DTN News - EGYPT DEFENSE NEWS: Egypt Opts For The Rafale

DTN News - EGYPT DEFENSE NEWS: Egypt Opts For The Rafale
*France is to sell 24 Rafale fighter jets to Egypt along with a naval frigate and missiles in a deal worth more than €5 billion, President François Hollande said Thursday, the first time a foreign buyer has been found for the French-built warplanes

Source: DTN News - - This article compiled by K. V. Seth from reliable sources Dassault Aviation & France 24
(NSI News Source Info) TORONTO, Canada - February 13, 2015: French Defence Minister Jean-Yves Le Drian will travel to Cairo Monday to sign the final agreement with Egyptian President Abdel Fattah al-Sisi, Hollande said in a statement issued by his office.

“The Rafale fighter jet has won its first export contract,” Hollande said, confirming a report in French daily Le Monde published earlier Thursday that said a deal had been agreed.

“The Egyptian authorities have just let me know their intention of acquiring 24 Rafale planes, a multi-mission frigate as well as related equipment,” he added.

These last two items are believed to be a FREMM warship, currently used by the French and Italian navies, and a number of short and medium-range missiles built by MBDA.

The deal follows years of failed attempts by France to export the Rafale, described as one of the most effective and sophisticated fighter jets in the world, but also one of the most expensive.

A potential deal to sell the multipurpose warplanes to Brazil  fell through in 2013 when the country chose jets made by Sweden’s Saab instead.

And although manufacturer Dassault Aviation, which launched the Rafale more than a decade ago, has been in exclusive negotiations with India for the last three years, a final deal has yet to be signed.

The French government has reduced its order for the planes to 26 Rafale jets over the next five years, down from 11 a year so far, putting Dassault under further pressure to find a foreign buyer.

Credit facility

A potential deal with Egypt was first muted in November last year during Sisi’s state visit to Paris, according to Le Monde, where discussions were held about replacing Egypt's fleet of 18 Mirage jets, also built by Dassault.

Though funding issues were believed to be a concern, French business daily Les Echos reported earlier this month that the two countries were discussing using a credit facility – arranged by French credit insurer COFACE and involving some of France’s biggest banks – to finance as much as 50 percent of the sale.

France has a history of military hardware deals with Egypt: as well as being the first foreign buyer of the Mirage jet in 1981, Cairo signed a contract last year to buy four French-built naval frigates in a deal worth €1 billion.

Concerns over the rise of jihadist groups in neighbouring Libya and in Egypt’s Sinai province have also seen the countries establish closer ties in recent years.

*Link for This article compiled by K. V. Seth from reliable sources Dassault Aviation & France 24
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DTN News - BRAZIL DEFENSE NEWS: Brazil Chooses Swedish Fighter Jet In $4.5B Deal

DTN News - BRAZIL DEFENSE NEWS: Brazil Chooses Swedish Fighter Jet In $4.5B Deal

*President Dilma Rousseff Announces Brazil Is Buying Sweden'sSaab Gripen Jet Fighters

International Business Times

*UPDATE 2-Saab wins Brazil jets deal after NSA spying sours Boeing bid

Reuters

*The Aviationist » SAAB Gripen wins Brazil fighter jet bid. Boeing ...

theaviationist.com/2013/12/18/gripen-has-won-in-brazil/

Source: DTN News - - This article compiled by K. V. Seth from reliable sources By Bradley Brooks - AP
(NSI News Source Info) TORONTO, Canada - December 18, 2013: RIO DE JANEIRO (AP) — Brazil's government said Wednesday that Sweden's Saab won a long-delayed fighter jet contract initially worth $4.5 billion that will supply at least 36 planes to Latin America's biggest nation.

The decision comes as Brazil seeks to ramp up its defense capabilities to patrol a porous land border that's more than 9,300 miles (15,000 kilometers) long, much of it covered by jungle, over which arms and drugs easily flow. Brazil is also seeking better protection for massive offshore oil fields that it has discovered in recent years.

Brazil's Defense Minister Celso Amorim said that the choice after some 15 years of debate was made after "careful study and consideration, taking into account performance, transfer of technology and cost, not just of acquisition but of maintenance. The choice was made on the best balance of these three factors."

Swedish Foreign Minister Carl Bildt wrote on Twitter that the decision was "a tribute to Swedish technology and competitiveness."

