Saab wins $4.5bn Brazil fighter jet contract

**xinhui** · 20 Dec 13,, 05:55

Saab wins $4.5bn Brazil fighter jet contract
Saab JAS 39 Gripen jet The contract win is a major boost for Sweden-based Saab as it looks to take on rivals like Boeing
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Aerospace and Defence
BBC News - Saab wins $4.5bn Brazil fighter jet contract

Shares in Sweden's Saab jumped almost 30% after it won a $4.5bn (£2.7bn) deal to supply 36 fighter jets to Brazil.

The deal is one of the most valuable ones in emerging markets and Saab had faced competition from rivals Boeing and Dassault Aviation.

Many had expected Boeing or Dassault to emerge as the winner.

The BBC's Gary Duffy in Sao Paulo says Boeing's cause was not helped by a recent row between the US and Brazil over spying allegations.

The US National Security Agency (NSA) has been accused of intercepting emails and messages from President Dilma Rousseff, her aides and state oil company, Petrobras.

David Fleischer, a political scientist at the University of Brasilia, said that Ms Rousseff "had been favouring the Boeing plane and a lot of people thought she would announce her decision during her state visit to Washington".

"Boeing was very close but then the NSA booted them out of the air," he said.

The spying allegations were made by Rio-based journalist Glenn Greenwald, who obtained secret files from former NSA contractor Edward Snowden.

The claims led to Ms Rousseff cancelling her state visit to Washington, initially planned for October this year.

Brazil had delayed the decision on awarding the contract for many years.

Defence Minister Celso Amorim said the authorities, "took into account performance, the effective transfer of technology and costs - not just of acquisition but of maintenance" while finalising the supplier.

Brazil's decision comes just weeks after Boeing lost out to Lockheed Martin in the run to win a multi-billion dollar fighter jet deal in South Korea.

Boeing had been considered a front runner in that deal as well, until Seoul decided to restart the tender process.

While Saab's shares jumped almost 30% to a five-year high, Dassault's price fell more than 7%. French President François Hollande personally lobbied for Dassault's Rafale jet last week during a state visit to Brazil.

The Rafale has yet to win an order outside France, although it remains front runner to secure a contract with India.

**Doktor** · 20 Dec 13,, 09:00

What does this mean for Bombardier?

**xinhui** · 20 Dec 13,, 18:15

not sure Bombardier has something in that caliber to offer.

**Blademaster** · 20 Dec 13,, 18:21

This might be good news for India since Dassault is now afraid of losing the order with India and Dassault might be more amenable to acceding to some of India's demands.

**Doktor** · 20 Dec 13,, 18:33

Originally Posted by xinhui

not sure Bombardier has something in that caliber to offer.

There is mention of tech transfer. On top of my head Bombardier came as a side malefactor.

**Firestorm** · 20 Dec 13,, 18:43

Originally Posted by Doktor

There is mention of tech transfer. On top of my head Bombardier came as a side malefactor.

I think you mean Embraer. Bombardier is Canadian.

Embraer might get involved in manufacturing the planes locally, but 36 looks like too small a number to set up local manufacturing for. They'll probably just buy them off the shelf. Does anybody know if this is just the initial order, with more to follow?

**Doktor** · 20 Dec 13,, 18:49

Originally Posted by Firestorm

I think you mean Embraer. Bombardier is Canadian.

My bad.

**xinhui** · 20 Dec 13,, 18:50

LOL, that make sense. :-)

**YellowFever** · 20 Dec 13,, 18:56

Seems like a poor choice unless they're planning on scraping the Sao Paulo.

What am I missing?

**YellowFever** · 20 Dec 13,, 19:05

They must really be pissed about the NSA thing.

I don't know how much life the Skyhawks has left and navalizing 36 Gripens seems to be a massive waste of money unless further orders are on the way?

Unless there is another competition for platforms for the carrier?

**Stitch** · 20 Dec 13,, 20:24

Thanks, NSA, for screwing up not one, but TWO potential multi-million dollar arms deals!

**zraver** · 21 Dec 13,, 14:10

Originally Posted by YellowFever

Seems like a poor choice unless they're planning on scraping the Sao Paulo.

What am I missing?

Not sure the Sao Paulo can operate Hornets. It was designed to operate early 60's era jets. Not modern ones. The tender was for the BAF not the BN.

**Parihaka** · 21 Dec 13,, 18:09

Originally Posted by Stitch

Thanks, NSA, for screwing up not one, but TWO potential multi-million dollar arms deals!

Massive deals have gone through for US companies specifically because of CIA/NSA information assisting the US companies and this level of industrial spying has been conducted by the CIA since at least the early eighties. The lose of a couple of contracts is nothing compared to the inside information provided in contract negotiations over the years.

**Gun Grape** · 23 Dec 13,, 11:21

The big thing that killed Boeing and Dassault was that none of their planes come with this option

**jlvfr** · 25 Dec 13,, 15:41

Originally Posted by Firestorm

I think you mean Embraer. Bombardier is Canadian.

Embraer might get involved in manufacturing the planes locally, but 36 looks like too small a number to set up local manufacturing for. They'll probably just buy them off the shelf. Does anybody know if this is just the initial order, with more to follow?

They'll (almost certainly) be prime contractors for the assmembly, as well as future major maintenance needs.

Originally Posted by YellowFever

They must really be pissed about the NSA thing.

I don't know how much life the Skyhawks has left and navalizing 36 Gripens seems to be a massive waste of money unless further orders are on the way?

Unless there is another competition for platforms for the carrier?

I very much doubt that. Took them years to decide on a far-more-needed fighter for the air force. A new carrier-plane, for a 50+ year old carrier for which they have a grand total of 12 upgraded A-4s?...