Business & Money

Brazil delays decision over Jas Gripen

Published: 21 Aug 09 08:36 CET
Online: http://www.thelocal.se/21598/20090821/

Dictionary tool Double click on a word to get a translation

Sweden's Saab is among the defence companies lobbying hard for a $4 billion deal to replace Brazil's ageing fleet of fighter aircraft.

The Swedes are joined by French and US defence companies that have stepped up their campaigns following reports that the Brazilian government is likely to delay its decision until October at the earliest.

France's Dassault, which is fielding its high-tech Rafale fighter, had been seen as the frontrunner up to now because of a guarantee to share all technology with Brazil - a key requirement of the tender.

But Sweden's Saab, offering a new generation of its cost-effective Gripen jet, and US aerospace giant Boeing, plugging its F/A-18 Super Hornet, have sought to blunt that advantage.

Saab president Ake Svensson told reporters in Sao Paulo on Thursday that not only would Gripen technology be offered, but Brazil stood to benefit by participating in future exports of the Swedish jet, which is poised to go into production.

Bob Kemp, Saab's sales and marketing director, said that because the supply chains for Dassault and Boeing were already defined, "we have a program and they have products" to offer.

Boeing's executive vice-president, Jim Albaugh, likewise stressed to journalists last week in Sao Paulo that the US Congress was being asked to allow an "unprecedented" level of technology-sharing with Brazil around the F/A-18.

At stake is not only the right to supply Brazil with 36 modern fighters to replace its 12 outdated French Mirage jets from 2014 - but also a chance to carry a winner's glow into a much bigger, $10 billion tender India has underway to buy 126 fighters.

The chosen aircraft will be the spearpoint of Brazil's air force for the next three decades.

Brazil, which struck a deal last year to buy four French submarines and co-develop a nuclear sub, is seeking the military clout to match its growing economic power and regional political ambitions.

Jean-Marc Merialdo, the head of Dassault's office in Brazil, told AFP on Thursday there was still some time to go before the winner was decided and a contract signed.

"Let's uncork the champagne once it's signed," he said, expressing caution.

He said he was confident the Rafale was the best option on the table, being more sophisticated and manoeuvrable than the F/A-18 and more powerful than the Gripen.

He also noted that France's technology-sharing was certain, while US technology - which applied to part of the Gripen, whose engine is made by General Electric - was subject to political approval by US lawmakers, who have resisted such transfers in the past.

Boeing, though, has pointed out that the Rafales were costly and none have yet been sold outside of France, while the F/A-18 has been taken up by the Australian air force.

Saab emphasizes that its Gripen is the cheapest option of the three, and is built to land on highways - a consideration for Brazil, which has to police the vast Amazon jungle.

Brazil's media had said an air force evaluation of the three jets was to be submitted to the government this month, with a possible decision announced on September 7 - during Brazil's Independence Day celebrations which, coincidentally or not, French President Nicolas Sarkozy had been invited to attend.

But the bidding companies said the air force report now would not be ready until next month, pushing back the whole process - and giving them more time to make their respective pitches.

AFP/The Local (news@thelocal.se)

What do you think? Leave your comment below.

Fark It! Digg This Facebook  Share everywhere
Send to a friend Printable version Twitter This

Your comments about this article:

The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.

03:41 August 22, 2009 by DavidtheNorseman
Ahh, lingonberrie, the YF-22 Raptor is a bit ahead of those...

That said I would think the Gripen's attributes would make it a most effective alternative to the aging F-18 and Rafale platforms (the JSF seems over priced for something that can't take on the YF-22...). The ease of repair modularity and ability to operate in limited back-up situations sounds good for a place where you don't have super-advanced facilities every 80km...

I thought the Indians were going with Mig-35's??
07:29 August 22, 2009 by Nemesis
I do hope Sweden gets this contract. It will be good for the Swedish economy.

If Sweden does nto get it, I hope that the contract goes to France, at least that way, it will help maintain European jobs.
18:51 August 22, 2009 by cgeffken
Lingonberrie,

Are you a bit angry? Hopefully Brazil has determined their needs without any outside or political interference and then chooses the plane that best fits those needs. Competition is good until bias, anger, and xenophobia become part of the mix.
22:41 August 23, 2009 by Michael84
oh oh, it doesn't sound good!
23:20 August 23, 2009 by voidplay
Nemesis

A good thought .... but hope it doesn't mean one other bribe scam for Brazil.

Anyway Rafale is good considering it's lack of American components, but a bad prize.

It seems to be politically motivated tender considering none of the thre planes make good sense for Brazil to buy.

Grippen and F/A-18 : American parts and ensuing drama and blackmail

Rafale : Damm expensive but neat plane
17:24 August 24, 2009 by tigger007
all this comparing which AC is the best,it's the PILOT that will decide which is the better AC.does brazil have an AC carrier? i think brazil should choose which AC is better for the pocket and the defence of their airspace. as far as the best AC of all is the f-15c(lingonberrie) and with the f-15k that is on the market now,the f-15 class jets will remain one of the best jets in the world. the f-15se soon to be on the export market will cause a stir! lingonberrie did america funk you with no ky jelly? you seem pissed LOL!
ADD YOUR COMMENT   (YOU MUST LOG IN OR REGISTER TO MAKE A COMMENT)
Business & Money headlines

Uppsala airport gets go ahead for low-cost flyers

The Uppsala military airport Ärna has been given the environmental all clear to begin hosting low-cost commercial flyers, the County Administrative Board announced in a statement on Friday. READ (1 COMMENT) »