The decision to buy the Swedish jet over Boeing's F-18 Super Hornet or France's Dassault Rafale came as a surprise to many. The French jet had been favored by former Brazilian President Luiz Inacio Lula da Silva, while current leader Dilma Rousseff had been said to favor the Boeing bid.

Some analysts said the Boeing jet was hurt by the fallout over revelations six months ago that the U.S. National Security Agency carried out a massive espionage program that directly targeted Rousseff's own communications.

That led to Rousseff canceling a planned state visit to Washington in October.

"Dilma had been favoring the Boeing plane and a lot of people thought she would announce her decision during her state visit to Washington," said David Fleischer, a political scientist at the University of Brasilia. "Boeing was very close but then the NSA booted them out of the air."

Others, however, contend the Swedish jet, which was favored by Brazil's Air Force, according to an internal assessment leaked to the Folha de S.Paulo newspaper in 2010, was always going to win the competition and that the decision had little to do with the NSA spy revelations.

Alexandre Barros, a political risk consultant with the Brasilia-based firm Early Warning, said many in the government had long opposed Boeing because the company's bid was less flexible in terms of technology transfers than the two European plane makers and also because they were wary of becoming indebted to Washington.

"The Americans tend to think that if you buy arms from them you are automatically their allies," said Barros. "Brazil doesn't want that kind of link."

He said that Brazilian officials long prized their autonomy from the U.S., and as the main power in South America they don't want to be in the position of being perceived as having to support American policies on the continent, particularly in Colombia and Venezuela. Part of the draw of Saab's bid was that Sweden doesn't have any political clout in the region.

Regardless of the main reasons, Brazil's military hopes the government making the decision after some 15 years of debate will lead to advances in its defense capabilities.

Brazil in the mid-1980s had the largest defense industry in the developing world. It became the world's eighth-largest arms exporter amid strong demand for its armored personnel carriers, reconnaissance and anti-aircraft vehicles, troop carriers and rocket launchers.

However, the industry went into a tailspin when the Cold War ended and demand for weapons declined. In 1990, Brazil's two largest arms manufacturers, Engesa and Avibras, sought protection from creditors for debts of about $200 million.

___

Associated Press writers Jenny Barchfield in Rio, Karl Ritter in Stockholm and Stan Lehman in Sao Paulo contributed to this report.

*Link for This article compiled by K. V. Seth from reliable sources By Bradley Brooks - AP
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DTN News - DEFENSE NEWS: New Super Hornet Solicitation Could Threaten Navy’s Joint Strike Fighter Buy

DTN News - DEFENSE NEWS: New Super Hornet Solicitation Could Threaten Navy’s Joint Strike Fighter Buy

Source: DTN News - - This article compiled by K. V. Seth from reliable sources By: Dave Majumdar USNI News

(NSI News Source Info) KOTTAKKAL, Kerala, India - October 31, 2013: The U.S Navy has released a pre-solicitation notice for 36 additional Boeing F/A-18E/F Super Hornet strike fighters, which could potentially threaten the production ramp-up for the service’s Lockheed Martin F-35C Lighting II Joint Strike Fighter (JSF) variant.

But Naval Air Systems Command (NAVAIR) officials say that there is no current requirement for additional Super Hornets in fiscal year 2015. However, the service hopes to gain approval to negotiate a deal should the need arise for more jets.

“Currently, there is no fiscal 2015 or subsequent requirements for additional F/A-18E/Fs or EA-18Gs,” wrote NAVAIR spokeswoman Marcia Hart-Wise in an email to USNI News.

“Naval Air Systems Command released FY15 (Lot 39) F/A-18 E/F and EA-18G (Solicitation Number: N00019-13-R-0102) with the intent to secure justification and approval needed to negotiate a potential option for any prospective requirements that may emerge in fiscal 2015, USN or FMS [Foreign Military Sales].”

According to the Oct. 17 notice, NAVAIR intends to negotiate a fixed price deal with Boeing for the procurement of up to 36 F/A-18 E/F and EA-18G aircraft in fiscal year 2015. The procurement would also include all of the jets’ ancillary equipment and technical data.

In addition to the posting for the Super Hornet airframes, NAVAIR also released a similar notification for the jet’s General Electric F414-GE-400 afterburning turbofans on Oct. 28. According to that posting, NAVAIR intends to seek a fixed-price deal for up to 84 engines in fiscal year 2015 of which 12 would be spares.

