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King calls on Brazil to plump for Swedish jet

Published: 25 Mar 10 09:12 CET | Print version
Online: http://www.thelocal.se/25724/20100325/

Sweden's King Carl XVI Gustaf called on Brazilian president Luiz Inacio Lula da Silva to make a final push for Swedish aircraft to win out over French and US rivals as pressure mounts over the destination of the multi-billion-dollar deal.

The deal to supply Brazil with sophisticated fighter jets was in its high-stakes final phase on Wednesday, with Lula under intense pressure ahead of his decision.

Brazilian officials say the contest should be decided by the end of next week.

Lula has already expressed a strong preference for France's Rafale jet in the competition.

But he said after his meeting with the Swedish monarch that "the final reports have not reached me" and he could only make his decision once Brazil's defence council had convened to give its recommendation.

The Brazilian president has already asserted that he would have the final word, and that his choice would be based on political considerations more than the technical merits of each aircraft.

"We want technology to build the aircraft in Brazil, and for Brazil to be an exporter of these jets," he said.

That priority has appeared to sideline the US jet in the running, the F/A-18 Super Hornet made by Boeing. The Brazilian government has emphasized instances in the past when the US Congress has blocked Brazil from acquiring or exporting US technology.

The other two aircraft competing are the Rafale, an ultra-modern semi-stealth omnirole fighter made by France's Dassault group, and Sweden's versatile and easily maintained NG Gripen by Saab.

Brazil is looking to initially buy 36 new fighters, with an option to add nearly 100 more in the future.

The value of the deal has not been stated, but Brazilian media estimates range from four billion to $10 billion.

French President Nicolas Sarkozy has put his prestige fully behind the Rafale, issuing a joint statement with Lula last September saying Brazil was already in exclusive negotiations to buy the jet.

But in the teeth of opposition from Brazil's air force, which is plumping for the much cheaper Gripen, Lula has had to backtrack and say the tender was still wide open.

His minister for strategic affairs, Samuel Pinheiro Guimaraes, wrote in the latest issue of a French defence journal that acquiring the Rafale would begin a "beautiful adventure."

A technology-sharing deal would greatly advance Brazil's scientific and trade prowess, he wrote, while the two-engine Rafale was suited to patrolling Brazil's vast territory.

The head of Saab, Åke Svensson, told the Swedish news agency TT in Brasilia that Lula's decision to base the selection on political aspects made it "very difficult to predict the outcome."

He said that the Gripen had come out on top in the Brazilian air force's price and technical evaluation, but that might not be enough to secure the deal.

If Brazil does go with the Rafale, it will be the first sale of the jet outside France.

French officials hope a Brazilian success could boost the Rafale's chances in other tenders, including in India and Kuwait. Unconfirmed reports have suggested Dassault significantly cut its asking price to overcome reservations in Brazil.

Kuwaiti lawmakers have been watching the negotiations keenly, and on the weekend an Islamist bloc in Kuwait's parliament warned its government against
a planned purchase of Rafales, deeming the deal "suspicious."

AFP/The Local (news@thelocal.se)

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12:26 March 25, 2010 by Nemesis
Well done that king.

Hopefully Sweden will get the contract and secure jobs for Sweden.
13:06 March 25, 2010 by Audrian
Should not the king command the brazilian president, a commoner, to give business to Sweden? Sorry, forget about the question, I forgot that we are in 21st century!
22:34 March 25, 2010 by karex
If Lula ignores the Air Force he most likely will end up with an unruly military on his hands. Last time this happened the country ended up as a military dictatorship...

Don't expect that extreme again, but they could make his political life a nightmare and ruin any hopes for a re-election... Lula needs to watch his step now. Despite some good deeds, he has made some major blunders and public opinion is not so overwhelmingly in his favor anymore. One such blunder that I can remember was his not very decisive stance against Chaves which in the eyes of the populous made him look like a wimp. Not a good move in a predominantly male chauvinistic country...
23:11 March 25, 2010 by studentecon
Lula is not so effective when it comes to defend the interests of brazilian companies and brazilian people on the international arena. He is surfing on a wave of popularity because of economic performance ( a harvest that was an heritage from the former social democrat government). Bolivia, Venezuela and Ecuador from time to time nationalize brazilian companies hurting brazilian investors and foreign investors as well. And he is now freaking out because of the WTO resolution against U.S farmers giving Brazil a chance to retaliate but he is very relutant in start taxing american products. If U.S had a chance to extra tax brazilian products they wouln´t think twice.

