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Decision on combat jet purchase may come soon: Brazil
by Staff Writers
Brasilia (AFP) Feb 15, 2012


Defense Minister Celso Amorim said Wednesday that Brazil may make a decision on awarding a multi-billion-dollar contract for 36 fighter jets in the first half of this year.

The Rafale, made by French firm Dassault, is competing against US aviation giant Boeing's F/A-18 Super Hornet and Swedish manufacturer Saab's Gripen jet for the contract valued at between $4 and $7 billion.

"The decision may be made in the first half of this year," Amorim told reporters after a seminar on defense policy.

Last year, Brasilia delayed a decision on the purchase following a major budget cut.

"I think the fighter jets are needed, Brazil needs them for its defense," the minister said. "The president (Dilma Rousseff) is fully aware of this. Now the exact time requires a conjunction of factors... It is up to the president to decide."

A Brazilian government source told AFP that a decision was unlikely before the outcome of the French presidential elections in May.

The source also recalled that Rousseff was due to travel to the United States April 9-11 for talks with President Barack Obama.

Amorim said his recent trip to India, a country which last month selected the Rafale over a rival from the Eurofighter consortium, should not be seen as confirmation that Brasilia was leaning toward the French fighter jet.

"It is very important that Brazil exchanges information, but it does mean that the decision will be the same" as that taken by India, he noted.

New Delhi last month selected the Rafale over the rival Eurofighter, giving Dassault the right to enter exclusive negotiations with India for 126 fighter jets estimated to be worth $12 billion (nine billion euros) after it lodged a lower bid than its European rival.

Amorim stressed that planned budget spending cuts this year would not affect the timetable for the decision because the contract will not involve expenditures for this year.

Brasilia is insisting on technology transfer and the possibility of assembling the jets in this country, conditions that appear to favor the Rafale.

The Rafale international consortium is made up Dassault, engine maker Snecma as well of defense and aerospace giant Thales.

The consortium maintains that it alone offers unrestricted technology transfer.

In December, French Prime Minister Francois Fillon said during a visit to Brazil he was confident of selling Rafale fighter jets to the South American nation because the aircraft's technology cannot be matched.

The multi-role jet was designed to have the ability to take on air-to-air combat, reconnaissance flights and nuclear bombing missions.

It has special technology and uses composite materials to give it a very small radar profile and a combat awareness system allowing it to engage multiple targets at up to 200 kilometers (120 miles) away.

The Rafale was used in the recent war in Libya, but the fighter has repeatedly lost out in tenders in countries including Singapore, South Korea, and Morocco.

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Brazil hopes for cheaper FX-2 fighter deal
Brasilia, Brazil (UPI) Feb 14, 2012 - Brazil hopes the current economic downturn will give it an edge over competing suppliers and help secure a cheaper deal for its purchase of up to 36 fighter jets.

Brazil is looking to replace obsolete fighter aircraft, including French Mirage jets, at the high end of its air force inventory as part of the so-called FX-2 fighter competition.

Six major contenders -- Boeing's F/A-18 E/F Super Hornet, Dassault's Rafale, EADS' Eurofighter, Lockheed Martin's F-16 Block 60, Saab's JAS-39 Gripen NG and Sukhoi's SU-35 -- are in the race to win a contract that is variously valued at up to $8 billion.

Brazilian negotiators reportedly received French offers of discounts of up to $2 billion in the total price if Brazil chooses Rafale as its jet fighter of choice.

Other manufacturers are in the competition with offers of other incentives and "sweeteners" -- including greater technology transfers in the assembly and manufacture of the chosen jet.

Brazil hopes the fighter jet deal will enable it to build the foundation of an advanced aircraft manufacturing industry. Brazilian aircraft manufacturer Embraer is competing with several of the FX-2 contenders in other fields, including passenger jets and tactical military transport aircraft.

Brazil announced its intention to buy replacements for its aging air force jets three years ago but delayed a procurement decision to this year. France was considered an early favorite to win the multibillion-dollar contract but the Boeing Co. has begun identifying Brazilian industries it could employ if it wins the contract.

Some Brazilian commanders were quoted to be in favor of signing up for JAS-39 Gripen NG, arguing Saab offered attractive technology transfer options.

Brazil retired a squadron of Mirage IIIs it bought in the 1980s and replaced them with 12 second-hand Mirage 2000Cs starting 2006. The top end of the air force inventory is widely considered to be obsolete and ready for replacements.

Analysts said the FX-2 competition was mainly delayed because of domestic policies and Brazil's transition from former President Luiz Inacio Lula da Silva to President Dilma Rousseff. But economic conditions and a burgeoning global defense market fighting for customers seem to be working in Brazil's favor.

Brazilian officials said the country wasn't in a great rush to enter a deal if it could secure better price and technology transfer terms.

The military commanders are comfortable with the country's mid-tier inventory which includes Brazilian-Italian AMX subsonic light attack jets, Brazil-made Super Tucano COIN surveillance turboprops and refurbished P-3 Orions for coastal patrols.



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