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Boeing Says Brazil Fighter Jet Offer Competitive
By Donna Borak, AP Business Writer
Manufacturing.Net - October 01, 2009

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WASHINGTON (AP) -- Boeing Co. said Wednesday its bid for a lucrative deal to build three dozen fighter jets for Brazil is "very competitive" with rival bids from France and Sweden.

The U.S. plane maker's F-18 Super Hornet is one of three planes in competition for the Brazilian contract, along with France's Dassault SA's Rafale fighters and Sweden's Saab AB's Gripen NG. The planes were preselected in October 2008.

Russia's Sukhoi SU-35, the Eurofighter Typhoon and Lockheed Martin's F-16 were eliminated from the candidate list.

Dennis Muilenburg, CEO of Boeing's defense division, said the company offered Brazil a very competitive price and is getting positive feedback on the fighter jet.

Brazil is looking to buy an initial 36 planes from one company as the South American country revamps its air force. The total number of jets ordered could increase up to 100.

As part of the purchase, the selected company will transfer its technology to the Brazilian government, which is seeking to develop a state-of-the-art weapons industry. The initial purchase will start the transfer process.

Muilenburg says Chicago-based Boeing's technology transfer will be a broad package that will create almost 5,000 "high-tech, high-caliber jobs" in Brazil.

Additionally, Boeing's selection will provide Brazil with access to the largest military market in the U.S., and other previously untapped opportunities.

A final decision is expected this year, with the first deliveries set for 2014.

The Brazilian air force had declined putting a sticker price on the first batch of fighter jets, but both Swedish and French officials have suggested an initial order would be worth between $3 billion to $4.4 billion.

While neither government has disclosed prices for competitive reasons, Sweden has argued Brazil could buy 2 Gripens for the price of one Rafale.

Sweden's defense department has argued that Saab's Gripen is the best value for the Brazilian government since it costs half the price of competing models.

As part of its lobbying effort, the Swedish aerospace and defense firm has also said it will be prepared to move around 50 percent of Gripen production to Brazil should it win the order.

For its part, French President Nicolas Sarkozy visited Brazil earlier this month with the hopes of persuading officials to choose the French-made fighter jets.

During the two-day visit, Brazilian President Luiz Inacio Lula da Silva suggested the French bid had a "comparative advantage" over those of its rivals.

Dassault's Rafale has not yet had a foreign buyer. Saab's Gripen is in service with the Swedish, Czech, Hungarian and South African air forces. Washington backs Boeing's bid.


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