Though Navy officials insist that they are committed to the F-35C, many in Washington suspect that the service is positioning itself to purchase additional F/A-18E/Fs while slowing down the F-35C procurement ramp up.

Such a strategy would allow the Navy to replace some of its increasingly decrepit early-model Boeing F/A-18A/B/C/D aircraft with newer Super Hornets. It would also allow the Navy to reduce the number of early production F-35Cs the service buys that would require various upgrades.

Richard Aboulafia, an analyst with the Teal Group, told USNI News that the Navy is likely paving the way for negotiation in case the U.S. Congress comes up with additional funding to keep the Super Hornet line open past 2016. The Navy was supposed to stop further Super Hornet procurement in the fiscal year 2014 budget.

“They’re not going to ask for them [new Super Hornets] because the budget environment is very difficult,” Aboulafia said. “Other than that, it’s very much in their interest to keep the line open.”

Mark Gunzinger, a noted air power analyst at the Center for Strategic and Budgetary Assessments, told USNI News that preserving a second fighter production line in the U.S. is a good thing. “I think it’s in our nation’s interest to maintain a healthy fighter aircraft industrial base,” he said.

But some of the additional aircraft may not be destined for the U.S. Navy, Aboulafia noted. The Super Hornet is a contender for Brazil’s continually delayed F-X2 program, which calls for the acquisition of 36 fighters. However, that is a very remote possibility because the F-X2 effort has been delayed until after Brazil’s next election, he noted. Further, Brazilian president Dilma Rousseff is extremely unhappy about the National Security Agency spy scandal.

When contacted by USNI News, Boeing referred all questions on the solicitation to the U.S. Navy.

*Link for This article compiled by K. V. Seth from reliable sources By: Dave Majumdar USNI News
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DTN News - MAURITANIA DEFENSE NEWS: Mauritania Receives Brazilian-Made Super Tucano Jet Fighter

DTN News - MAURITANIA DEFENSE NEWS: Mauritania Receives Brazilian-Made Super Tucano Jet Fighter

Source: DTN News - - This article compiled by Roger Smith from reliable sources The North Africa Post
(NSI News Source Info) TORONTO, Canada - October 25, 2012: Mauritanian Air Force has received its first Brazilian-made Super Tucano jet fighter under a military deal passed last march with the aircraft manufacturer Embraer, without saying how many planes will be delivered to the African nation.

However, some foreign diplomatic and intelligence sources say that Mauritania will be supplied at least three EMB-314 Super Tucano light military planes which can be used for pilot training, reconnaissance, internal security, border patrol and counter-terrorism and anti-narcotics trafficking missions.

Equipped with an advanced laser inertial navigation and attack system, a GPS and a traffic alerting and collision avoidance system (TCAS), the Super Tucano has an integrated advanced weapon system. This includes  a centerline hard-point for air-to-surface weapons beneath the fuselage, besides wing-embedded cannons.

The aircraft also includes the Safire thermal imaging system from FLIR, which allows the aircraft to carry out night surveillance and attack missions. Powered by a PT6A-68A turboprop engine developing 969kW, the aircraft can fly at a maximum speed of 560km/h. It is also capable of operating from remote bases and unpaved runways.

Designed to operate in high temperature and humidity conditions in extremely rugged terrain, the Super Tucano is highly maneuverable, has a low heat signature, and incorporates 4th generation avionics and weapons systems. It is currently used by the air forces of Brazil, Dominican Republic, Colombia, Ecuador, Chile, Burkina Faso, Indonesia, and has been ordered by the armies of Guatemala and Angola.

Mauritania, which has a population of 3.5 million, is facing growing terrorist threats in the Sahel region which has become a safe haven for organized crime and terrorist networks.

After the Islamist extremists took control of Northern Mali, thousands of refugees fled into Mauritania, placing additional strain on resources as the country is itself rocked by internal turmoil and struggling with a food crisis engulfing the whole Sahel region.

*Link for This article compiled by Roger Smith from reliable sources The North Africa Post
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DTN News - LAAD SECURITY 2012: Oshkosh Defense Exhibits Protected Vehicle Capabilities At LAAD Security

DTN News -  LAAD SECURITY 2012: Oshkosh Defense Exhibits Protected Vehicle Capabilities At LAAD Security
*Protected, highly maneuverable SandCat TPV on display April 10-12 in Rio de Janeiro
Source: DTN News - - This article compiled by Roger Smith from reliable sources  Oshkosh Defense
(NSI News Source Info) TORONTO, Canada - April 9, 2012: Personnel protection in Latin America is an increasing concern for corporate, municipal, federal and other government forces. Security and safety professionals will have an opportunity this week to learn more about the protected vehicle offerings from Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), at the LAAD Security 2012 exhibition in Rio de Janeiro, Brazil, April 10-12.