Although the armed forces are not strong as they used to be they´re still play a significant role in the political debate and is a very sensitive issue dealing with them. However both Grippen and Rafale are good options, it´s like choosing between a Volvo and a Peugeot, the Air Force will be happy with any alternative.

By the way Lula himself ended up in jail for his "subversive" panflets about labour rights during the dictatorship. Some say that he was tortured by the armed forces It´s hard to say that he will play the part of a puppy poodle and follow the decision of the Air Force. If I have to bet, I would bet on the French Rafale.

I also bought stocks from Dassault Aviation the manufacturer of Rafale and stocks from EMBRAER the 4th world´s largest aircraft company (Brazilian by the way) that is going to be the transfer technology hub and probably assemble these fighter jets. More information on Embraer www.embraer.com.br

What is your bet?
00:19 March 26, 2010 by americanska
studentecon - you are fullll of hot air.

tariffs are not good practice. what on earth do you have against US farmers? they are successful because they are productive. but hey, let's allow the brazilian government to steal R&D investments from private companies rather than purchase them like any other small farmer in the US.

that will be great for brazilian farmers.....or least for a few men of power.

back on subject - the Rafale is a terrible aircraft. Not even the French Airforce is satisfied. It would be 100% political if they were to select the Rafale.
10:40 March 26, 2010 by homestead
"The Brazilian president has already asserted that he would have the final word, and that his choice would be based on political considerations more than the technical merits of each aircraft."

I'd hate to be a Brazilian fighter pilot flying a plane chosen for political considerations going up against someone in a plane chosen for it's technical merits.
13:12 March 26, 2010 by americanska
right on homestead. if they wanted the best plane out there they can afford they would go for and F16. But my impression is they will never chose american for political reasons. The gripen next generation is the best choice as is has a lot of us tech.

the rafale is the worst choice for pilots but i'm sure the best for political reasons.
13:33 March 26, 2010 by studentecon
@americanska

(First don´t take it personal)

Hey bro! come´on - "what on earth do you have against US farmers? they are successful because they are productive." You´ve gotta be kidding, right?

Everybody know that the U.S farmers receive money transfers from the Government, otherwise they could make the ends meet. And this is harming competition. For R&D you might be talking about the patents over AIDS drugs and why Brazil has been given decent treatment for people with AIDS. The issue went to WTO and to the World Health Organization and they won.

Talking about R&D in the tropics, Brazil has produced more patents in agricultural science than USA over the last 3 years, see the EMBRAPA (www.embrapa.com.br) company website. The ethanol production plants came from Brazil to operate in the U.S Midwest corn belt.

Back to the topic

Let´s take a look on what the potential contenders in the region have:

Colombia : Mirage(Dassault) and Israeli made (Kfir)

Chile: F-16 (Newest version in the region)

Venezuela - Sukhois (Russian) and F-16

Argentina: Mirage (Dassault) and A-4

Brazil so far has: Mirage(Newest generation in the region), F-1 Skyhawk( for the aircraft carrier, yes we do have an aircraft carrier), F-5 Tiger

Peru, Ecuador, Bolivia and the rest of the region, you only need Rambo so we can disregard them as potential ofenders.

The bid is to buy 24 fighter jets now and extend the contract up to 100. There is sinergy between Dassault and Embraer, and France has been proved a realiable partner over the years. Since the acquisition of the first Mirage in the 70´s.

The Lockheed F-16 is a good aircraft but you can´t do anything without the U.S congress permission. And from time to time they can simply denied selling reassemble parts. like they did with the F-16 from Venezuela.

The Grippen would be a new contender, no one has saab´s grippen in the region but Sweden has never looked Brazil as trade partner or political partner, as much as France, and there will be a cost for this. But it is the "wanna be" jet for every pilot and it´s costs are very attractive.

