Dassault looks to win Brazilian jet order

PARIS, Jan. 7 (UPI) -- France's Dassault has a good chance of winning a $7 billion fighter jet contract from Brazil after officials there said the final decision lies with President Luiz Inacio Lula da Silva.

A recent newspaper article said Brazil's air force is favoring Sweden's Gripen Next Generation fighter jets, built by Saab, followed by Boeing's F/A-18 Super Hornet. The Rafale, produced by Dassault, only comes in third.

However, Defensenews.com quoted Brazilian Foreign Minister Celso Amorim as saying Wednesday that the final decision over the contract for the 36 fighter jets was still a political one.

"Obviously we will study (and) take into account what is in the reports," but "it's for the minister of defense and the president of the republic to decide," he was quoted as saying.

This should put Dassault on top once again. Lula and French President Nicolas Sarkozy are said to have excellent ties.

Sarkozy traveled to Brazil to visit Lula in September 2009. Both leaders issued a joint statement opening Brazil's official negotiations to buy 36 of Dassault's Rafale jets.

While the statement did not mean an end to the tender process, Rafale is seen as the favorite to get the deal, also because the French bid included significant technology transfer.

Meanwhile, Saab and Boeing are continuing to fiercely advertise their own jets.

Boeing has reportedly lowered the price tag for its F/A-18 Super Hornet.

Sweden promised that 40 percent of the ordered jets would be built in Brazil and that the Brazilian air force would get full access to the technology used in the Gripen NG.

The multi-role aircraft is equipped with a General Electric F414G engine and an active electronically scanned array radar system.

Observers nevertheless see the French winning.

Brazil has already ordered a fleet of Cougar helicopters and French-made submarines; the Rafale sale would be a major comeback for the French fighter jet industry.

In the 1980s and 1990s, Dassault sold many of its Mirage jets, but the Rafale has not been able to convince buyers yet. Morocco, usually a reliable customer for France, chose Lockheed Martin's F-16 fighters instead.