Oshkosh will display its SandCat Tactical Protector Vehicle (TPV) at the show. The SandCat TPV combines the agility and drivability of a consumer truck with the protection capabilities of a tactical military vehicle.

“Our SandCat TPV is a highly customizable vehicle designed for public safety officials needing to increase their protective detail for special events such as the FIFA World Cup™ and the Olympic Games, as well as provide critical support needed for daily patrols in urban environments or off-road terrain,” said Serge Buchakjian, senior vice president and general manager of International Programs for Oshkosh Defense. “We back our vehicles and products with full life-cycle sustainment and support services anywhere in the world.”

Oshkosh Defense has more than 90 years of experience designing, manufacturing and sustaining world-class vehicles for governments and militaries around the world. Oshkosh uses a collaborative, integrated approach to meet customers’ needs, from vehicle design and flexible manufacturing to training and aftermarket sustainment. Oshkosh can also provide in-country manufacturing capabilities to provide lasting value to local economies. The company has produced more than 100,000 military-class trucks and trailers, with vehicle payloads that cover the complete light-to-heavy spectrum.

Oshkosh vehicles have been proven on severe off-road terrain and against a variety of modern threats, and used by militaries, special forces units and government agencies around the world. Oshkosh’s advanced technologies deliver capabilities such as extensive off-road mobility, exportable power, autonomous operation and integrated on-board diagnostics.

Oshkosh’s aftermarket solutions cover the complete spectrum of vehicle life-cycle support, including training services, instruction manuals, maintenance and repairs, parts supply, and fleet restoration services. Oshkosh Field Service Representatives (FSR) travel globally to ensure vehicles and personnel are at peak operational readiness. The company’s robust operator and maintenance training services provide systems-level expertise on the platforms and technologies they support, with classes offered at the Oshkosh Product Training Center, regional service centers around the world or in-theater. Additionally, Oshkosh’s parts-supply network is available around the clock to provide instant access to spare and repair parts for all vehicle makes and models.

The SandCat TPV is part of the Oshkosh SandCat family of vehicles and can be configured to meet individual performance, protection and payload needs. The vehicle’s armor system can be customized based on the threat level and mission profile. Seating capacity can be adjusted to accommodate four to nine passengers. The vehicle also can be equipped with standard or customized storage, and is typically integrated with a wide array of weapons and communications systems. The SandCat TPV’s compact design, combined with a 14-inch vertical step capability and 42-foot curb-to-curb turning circle, enables mobility in both tight urban settings and rugged rural landscapes.

The SandCat family of vehicles also includes the base vehicle, Special Operations Vehicle (SOV) and Mine-Resistant Light Patrol Vehicle (M-LPV). These variants are based on the same lightweight, highly maneuverable platform for eased maintenance and repairs worldwide. Oshkosh has received orders for the SandCat from Mexico, the United States, Sweden, Bulgaria, Canada, Nigeria and Israel.

Oshkosh Defense leadership will be available at LAAD Security to discuss the company’s full range of vehicle and service offerings at booth #J19.

About Oshkosh Defense
Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visit www.oshkoshdefense.com.

About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corporation manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Medtec®, Jerr-Dan®, Oshkosh Specialty Vehicles, Frontline™, SMIT™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, visitwww.oshkoshcorporation.com.

®, TM All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

Forward-Looking Statements
This press release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the expected level and timing of the DoD’s procurement of products and services and funding thereof, including the impact of the DoD’s allocation of certain tires which will restrict and delay certain FHTV sales; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during periods of global economic uncertainty, lower municipal spending and tight credit markets; the Company’s ability to produce vehicles under the FMTV contract at targeted margins; the duration of the ongoing global economic weakness, which could lead to additional impairment charges related to many of the Company’s intangible assets and/or a slower recovery in the Company’s cyclical businesses than equity market expectations; the potential for the U.S. government to competitively bid the Company’s Army and Marine Corps contracts; the consequences of financial leverage, which could limit the Company’s ability to pursue various opportunities; increasing commodity and other raw material costs, particularly in a sustained economic recovery; the ability to pass on to customers price increases to offset higher input costs; risks related to costs and charges as a result of facilities consolidation and alignment, including that anticipated cost savings may not be achieved; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; the cost of any warranty campaigns related to the Company’s products; risks related to production or shipment delays arising from quality or production issues; risks associated with international operations and sales, including foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; the potential for increased costs relating to compliance with changes in laws and regulations; risks related to disruptions in the Company’s distribution networks; risks related to actions of activist shareholders; and the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this press release. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.