Swedish firms increase advertising spend

Swedish firms have started to ease restrictions on advertising budgets, with new figures indicating an 18 percent hike in spending during the first two months of 2010. READ (1 COMMENT) »

Ikea and Google top student career wish list

Ikea and Google top student career wish list

Swedish students have named Google, Ikea and the foreign ministry as their dream places of work, according to a new survey. READ »

Skanska lands 'Ground Zero' rail contract

Skanska lands 'Ground Zero' rail contract

Swedish construction firm Skanska has secured a $434 million contract to help build the commuter train station at the site of the World Trade Centre in New York. READ (4 COMMENTS) »

Ikea offers repose in Paris metro marketing campaign

Ikea offers repose in Paris metro marketing campaign

Swedish furniture chain Ikea has adopted an unorthodox method to get its products into the mind's eye of discerning Parisians - by lining metro station platforms with living room furniture. READ (2 COMMENTS) »

Swedish house prices top two million barrier

The price of the average Swedish house has passed the two million kronor ($300,000) mark for the first time, new statistics show. READ (3 COMMENTS) »

Stockholm restaurant secures second Michelin star

Stockholm restaurant Frantzén/Lindeberg has been awarded a precious second Guide Michelin star just two years after serving its first meal. READ »

Carnegie traders charged over price fixing

Three former traders at Carnegie have been charged with illegal price manipulation carried out in the years before the Swedish investment bank's forced nationalization. READ »

King's pal seeks bumper payout for country estate

Torgils Bonde, a member of Sweden's high society, has raised eyebrows by putting his 2,800 hectare property up for sale for close to a record sum of 200 million kronor ($28.3 million). READ (3 COMMENTS) »

Riksbank off base with finance crunch rate hikes

The Swedish Riksbank has concluded that while everyone failed to see the impending finance crunch, it's own board was furthest behind when it raised interest rates just weeks before the Lehman Brothers bankruptcy. READ (5 COMMENTS) »

More Business & Money
Blog Update: On Swedish Business

18 February 08:56

Ryanair – when the going gets tough, will the tough get going? »

"Like all empires, Ryanair's will come to an end, but like a old punch drunk prize-fighter, will they see the upper cut before it is too late?" READ »

  • 05/2 16:37 Stockholm garbage collectors – an overpaid relic of a bygone age?There is a school of economic thought that opposes the CBA because it creates an insider-outsider workforce, raising wages for those with an over-protected job and levels of unemployment for those without. It is just one side of the argument and there are strong ones available to counter it, but a clearer example of the validity of this thesis is surely hard to find. READ »
  • 27/1 11:02 Saab’s last chance saloonI sincerely hope that Spyker/Saab can prove the army of doubters wrong and become a winning combination. But if not then at least the interim period can be used to ensure that the Swedish automotive industry can prepare for life after if this newest dawn proves fleeting. READ »

Find a new job in Sweden now
19/03 Power Dispatch Integration Support (m/f)
E.ON Energy Trading
Munich / Düsseldorf, Germany
19/03 ACCOUNTANT (M/F)
Page Personnel
Stockholm
19/03 Expert Financial Management on cost to a consultant assignment
Poolia AB
Stockholm
19/03 Expert Financial Management on project accounting
Poolia AB
Stockholm
19/03 Experienced Solutions Architect to lead our competence area
Tieto
Kista
19/03 Manager of Origination Western Europe (m/f)
E.ON Energy Trading
Düsseldorf, Germany
19/03 Product Configuration Specialist
Alfa Laval
Lund
19/03 Hydraulic Engineer - Global R&D Dish Care to Electrolux
Electrolux
Stockholm
19/03 Customer Service Business Backoffice Representative
Philips
Sweden All Locations
19/03 Service Delivery Manager
bwin Games AB
Stockholm

ALL JOBS »


Latest Business & Money news from Germany
Welcome to Adlon Hotel in Stockholm
A perfect location both for business and pleasure. Centrally located, with atmosphere.
www.adlon.se
Winter archipelago tours
Visit Stockholm's beautiful archipelago. Great boat tours for all preferences.
MORE INFORMATION
Doctor of Psychology
Therapy in English

David Schultz PsyD
Individuals & couples
In Stockholm in person or by phone or video conferencing
www.anxiousorblue.se
Play football in Stockholm
Kick-off the new football season with LFC, Stockholm's premier English-speaking football club.
MORE INFO
JOB: Digital Ad Operations Coordinator - Stockholm
The Local seeks a digital advertising specialist to administer advertising operations for our network of sites
FULL JOB DETAILS
Lovely Weekly Apartment Rental-Stockholm
Charming apartment in Lidingö that overlooks the forest, sea and city! 60 sq m, 2 rooms, sleeps 2-4 people. 7969 sek/week.
MORE INFO
Counseling in English Individuals & Couples - Stockholm
Beth Rogerson PhD - Clinical, Marriage & Family Therapist
Click or call 08-5580 1266 now
JOB: Sales manager - Stockholm
The Local is seeking a talented media sales professional to drive our online advertising sales
FULL JOB DETAILS
Visiting Stockholm?
Then you'll find The Local's new Stockholm Section useful. Find pics, guides, news and lots of useful information about Stockholm.
www.thelocal.se/stockholm
The Local's new Marketplace
Find products and services that are specifically focused on English speakers living in Sweden!
FULL DETAILS