airmarshal
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You might want to check how often he, or other French government officials visited India since the election last year and what effect these visits had on the MMRCA deal. This is just political support, but French government has no leverage over Dassault, which was pretty evident in the UAE as well, where they were even pretty angry about Dassaults behaviour. This deal is stuck on Dassault taking responsibility till the last fighter is delivered or not and that is only up to Dassault to decide. If they say no, it's up to the Indian government to reject it or not and that's all that we are talking about now.
IMO here you can see the difference between dealing with the French government and Dassault!
The Egypt deal is largly negotiated and done by the French Government, not only by giving the guarantees for the loans, but also by diverting Rafale orders for the French forces, to Egypt. They don't have to talk to Dassault for that and since the deal does not include any ToT, or industrial benefits from Dassault, the OEM is pretty much unimportant to fix this deal. This however is not comparable to the Brazilian, UAE and of course the Indian deal, where Dassault is the key, no matter how much good will comes from the French government.
Egypt gives the French Government not only the possibility to save some money in the current budget, by selling the Rafales to Egypt, but also to support Sagem and keep their AASM production line open with orders from Egypt, let alone the additional orders for DCNS with the Fremm. It's a big win for French Government, but just a little one for Dassault, it actually even creates a problem for Dassault, since now they might not be able to provide the 1 x squadron for India or Qatar till the end of 2017 as they planned earlier and depending on how the production line will change now.
Self delete.. sorry mate. My post was meant for someone else.
Egypt deal
- The Rafale, frigate and missiles will be covered by specific contracts rather than a global contract, the first official said.
- Egypt will pay for half of the total deal using its own funds, with the other half financed by bank loans, the official said.
- The bank loans will be insured by Coface, the French state-backed export credit guarantee department, the official said. That 50:50 ratio of payment reflects the guidance set by the Organization for Economic Cooperation and Development.
- The Coface insurance means the French government would repay banks and manufacturers if Egypt fell into payment problems on the loans.
- The size of the down payments would differ for the fighters, frigate and missiles as the amount depends on whether the platform is built. As the Normandie frigate is built, the down payment would be larger than the standard 15 percent.
- BNP Paribas, Credit Agricole and Societé Générale are the banks raising the bank loans for the Egypt contracts, French media have reported.
- Source: In France, Relief Over Rafale Sale to Egypt
If you give liberal terms like these, with semi guarantee of 50% payment by French government in case Egypt fails to pay what it shows is simply the desperation of Dassault to sell Rafale urgently. Strangely, why this desperation is not seen versus India where contract is potentially 126+63 vs 24 implying almost 8 times size with sizeable TOT as well as a second line at HAL giving benefit of supplying assurance in case of Nato pressures also (specifically counters all future issues in the category of Mistral fallout where bcz of Nato pressures France did not hand over Mistral to Russia).
I can clearly spell it out that these types of terms wont be repeated again and again. This move is only to shift France own commitment of buying rafale and rescheduling it via Egypt deal so that its outflow gets limited and still say "we are committed to Rafale"
I also feel by selling arms to Egypt Dassault is trying its best to pep up that entire region to see who else can buy from them asap.
After reading various sources and full colored views of Russian media and false marketing as well as a propaganda warfare with offerings of anything and everything, France and particularly Dassault needs to wake up badly. Thats all i can say. Hopefully today we may hope to see a more positive approach.. and hints of whats in store. If only Dassault acts a bit smartly, the twin benefits to both nation seems immense.
What is your point here? Of course Dassault would want to sell as many as possible.
The lenient deal with Egypt could be as its the first sale. They want to make sure this sale happens so that France can attract more buyers. Whats wrong in that?
French will not let the Indian deal go. Its too big a deal and there is a question of reputation of their product as well that is at stake.
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