*Link for This article compiled by Roger Smith from reliable sources Oshkosh Defense
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DTN News - 2012 BRICS SUMMIT: BRICS Countries Ink Pact To Trade In Local Currencies

DTN News - 2012 BRICS SUMMIT: BRICS Countries Ink Pact To Trade In Local Currencies
*Announce joint working group on common development bank
Source: DTN News - - This article compiled by Roger Smith from reliable sources Nayanima Basu / New Delhi Mar 30, 2012, 00:26 IST - Business Standard
(NSI News Source Info) TORONTO, Canada - March 29, 2012: A major outcome of the fourth BRICS summit, which concluded here on Thursday, was the signing of an agreement on providing credit facility in local currencies. 

This would seek to reduce the demand for fully convertible currencies for trade transactions among BRICS countries — Brazil, Russia, India, China and South Africa. The leaders of these five rapidly emerging economies also agreed to explore ways to establish a development bank for financing projects in these, as well as other developing countries.

Addressing the media after the conclusion of the summit, Prime Minister Manmohan Singh said, “The agreement signed today by development banks of BRICS countries will boost trade among us by offering credit in our local currencies.”

A ‘multilateral letter of credit confirmation facility agreement’ was signed among the five participating banks — Brazil’s Banco Nacional de Desenvolvimento Economic e Social, Russia’s State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank), Export-Import Bank of India, China Development Bank Corporation and Development Bank of Southern Africa.

“We have agreed to examine in greater detail a proposal to set up a BRICS-led South-South Development Bank, funded and managed by the BRICS and other developing countries,” Singh said, adding the five BRICS countries had directed their respective finance ministers to set up a joint working group for an in-depth analysis of the proposal.

The joint Delhi Declaration, issued after the meeting, underscored the concerns of the BRICS countries — “the slow pace of quota and governance reforms in the IMF(International Monetary Fund.” The leaders agreed on giving more powers in the form of greater voting rights to developing economies. The leaders said the process of selecting candidates for the top posts in the World Bank or the IMF should be an “open and merit-based” one. “The new World Bank leadership must commit to transform the Bank into a multilateral institution that truly reflects the vision of all its members, including the governance structure that reflects current economic and political reality. Moreover, the nature of the Bank must shift from an institution that essentially mediates North-South cooperation to an institution that promotes equal partnership with all countries as a way to deal with development issues and to overcome an outdated donor-recipient dichotomy,” the leaders stated.

Earlier, Prime Minister Singh had highlighted the need to prioritise easier business visa norms to take full advantage of such a group. “We should promote greater interaction amongst our business communities. Issues such as easier business visas must be prioritised. As large trading countries, BRICS have a strong interest in removing barriers to trade and investment flows and avoiding protectionist measures,” he said.

The leaders said volatility in commodity prices posed risks, especially in food and energy. They called for improved regulation of the derivatives market to avoid destabilising impacts on food and energy supplies.

The leaders also agreed to make the UN Security Council more effective, efficient and representative.

They said the situation in Iran should not be allowed to escalate into a full-fledged conflict and expressed concern on the human rights violations in Syria.

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-	Bangalore Metro gets $250 mn ADB loan
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*Link for This article compiled by Roger Smith from reliable sources Nayanima Basu / New Delhi Mar 30, 2012, 00:26 IST - Business Standard
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DTN News - BRAZIL DEFENSE NEWS: Brazil "Very Likely" To Choose French Fighter - Sources

DTN News - BRAZIL DEFENSE NEWS: Brazil "Very Likely" To Choose French Fighter - Sources
Source: DTN News - - This article compiled by Roger Smith from reliable sources By Brian Winter - Reuters
 (NSI News Source Info) TORONTO, Canada - February 15, 2012: Brazil is "very likely" to choose France's Rafale fighter jet to refurbish its air force, government sources say, a decision that would award one of the emerging-market world's most coveted defense contracts to a jet whose future was in doubt only two weeks ago.

