Dassault’s success in being selected as the lowest bidder for the Indian MMRCA competition with the Rafale aircraft seems to be having a significant impact in other deals. The Rafale is now the most likely winner of the Brazilian contract for 36 aircraft. The aggressive pricing by Dassault and the active (and very effective) lobbying by the French government is a potent combination. The Rafale has not yet been sold outside France and the Indian and Brazilian deals are critical for the future export life of the Rafale.
In Brazil the Rafale is competing against Boeing’s F-18 and Saab’s Gripen. Though Saab is also desperately looking for export orders for the Gripen, it is unlikely that it can afford to drop its prices by the levels that Dassault obviously can. Boeing on the other hand is not so dependent on the Brazilian orders and is unlikely to drop its price by very much – especially since they will not wish to disturb the already very high price levels they enjoy for exports to the Middle-East. And that probably leaves the Rafale sitting very pretty.
Svenska Dagbladet reports (freely translated):
The k2p blog 