Indian Rafale Deal Hits Some Bumpy Air

[Pielstick]

Remember when India announced it had selected the Rafale for its MMRCA requirement? At the time it was said that although both Rafale and Typhoon met the technical requirements, Rafale was significantly cheaper and as such was selected. Quite a few eyebrows were raised at this and there was some speculation that Dassault had bid way below cost.

Well check this out:

http://www.dnaindia.com/india/report-dna-exclusive-100-price-escalation-on-rafale-fighter-aircraft-to-rs-175-lakh-crore-likely-to-dent-iaf-s-strike-capability-1957107

Sources in India are saying that the cost of an Indian Rafale has increased by over 100% since it was announced as the winner of the MMRCA competition.

Have Dassault done a Ryanair on the Indians and reeled them in with a low headline cost and then stung them with lots of hidden extras costs?

Also interesting to note that Eurofighter will be having a presence at India's biggest trade airshow this year.

[Rob P]

Sounds about right. The price of Rafale was slashed to ensure they came in under budget, the difference probably funded by the French Government (speculation on my part). However, with the change of French President and the fiscal situation in France now, Dassault has probably been told to claw some cash back.

With elections in India being imminent, I wouldn't be surprised if the original deal was scrapped.

[thomastmcc]

wasnt typhoon ruled out too .. and it lost out UAE as well.

[Rob P]

Typhoon wasn't ruled out, it was one of the two finalists. It lost out to the cheapest bidder, Rafale. Except, it now seems Rafale is the more expensive of the two.