President Dilma Rousseff and her top advisers believe that Dassault Aviation's (AVMD.PA) bid to sell at least 36 Rafales offers the best terms among the three finalists, the sources told Reuters on condition of anonymity.

The other two bidders in the competition are U.S.-based Boeing (BA.N) with its F-18 Super Hornet and Sweden's Saab (SAABb.ST) with its Gripen.

Rousseff has cast the deal as a watershed decision that will help mold Brazil's military and strategic alliances for the next few decades as it establishes itself as a leading economic power. The contract will have an initial value of about $4 billion, but will likely be worth considerably more over time once maintenance and follow-on orders are included.

Rousseff previously had concerns about the Rafale because the jet had not found any buyers outside France. That raised doubts about whether Dassault would have the scale necessary to build the jets at a reasonable cost and maintain them over time.

The sources said Rousseff's concerns were assuaged when India announced on January 31 that it had entered exclusive talks to buy 126 Rafales. Brazilian Defense Minister Celso Amorim traveled to New Delhi last week to discuss the deal with Indian officials and examine documents related to Dassault's bid.

"The India deal changed everything," one of the Brazilian sources said. "With India's decision, it's now very likely the Rafale will be the winner here."

Shares in Dassault Aviation were up about 4.5 percent, at 706.5 euros, in Paris following the news. A spokesman for the company declined comment.

Jeff Kohler, a vice president of Boeing's business development division, said on the sidelines of the Singapore Airshow he believed the Brazil bid was still "up in the air."

The Brazilian sources said Dassault offered the best combination of a high-quality aircraft and the sharing of proprietary technology that Rousseff has said is most critical to the deal. Brazil hopes to use the technology to expand its own budding defense industry, led by aircraft maker Embraer (EMBR3.SA).

Boeing's offer of technology has yet to be finalized, but the sources said they believe it cannot compete with Dassault's bid because the United States has previously placed tight restrictions on the sale of military technology abroad, including one incident involving Embraer in 2006.

Dassault touts the Rafale as an agile, medium-sized aircraft with low operating costs that can be more quickly deployed than its bulkier competitors. Those attributes may appeal to Brazil, which has no significant problems with its neighbors and plans to use the aircraft mainly for defensive purposes such as patrolling its recently discovered offshore oil fields.

POTENTIAL WIN FOR SARKOZY

If confirmed, the deals would enhance France's partnerships with Brazil and India, two of the world's biggest up-and-coming economic powers. They could also provide a boost to French President Nicolas Sarkozy, who has cast himself as a champion of French industry and an energetic salesman of the Rafale in particular as he faces a tough re-election fight this year.

The sources said that unexpected developments, especially a breakdown in India's talks with Dassault, could still cause Rousseff to change her mind.

They also said her decision would probably not be announced until after France's April-May election, in an attempt to keep the deal from becoming overly politicized.

Brazil's air force contract is one of several deals in developing countries that have been highly contested by European and U.S. defense companies as their home markets suffer due to budget cuts. Companies are also competing for jet contracts in the United Arab Emirates, Qatar and South Korea.

Brazil's bidding process has been open for more than a decade, spanning three presidents and several dramatic ups and downs. Rousseff's predecessor, Luiz Inácio Lula da Silva, said in 2009 that Brazil would choose the Rafale but then left office without finalizing the deal.

Rousseff was extremely close to Lula as his chief of staff, but upon becoming president in January 2011 she surprised her cabinet ministers by asking them to re-evaluate the bids from scratch. A month later, Rousseff told visiting U.S. Treasury Secretary Timothy Geithner that Boeing's F-18 was the best jet among the three finalists, but she still wanted better terms on the technology transfers.

Ultimately, Rousseff grew frustrated by what she perceived as Boeing's inability to improve the guarantees on the transfers, the officials said. Rousseff is a moderate leftist who has built her presidency around policies she believes will help expand Brazilian industries in areas from oil exploration to auto production.

The officials said that Rousseff remained especially wary of a 2006 incident in which the United States blocked the sale of Embraer's Super Tucano military aircraft to Venezuela's leftist government. Washington had the power to veto the deal because Embraer's planes contained U.S. technology.

In a separate incident in 2009, Embraer said it was temporarily blocked from selling commercial jets to Venezuela because they contained U.S. communications systems.

