Rafale is a twin-jet combat aircraft capable of carrying out a wide range of short and long-range missions, including ground and sea attack, air defence and air superiority, reconnaissance, and high-accuracy strike or nuclear strike deterrence. The aircraft has been developed for the French Air Force and Navy. 61 aircraft were ordered (36 for the air force and 25 for the navy). The Rafale M entered service in 2001, and ten aircraft are operational on the Charles de Gaulle aircraft carrier. Rafale B and C entered service with the French Air Force in June 2006, when the first squadron was established. The second air force squadron was set up in 2008.
President Luiz Inacio Lula da Silva settled on the Rafale after Dassault reduced the total price to $6.2 billion from $8.2 billion, Folha de Sao Paulo reported, without specifying how it obtained the information.
The other two contenders in the bidding process are the Gripen NG made by Sweden's Saab (SAABb.ST) and the F-18 made by the U.S.-based Boeing Co (BA.N).
Dassault declined to comment. Brazil's defense ministry said it still has not concluded a report on the bidding process detailing its recommendation for Lula.
A spokesman at the president's office did not comment.
A cabinet member told Reuters last month that Lula would choose the Rafale but still wanted to negotiate a lower price.
Latin America's largest country is seeking a generous technology transfer offer and local assembly. The deal could eventually rise to more than 100 aircraft.
Even with the alleged discount, the Rafale price tag would top Boeing's $5.7 billion and Saab's $4.5 billion, Folha said.
Brazil has signed a strategic defense agreement with France worth billions of dollars, including the local assembly of helicopters and conventional and nuclear-powered submarines.
(Reporting by Raymond Colitt; Additional reporting by Eduardo Simoes in Sao Paulo; Editing by Gerald E. McCormick)
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