President Luiz Inacio Lula da Silva of Brazil has postponed a decision on buying 36 jet fighters from any of the three rival bidders until early spring 2010 at the very earliest in a move analysts interpret as part of a strategy to extract maximum advantage over Brazil's long-term plan for extensive technology transfer.
Despite the fact that Lula publicly said the Rafale made by France's Dassault Aviation would win the contract, the Brazilian air force has not finished evaluating the three planes, which include Boeing's F18 Super Hornet and Saab's Gripen, the latter apparently being favored by the air force.
But there will be a presidential election in Brazil in October and as defense specialist Jean Guisnel writes it the French weekly “Le Point” there is expected to be a six-month respite from major political decisions, particularly a contract of this importance before the election. He cites a source familiar with the negotiations as saying that “frankly, it is highly unlikely that a decision is taken before April which means that we are unlikely to see a decision before the end of the post-electoral grace period, towards April 2011.”
Sources say the contract negotiations are “extremely tough” and that knowing their president has opted for the Rafale, the Brazilians are pushing for conditions, notably over the price, that Dassault “is absolutely not prepared to accept.”
(Source)
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