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France offers 25% discount to India on purchase of 36 Rafale jets

Discussion in 'Indian Air Force' started by tusharm, May 6, 2015.

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  1. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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  2. Picdelamirand-oil

    Picdelamirand-oil Lt. Colonel MILITARY STRATEGIST

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    So cost for India is cost for Dassault + Margin. On export Margin could raise up to 15% (around 7% for France) so if we come back to my evaluation of $ 4.05 B cost for 36 Rafale, it will be 4.05 B + 0.6 B = 4.65 B price (or cost for India) so for missile you have 5.4 (price) - 4.65 = $ 750 Millions.
     
  3. Ezco

    Ezco Captain FULL MEMBER

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    so 10 billion divided by 200 = 30 million with your math ? ... I think you should check your math.

    in my world it is 50 million without weapon... so
    Spares are free of charge for the 200 fighters or included in the program, and the maintenance cost also? including the one for the out of the shelves radar and engine ?
    Add the future cost escalation, there will be as any fighter program, you will hardly pay 4 Tejas with 1 Rafale.
    and all that considering 200 tejas order, the recent new don't go in that direction...

    I don't want to convince you, just to highlight that comparing price of Rafale and Tejas is stupid: not the same class of fighter plus Tejas is not just a fighter but a program that will provide tech benefits. so of course that have a cost and that is normal.
     
  4. Ezco

    Ezco Captain FULL MEMBER

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    ... and if Pic is true you will even hardly get 2 Tejas for the price of 1 Rafale... Compare that to the initial statement in the previous post that was 1 rafale = 10 tejas
     
  5. randomradio

    randomradio Colonel REGISTERED

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    Think of the same price in MMRCA, but without cost of industrial production and ToT. That's a big discount. IAF won't pay for production and ToT.

    I think the govt has made it clear that the first 36 will be cheaper than what's in the MMRCA deal. If the follow-on contract is also at a similar cost or cheaper than MMRCA, then who's complaining.
     
  6. randomradio

    randomradio Colonel REGISTERED

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    It is possible Dassault may swallow a lower margin for the first 36 fighters so they can clinch a much bigger deal later. And France can make more money during MLUs.
     
  7. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

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    The biggest problem in this contract is the price quoted in MMRCA tender. French will try to keep the same price line and make reductions only for TOT and Indian production line. We have to see if the 25% reduction quoted is for the fly away cost as stated in the tender or the final contracted price as quoted in tender.
     
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  8. Picdelamirand-oil

    Picdelamirand-oil Lt. Colonel MILITARY STRATEGIST

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    You cannot give 25% reduction on fly away cost
     
  9. Picdelamirand-oil

    Picdelamirand-oil Lt. Colonel MILITARY STRATEGIST

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    Yes I said the margin can raise up to 15% but it could be lesser.
     
  10. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

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    everything is possible.
     
  11. randomradio

    randomradio Colonel REGISTERED

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    The 25% discount is only for the 36 jets. The production in India and ToT is a separate deal, not part of the current discussions. Right now, Dassault must be looking for a production partner in India.

    The deal for 36 should only include procurement, maintenance, training, spares and weapons costs.
     
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  12. Picdelamirand-oil

    Picdelamirand-oil Lt. Colonel MILITARY STRATEGIST

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  13. randomradio

    randomradio Colonel REGISTERED

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  14. Picdelamirand-oil

    Picdelamirand-oil Lt. Colonel MILITARY STRATEGIST

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    No move in 5 years!
     
  15. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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    the point is which quote in MMRCA ?

    the earlier original quote of MMRCA which Dasault used to become L1 ?

    or the latest revised quote (with price hikes) which Dasault wants ?
     
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