Sitting in the front row of an industrial floor French, Eric Trappier, CEO of Dassault Aviation, was an auspicious smile. The long wait, which annoyed some of the bosses in a hurry, did not alter his good humor. Friday night, in a joint statement, Francois Hollande and Narendra Modi would confirm the announcement of the purchase of bursts. This first European visit of the Indian Prime Minister, who began with France, had to sign the epilogue of a panting contract, awaited by all manufacturers in the aerospace and defense.
Eric Trappier has not had the pleasure of hearing from the mouth of an Indian confirmation number as expected. Narendra Modi has left the closing ceremony of the Franco-Indian economic forum without a word about the gusts. He maintained the suspense still nearly an hour, reserving his announcement to television cameras. After welcoming new partnerships between marine biology research centers and the creation of a Franco-Indian stamp, he finally, in one sentence, said he asked France delivery of 36 aircraft. The delegation, while rustle of saris and head dodelinements then quickly spun for a mini-cruise on the Seine.
A new contract since 1953
The fiercely negotiated contract three years is about 126 units, not 36. But on Friday, a first step was taken. The agreement between governments must unlock an entire project for which the Dassault group and the Indian state are in exclusive negotiations since 2012. “India was our first export customer in 1953,” recalls -t-on with the aircraft manufacturer. Dassault then sold its first fighter, a Hurricane.
For this first installment, diplomacy has taken over the industrial-trade negotiations. Since December, and a first meeting on the subject between the French defense minister, Jean-Yves Le Drian, and his Indian counterpart, the Modi government does not hide his impatience. His aviation needs new appliances. Modi campaigned on a sovereign and powerful army. Its drivers have been waiting three years announced a renewal of their equipment.
Several months of visits and meetings have ended this week in the VIP lounge at Roissy, lowering of airline employees of the Prime Minister. Friday, Hollande was able to submit the proposal to his host that he expected France and the aircraft manufacturer. The first 18 aircraft will come out of the French Dassault factories. The 19th and the rest of the order will be produced in India
This compromise allows Modi not to wring the neck of another of his campaign promises. The make in India, produce locally. If negotiations with Dassault drag on, it is precisely because the industry is struggling to find in India the expertise of 500 French companies involved in the construction of parts and equipment for the Rafale. “There are many things that we do not produce locally,” admits Anirudh Bhuwalka, patron of the Indian tanks manufacturer AMW, a member of the official delegation, with which the French manufacturer of light armored French Panhard partnered to provide the Indian Army.
The half-dozen Dassault plants currently produce 11 aircraft a year, at a rate of one per month. We must therefore take two and a half years before joining the first delivery. Increase the rate is not an option. “Our industrial system is very complex since it includes hundreds of subcontractors. It is a real ship. You can not decide to increase the rate or lowering the liking of orders,” says one at the company.
How the Indian state he pay?
Another problem for the manufacturer, the order placed by the Egyptians. Three Gusts are expected in Cairo this July. They will be punctured production originally intended to France. It has already been delivered 140 bursts for a total initial order for 225 aircraft by 2030. India will also before the French army, but will have to wait two years to fly its first Rafale. These delays logically affect the price negotiated between the two parties, which is kept secret. The amount of the Egyptian contract is $ 3.5 billion for 24 aircraft. France paid $ 1.5 billion for 11 aircraft. How India she will pay for 36 aircraft? No need to try a simple rule of three. “Each contract is specific Several parameters are taken into account:. Commitments to provide spare parts over periods also variables, the indexing level on inflation or the exchange rate, pilot training, developments specific related to certain equipment, “explains an expert.
The question is who, after India, is next on the list of Dassault Aviation. Qatar seemed to hold the rope before taking umbrage at the Egyptian command. The United Arab Emirates have already shown interest. Malaysia could offer the same type of equipment. Tenders will soon be launched by Switzerland, Belgium. Dassault even takes to dream in Canada, including the legitimate partner remains the United States. “You never know,” said one part of Dassault, who is growing wings.
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