MilSpec
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Let's face it.
France has declared economic emergency, mounting debt and unemployment has kept the French on the edge. Defence industry is their only hope. They need to close this deal even if it means lesser profit.
This has been called the "mother of all defence deals" for no reason.
Our relations with Russia are cordial as of now, and Indian govt will maintain the status quo...or so I assume.
@PARIKRAMA @Abingdonboy @MilSpec
Seems Kuwait is Buying Just 28 Eurofighter At €8 billion (US $8.7 billion)
http://www.defensenews.com/story/de...ce-kuwait-sign-deal-28-eurofighters/79394322/
9 Billion For 36 Rafale Seems Fair To me Now
your take Guys
People think French are charging more to India out of the blue. It is the standard complete life cycle cost for plane of that generation.
The problem lies with the original MMRCA contract not defining the contract size by total life cycle cost but initial hardware acquisition/production cost....so there are two differing definitions that people think are apples to apples.
Who's surprised? Not me. Maybe all these clowns going around trying to paint a picture of the French being schemers trying to rob India blind and asking for a price that has no link to intrinsic value.
yeah, I still don't buy the life cycle costs.
PLM costs for any product includes the capital acquisition cost along with the operating costs. Operating costs includes costs of spares (gaskets, mounts, inspection hardware ndt ), maintenance costs (dismounting engines, reworking actuators, calibration of sensors, calibration of servos, calibration of transducers) , cost of consumables (hydraulic fluids, alternator service, air filters, aeroduct hoses, brake liners etc), service costs (training, ground equipment, device level trouble shooting, replacement of components)
there is no way that DB, IAF or MOD could have pinpointed the initial + associated operating costs to pinpoint this 9 billion,
I think the intial acquisition cost is around 68-72 million - which btw is exceptionally high - given the MKI is around 52 mil.
I do not buy this PLM cost unless DB takes the entire responsibility operating costs, pays for all MRO stores, completely pays for all technician training and certifications. And if the operating costs are based of of what French airforce has been seeing for thier own fleet, they cannot juxtapose those costs to India and ask us to pay for it. It is not an apple to apple comparison. And in that case they need to submit cost of all consumables, all spares, all replacabe components, and those payments do not need to happen until those services are delivered.
When you buy a car you do not pay for next 20 oil changes, 24 sets of tires, 16 brake liners, 20 gallons of oil, 3 sets of radiators, 4 expansion tanks, and upper/lower hoses, fan clutches , thermostats etc. You pay for the car, get a few free services and set up a TPM regime, and you know what the cost is based on the spares and services. A totyota corolla will cost you less to maintain than a Bentley GT, but you know that before hand , as the cost of these spares are known. Same applies here, cost of spares are known, you can estimate thos costs and account for operating costs but YOU DO NOT PAY THAT TO DASSAULT UPFRONT.
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