(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.
http://defense-technologynews.blogspot.com/2012/02/dtn-news-brazil-defense-news-brazil_15.html
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