kelesis wrote:Septimus,
EADS statement just reveals they have a problem with the price of the Rafale for MMRCA. Regarding mid and long term evolutions, Dassault is in a better position than Cassidian. Dassault is leading the Neuron UCAV european program and the drone program for France and UK together with BAE. Cassidian has been excluded from all new programs mainly because Eurofighter and A400M are financial disasters (Rafale price is 4.6% higher than expected, EF it's 75%!) that's facts.
Sigh. The 75% increase was because the UK cut its orders by 72 aircraft out of the originally intended 232. But since those were sold to Saudi Arabia the money was recovered, even though the receipts were not accounted back into the EF's tally.
The actual cost increase is a little over 10%, and unlike the Rafale this is spread over the 232 aircraft
actually ordered not those
expected be ordered (the French govt has so far only ordered 180 out of the projected 286, there's still plenty of time for its cost to inflate further).
Aside from the BAE-Dassault Telemos project what new programs has Cassidian been excluded from?
Dassault is profitable while Cassidian suffers heavy losses, that's also facts.
Cassidian doesn't post financials independently AFAIK. I assume you've closely scrutinized EADS financials to come to that conclusion. If so, details of these losses would be very welcome. Its hard to quantify 'heavy losses' without figures or specific years/time in question.
In addition, EF has always been consider as more expensive and/or less capable than Rafale by potential customers.
So everyone keeps saying yet the actual figures say different.
The EF's program cost is £18.16 billion or €21.28 billion for a build order of 232 aircraft, according to the UK National Audit Office.
http://www.nao.org.uk/idoc.ashx?docId=C ... version=-1
Assuming the Saudi EF's were sold at cost, that implies the
Eurofighter ended up costing -
€91.72 million/unit.
The Rafale's cost according to this audit report (don't know if its French Senate or MoD) is €40.69 billion for an expected order of 286 aircraft.
http://www.ccomptes.fr/fr/CC/documents/ ... mement.pdf
That puts the program unit cost of the
Rafale at
€142.27 million each.
[Edit: I'm not sure what taxes are inclusive in the EF's cost but the Rafale's price is VAT inclusive. Without it, it would cost about €120 million.]
Even assuming for accounting omissions in computations, its still quite clear that the Rafale isn't likely to have a cost advantage of any significance.
As far as the Indian competition goes, the flyaway costs for both aircraft were
within 5% of each other (could even be less). The operational and ToT cost remains to be seen.
On the political ground things are not better for EF. Germany and England are in disagreement on all politicals issues and negociations to fund EF evolutions are always very difficult.
The political leaderships are odds over matters of finance and governance. The leaderships of the RAF and Luftwaffe on the other hand are relatively in synch. The British decision to stay out of the Eurozone in the 90s didn't go down very well either, but it didn't hamper the development of the Eurofighter.
RAF, Luftwaffe chiefs back new technology for Tranche 3 Eurofighter
Two of the air force chiefs from the launch Eurofighter nations have underlined their services' continued commitment to the programme, and say they want to field new capabilities with the aircraft.
http://www.flightglobal.com/news/articl ... er-329943/
While England and France don't want to work with EADS anymore and Germany is not concern about military spendings, I think it is better to bet on Dassault than EF for a future 40 years industrial relations, it is clearly the safest option.
It also gives France a degree of leverage that India may not be very comfortable with. With the Eurofighter it gets some form of a partnership, while its dynamic with Dassault is of a customer/seller, a trusted one, but a seller nonetheless. If a future Rafale MLU goes down like that of the IAF's Mirage-2000, Dassault may yet again take a 'our way or the highway' approach.
Also, while EADS's primary customer is still Germany, both EADS and BAE are expanding aggressively in India with a view to settle in here for the long run (BAE already counts India as one of its seven home markets). Dassault on the other hand seems quite passive, content with its profitable Falcon jet production.