, which are already in service with large numbers of Indian air forces. The Russian side is ready for the emergence of such an agreement, but for its appearance an appropriate decision by the Indian leadership is necessary. The request from him has not yet been received.
Recall that the negotiations between India and France on the delivery of Dassault Rafale fighter jets are continuing from the beginning of 126, when the French aircraft was declared the winner of the MMRCA tender. Since that time, the parties have not been able to reach an agreement and sign a contract. According to reports, the signing of the agreement is hampered by several disagreements. First, it was reported that it was impossible to agree on the procedure for the production and maintenance of equipment. India wanted to get a relatively small batch of French-made aircraft, and then expand the construction of the Rafale at its plants. France did not agree to this, since the proposed contract meant the provision of a guarantee not only for "French", but also for "Indian" aircraft. For a number of reasons, Dassault did not accept this order of maintenance.
Relatively recently, at the beginning of last year, a new problem appeared, this time of a financial nature. French aircraft manufacturers almost doubled the cost of their products, as a result of which the Indian Air Force would have to seriously increase its investment in upgrading its equipment.
The latest news about the possible rejection of the contract in conjunction with the events in Europe led to the emergence of a new version, designed to explain the actions of the Indian leadership. France for the past few months for political reasons refuses to transfer to Russia the previously ordered and built universal landing craft of the Mistral type. The fate of the second ship of this type also remains in question. Thus, it can not be ruled out that India no longer sees the point in concluding a deal with a supplier who can at any time refuse to transfer the ordered equipment. However, this version looks less believable than the above.
It should be noted that the current situation around the new contract is equally disadvantageous to both the French and the Indian side. Until recently, Dassault had no export contracts for Rafale fighter jets, and India needed a fairly large number of modern aircraft. It is known that to ensure the required combat effectiveness and effective confrontation with Pakistan, the Indian Air Force must have 45 squadrons of different composition. Currently, they include only 25 squadrons, with more than half of these units equipped with obsolete aircraft that will be decommissioned in the near future.
Thus, the current situation is not very pleasant for both parties, and the search for a way out of it can be associated with serious difficulties. Air India 2015 air show started on Wednesday in Indian Bangalore. It is possible that during this event any statements will be made regarding the protracted negotiations on the long-suffering contract.
India’s Rafale supply contract was to be the first export contract for this aircraft. Nevertheless, the negotiations dragged on for three years, because of which the first was a different agreement. February 16 France and Egypt immediately signed five contracts for the supply of various weapons and equipment. In the foreseeable future, the Egyptian military will receive the Rafale 24 fighter (16 twin Rafale B and 8 single Rafale C) F3 modifications with a guided weapon, as well as a Normandie frigate of the type FREMM and weapons for it. For planes, France will receive about 3,5 billion euros (about 145 million euros per unit) and 700 million will be paid for aircraft armament. The frigate, along with the training of personnel and service, will cost the payer 950 millions, the weapons for him will cost 400 millions.
Of great interest is the funding structure of these purchases. So, Saudi Arabia and the United Arab Emirates in order to help friendly Egypt have to make a deposit in 10 billion dollars. In order to promptly deliver the ordered weapons and equipment, half of the contract will be paid for with a loan from three French banks. The first payment on the contract may take place before the end of February or in early March.
Contracts involve the transfer of technology in the next few years. In this case, the frigate "Normandy", currently undergoing tests, and the first three fighters Dassault Rafale must be transferred to the Egyptian military already in the second half of the 2015 year. According to some reports, this technique will be shown to the customer in early August, during the opening ceremony of the reconstructed Suez Canal. The main deliveries will begin later and will continue until the end of the decade.
A specific feature of the first export contract for the supply of Rafale aircraft is the procedure for financing the transaction and the selection of goods. In fact, the aircraft for the Egyptian Air Force are bought with money from Saudi Arabia and the United Arab Emirates, these same countries have been actively involved in choosing a new technology for a friendly state. Thus, the new contract did not appear as a result of a full-fledged tender, however it became a landmark event in stories french fighter.
France hopes that the signing of a contract with Egypt will have a beneficial effect on the future fate of the Rafale aircraft. Paris is currently negotiating with Qatar, the subject of which are fighters of this type. At the same time, the most significant contract has a dubious future, since France still cannot reach an agreement with India, and the latter seems to be considering the possibility of refusing further negotiations.
At the moment, the further fate of the production of aircraft Dassault Rafale looks ambiguous. There is a contract for 24 aircraft for Egypt (at least the first three cars will be transferred from the French Air Force), and in the near future a similar agreement with Qatar may appear. At the same time, the largest and most anticipated contract for 126 aircraft has not yet been signed, and its future raises questions. At the same time, a possible contract between India and Russian aircraft manufacturers appeared on the horizon, in accordance with which an additional batch of Su-30MKI fighters could be built. What happens next is unknown. At the moment there is only one firm contract that Dassault can count on. The other two, representing no less interest, are open to question.
On the materials of the sites:
http://business-standard.com/
http://economictimes.indiatimes.com/
http://ria.ru/
http://lenta.ru/
http://bmpd.livejournal.com/
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