Brazil's Military Future Multi-Billion-Dollar Jet Fighter Deal

Brazilian President Luiz Inacio Lula da Silva won't decide on the future partner for Brazil's military aircraft industry in a deal that involves a multibillion-dollar jet fighter purchase from the winning bidder.
 Instead Lula is leaving the decision to his successor, President-elect Dilma Rousseff, who takes office Jan. 1, Lula told official television station TV Brasil.



The United States, France and Sweden are in the race to win a contract that includes an option to buy another 100 jets from the successful supplier over the coming decades.

Sweden's King Carl XVI Gustaf weighed in to support of SAAB's Grippen fighter, French President Nicholas Sarkozy openly canvassed for Dassault's Rafale and White House support behind Boeing's F-18 fighter was widely reported in Brazil.

Lula indicated he favored buying Rafale as France offered the best technology transfer deal and expressed concern the U.S. Congress might block or restrict any Boeing deal. Grippen won support from Brazil's military strategists because of its lower cost. Swedish lobbyists also took mileage out of Queen Silvia's Latin American connection as the offspring of a German father and Brazilian mother.


High-powered lobbyists from the rivals have frequently beaten the path of the capital, Brasilia, but have failed to glean any useful information on which way Brazil would go next year.

"It's a very big debt, it's a long-term debt for Brazil," Lula said in comments cited by Agencia Brazil and MercoPress during the television appearance.

"I could sign off on it and do a deal with France but I'm not going to do that," Lula said. Critics of Rafale say the jet fighter has never been sold outside France and Dassault hopes to use a sale to kick-start a global marketing campaign. Dassault has its eyes on India and Kuwait among potential customers for Rafale.

Lula said the final decision would rest with Brazil's National Defense Council, which includes Cabinet ministers, armed forces commanders and the president.

Defense Minister Nelson Jobim, who has been closely involved with the negotiations with Dassault, Saab NG and the Boeing Co., will continue his job in the new administration.

Jobim echoed Lula's view that the French offer was the best because of its technology transfer package but senior Brazilian air force commanders favored the F-18 despite a smaller technology transfer package. Supporters for cost-effective Grippen also weighed in but analysts said the Swedish bid still faced more critics within Brazil's decision-making machinery.

The choice of a jet fighter for a fast modernizing air force ties in with Rousseff's plans to create a new civil aviation secretariat that will incorporate departments under defense. The plan is part of an urgent strategy to reverse the poor reputation of Brazilian aviation infrastructure ahead of the 2014 World Cup and 2016 Olympics.

Officials say the new government is keen to begin an extensive overhaul of Brazilian aviation -- both civil and military -- and promote more sophisticated manufacturing of aircraft for expanding national networks and for export.




READ MORE

Brazil ignores India, sells arms to Pakistan

 Has Brazil sold arms to Pakistan overlooking Indian concerns? A section of Brazilian media has carried reports about a Pakistan Air Force transport aircraft being loaded with missiles and bombs last month at Sao Jose dos Campos airport near Sao Paulo.


If these reports are true, the move will be received by surprise as just last year, Brazil had cancelled a contract to sell anti-radiation missiles - meant to destroy radars - to Pakistan. It was widely believed that the deal was cancelled keeping in mind the Indian concerns.

There is no official confirmation so far on the nature of cargo loaded on the C-130 transport aircraft of the Pakistan Air Force. One report claimed that it was short range air to air missile 1-A Piranha, whose improved version MAA-1B is still under development. Other claim has been that the cargo was unguided bombs based on the US MK Series.

The reports also claimed that the sale was kept a secret due to a confidentially clause in the contract.

But the ammunition mentioned in the reports is old. Piranha missiles were used in now retired Mirage III fighter jets of the Brazilian Air Force. PAF still flies a variant of Mirage III.

According to the report, the missiles were loaded in two C-130 aircraft of PAF and the exact value of the deal in terms of money was still not known.

As the veracity of these reports remains to be verified, some experts felt that the timing of such a move by Brazil was surprising as the Latin American country was keen to engage India in expanding defence cooperation.

Just three months ago, Prime Minister Manmohan Singh was in Brazil where it was decided to enhance defence ties. The two sides had agreed to place defence attaches in each others country. Brazil has a strong aviation sector and there have been talks to explore joint ventures.

By not selling anti-radiation missiles to Pakistan, Brazil had sent a strong message to India and opened the way for striking new deals.

India and Brazil have common interests in the military sector as both have big armed forces.

Brazil To Upgrade F-5 Fighter Jets

Embraer Defense and Security to support the upgrade of 11 more Northrop F-5s for the Brazilian air force.

 

An Elbit Systems subsidiary, AEL will provide the modified aircraft's radar, mission computer, displays, weapons management system and electronic warfare equipment under the $85 million deal, with work to conclude in 2013. It will also deliver one flight simulator, spare parts and ground support equipment.

The new award follows earlier contracts secured from Embraer in 2001 and 2007 linked to the F-5 modernisation programme.