The k2p blog

Though David Cameron and the other leaders of the four country consortium which manufactures the Eurofighter Typhoon (UK, Germany, Spain and Italy) have all been somewhat whiny about the selection of the French (Dassault) Rafale for the 126 aircraft Indian MMRCA deal it seems highly unlikely that the Typhoon can make a comeback.

The life-time cost of the contract is evaluated at about $20 billion with an initial contract value of about $10-12 billion. The ToI reports that the Rafale deal was evaluated as being $5 billion (about 25%) cheaper than the Eurofighter. Though the evaluation probably considers a total of about 189 aircraft (126 +63 in phase 2) it still represents a life-cycle cost difference of some $26 million per aircraft  and not just the $4-5 million lower initial acquisition cost per aircraft (bid-price). It seems almost impossible for the Eurofighter to match this difference. The first 18 aircraft have to be delivered in “fly-away” condition from mid-2015 onwards. The next 108 aircraft will have to be delivered from HAL in India at about 6 per year initially going up to 20 per year.

Exclusive negotiations between Dassault and the Indian Ministry of Defence start next week.

Times of India:

It was the “substantially higher cost” of acquiring and operating the Eurofighter Typhoon that led to its ejection from the almost $20 billion MMRCA (medium multi-role combat aircraft) project to supply 126 fighters to IAF. 

“The French Rafale jet, the eventual winner, beat the Typhoon hollow both in terms of life cycle costs and direct acquisition costs. The entire MMRCA project cost would have gone up by around Rs 25,000 crore if Typhoon had been selected over Rafale,” a top defence ministry source said on Thursday. Given all this, MoD has ruled out the possibility of “any comeback” by Typhoon despite carping by the four nations (UK, Germany, Spain and Italy) backing it, and will begin “exclusive and extensive negotiations” with Rafale-manufacturer Dassault Aviation next week. “The actual contract for the complex project should be ready for inking by September-October,” said a source. …

… Both Rafale and Typhoon had been found “compliant” on all the 643-660 technical parameters laid down to meet specific operational requirements of India, after gruelling field trials by IAFtest pilots spread over two years. 

… “We went by the book, first in the extensive technical evaluation and now in the meticulous commercial evaluation, without any external factors coming into play,” said the source. 

For one, the “life cycle cost” of operating the Typhoon over a 40-year period, with 6,000 hours of flying, was found to be “higher” than Rafale after extensive calculations of flight costs, spares, maintenance and the like. “The life cycle costs were actually the tool to determine who was L-1 (lowest bidder),” he said. 

For another, the difference in the ‘direct acquisition cost’, which will actually be used to ink the contract, was even bigger. “The Typhoon’s commercial bid was way too high. Rafale was the clear L-1 in both life cycle as well as direct acquisition costs,” he added. …..

Tags: Dassault Rafale, Eurofighter Typhoon, India, MMRCA competition, Rafale, Typhoon

This entry was posted on February 10, 2012 at 7:32 am and is filed under Aviation, Defense, India. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.