But we must keep in mind that this is not a simply toy acquisition. The relliability of the seller, the qualitiy of the jet, the geo-political relationship, economic ties and so on. The Brazilian Air Force plan to operate those jets for next 20 years and this is the first time they are able to choose. The first jets F-5 came to brazil as a "donation" from USAF in the 60´s and they are still operating. The French Mirage in the 70´s were the only jet we could afford since the U.S didn´t want to sell us F-14 or F-15. In the 90´s the got second-hand Skyhawk from Kuwait and now almost 10 years it´s time to make a good decision. But this is not like the other countries that they buy the jet and that´s it, for the very first time a country is demanding transfer tecnhology and this changes everything.

Waiting for the next chapters!!! =D
13:57 March 26, 2010 by JerryGefner
It seems President Lula should be briefed as to the Royal Family relationship with Brazil and its historical tradition.

The Royal Family Foundation over the years support to alleviate poverty in Brazil has shown the respect that Sweden has given to Brazil over the years.

President Lula is aware of the excellent support that Swedish companies give to local Brazilian population as seen by Scania do Brasil at Sao Bernardo do Campo, the center of Brazilian Unionist and residency of President Lula that he is well aware.

It is ncessary that Presient Lula should be briefed as to historical tradition of Sweden in Brazil and its good intentions.
14:06 March 26, 2010 by studentecon
@JerryGefner

I hope he is gonna take this into account either. But I´m afraid this royal support is too small compared to what french companies and ngo´s have done so far.
15:01 March 26, 2010 by munched
Swedes, Please! The Gripen was doomed from the begining. You had pilots punching out over downtown Stockholm and thank goodness he wasn't pointed at the water or it would have crashed into Sergels Torg. As it was, it crashed into the water. When Saab lost the Norwegian contract, everybody was so busy whining they forgot that only the week before there was a Gripen on the front pages with it's nose on the tarmac because of failed landing gear. What about all the groundings recently in the press. Let's conveniently forget about those too huh? Not to mention that it's money that talks and bullshit walks and the F16 has not only bags of money behind it but if it was 20 years old with squeeky brakes, it's still proven a better craft than Saab anything could hope to be.
20:40 March 26, 2010 by louis2010
Karex: If Lula ignores the Air Force he most likely will end up with an unruly military on his hands. Last time this happened the country ended up as a military dictatorship

WRONG, Wrong, Wrong! The Military in Brazil is not seeking power to govern Brazil. All the military want is good salary, There is no agreement among the Brazilian armed forces as to overthrow the dully elected president. Brazil has had 5 Democratic governments for 25 years. The Military even if it wanted to deliver a coup d'etat , this would be unworkable since the population of 180 million people would never accept it. The dictatorship in Brazil is dead and was never harsh anyway if compared to Argentina, Germany, Spain, Italy etc...

Karex:

Don't expect that extreme again, but they could make his political life a nightmare and ruin any hopes for a re-election... Lula needs to watch his step now. Despite some good deeds, he has made some major blunders and public opinion is not so overwhelmingly in his favor anymore. One such blunder that I can remember was his not very decisive stance against Chaves which in the eyes of the populous made him look like a wimp. Not a good move in a predominantly male chauvinistic country...

Are you a lunatic? Lula has already served his second term and cannot run for a third term. He is barred by the constituition! His electorate are backing Chaves because the bolivarian revolution is a revolution of the poor. Lula was not elected by the Burgeois in Brazil. Te poor and illiterate put him where he is today. Brazil is not a male chauvinistic country, Brazil has adopted in his constituition full rights to gays, women, people with disabilities, BY the way the country is so free you can even walk down the beach topless or bottomless, Have you ever seen a Brazilian Bikini? Karex, I appreciate your opinion on the situation but I had to correct you in the name of accuracy!
21:18 March 27, 2010 by JerryGefner
If Sweden would define the Sustainable use of Saab Aircraft, who are the Brazilian enemies and the viability, the sale would be closed in favour of Sweden.

Maybe, we need a NGO, Swedish or Brazilian?
02:34 March 29, 2010 by wenddiver
Technology transfer- Oh no, run away! You do not build advanced armaments, so somebody else can make cheap knock offs and undermine your market.

Lula is Crazy Chavez's poodle, so really there is little chance of him standing up. Political considerations indeed. Who will pimp for the former Soviet block for a buck-FRANCE. Anybody who will buy her inferior products can have her support.
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