The episodes raised doubts about whether Brazil would face similar restrictions in the future with the technology it received from Boeing as part of the F-18 bid.

"Nobody's ever forgotten what happened with Venezuela," a second official said.

In a twist that may have influenced Rousseff's decision, Brazil's most vocal point-man in the confrontation with the United States in both Embraer incidents was Amorim. He was Lula's foreign minister at the time and Rousseff appointed him as her defense minister in August.

AMORIM GETS INDIAN DOCUMENTS

Boeing has responded to those doubts by trying to compete as the more cost-effective option. The F-18 is widely believed to be cheaper than the Rafale, and Boeing recently confirmed that it will offer the jet to Brazil at the same per-unit price as during the last round of bidding in 2009.

Despite her misgivings on Boeing, Rousseff also did not want to choose a jet that might not even be in production a decade into the future. In December, French Defense Minister Gerard Longuet warned that Dassault would stop production of the Rafale in 2021 if it did not win any export orders.

Within days of India's announcement regarding talks for the Rafale, Amorim traveled to New Delhi to gauge the bid's terms and its likelihood of proceeding as planned.

Amorim told the Times of India on Wednesday that Indian officials "promised to give us some documents...such as basic rules on the tender process that we could compare to ours."

Brazil is not the only country that appears to be suddenly following India's lead. French newspaper La Tribune reported on February 2 that Dassault could soon seal a sale of at least 60 Rafale fighter jets to the United Arab Emirates, turning around a deal that also appeared to be a lost cause.

(Additional reporting by Raju Gopalakrishnan in Singapore and Cyril Altmeyer in Paris; Editing by Kieran Murray and Vicki Allen)

*Link for This article compiled by Roger Smith from reliable sources By Brian Winter - Reuters
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DTN News - BRAZIL DEFENSE NEWS: Brazil Minister Heads To India To Improve Defense Ties

DTN News - BRAZIL DEFENSE NEWS: Brazil Minister Heads To India To Improve Defense Ties
Source: DTN News - - This article compiled by Roger Smith from reliable sources Defense News - AFP
 (NSI News Source Info) TORONTO, Canada - February 3, 2012: Brazilian Defense Minister Celso Amorim is to travel to India this week for talks on boosting bilateral military cooperation, his office announced.

Brazil and India are members of the BRICS group of emerging powers (along with China, Russia and South Africa) and Brasilia views its multi-faceted partnership with New Delhi, including in the defense field, as a “strategic priority.”

Amorim was due in New Delhi on Feb. 7 at the start of a five-day visit that will include talks with Prime Minister Manmoham Singh and Defense Minister A.K. Antony as well as visits of military installations, his ministry said in a statement released Feb. 1.

India “has one of the world’s biggest armed forces” and like Brazil “seeks to reduce its technological dependence on other countries,” the statement added. “There is a great potential for scientific, technological cooperation (with India), to develop projects of mutual interest.”

Brazil is keen on expanding its own defense industry and its military purchases to upgrade its air and naval forces are conditioned on technology transfer and construction in this country.


Amorim was expected to discuss naval cooperation with his Indian counterparts, particularly plans to build aircraft carriers and Scorpene-class submarines, in addition to expand exchanges between military academies of the two countries.

India announced Feb. 1 that it has selected the Rafale, a modern multi-role jet built by French firm Dassault Aviation, as its preferred next-generation interceptor, but details of the $12 billion (9.1 billion euros) contract remain to be ironed out.

Last December, French Prime Minister Francois Fillon said during a visit to Brazil that he was confident that Brasilia would buy the Rafale because the aircraft’s technology cannot be matched.

The Rafale is competing against U.S. aviation giant Boeing’s F/A-18 Super Hornet and Swedish manufacturer Saab’s Gripen jet to supply Brazil with 36 multi-role combat aircraft.

India has also purchased Legacy 600 business jets from Brazilian aircraft manufacturer Embraer.

Meanwhile, Amorim was to stop in the southern Italian city of Palermo on Feb. 6 for talks with his Italian counterpart Giampaolo Di Paola And on Feb. 10, the Brazilian minister will be in Rabat for talks with Moroccan Defense Minister Abdellatif Loudiyi and Foreign Minister Saad Eddine Othmani.

*Link for This article compiled by Roger Smith from reliable sources Defense News - AFP
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*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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