"With the Indian contract, Dassault Aviation has established itself as a large of combat aviation"
PUBLISHED ON 22/09/2016 AT 7:14
INTERVIEW Philippe Plouffe, an expert on defense issues for the Boston Consulting Group (BCG) estimates that mastering aerospace program gained both on the civil and military markets, will enable the aircraft manufacturer tricolor minimize risk when the proper execution Indian program.
Philippe Plouffe, expert of the Defense for the Boston Consulting Group (BCG)
L'Usine Nouvelle. - The India has selected the Rafale. After Qatar and Egypt. Are you surprised by this string of success?
Philippe Plouffe. - This is not surprising. From a technical point of view first. The Rafale is emerging as the most efficient aircraft of its generation. Although the initial concept 30 years ago, its embedded electronic has continuously been modernized to be in the latest technology. It will, however, much to do with competition from new US F35 is truly a new generation of aircraft with a fuselage and a 2015 mission system.
From a political point view, it is not surprising either. India has two objectives. She wants to have leading defense weapons and set up local manufacturing capacity. These two goals are difficult to achieve in practice. First, sell-side, there is a reluctance to transfer sensitive technologies. Furthermore, buy-side, it is not easy to receive technology transfers. The France has been investing for 30 years in the Rafale. One does not acquire this know-how in a few years. This is not only an engineering problem but also industrial know-how.
Over 4 years to reach an agreement. How to interpret the duration endless negotiations ...
We must not underestimate the scope of which will be signed. There are five major nations for procurement of defense equipment and India is one. India is also the first importer of defense equipment with contracts of $ 23 billion over the past six years. Negotiations are often complicated and lengthy. Furthermore, this contract should not be challenged because it is the result of a government to government agreement. This is the case for about 80% of transactions in India in recent years. Other types of contracts can more easily be undermined see canceled even after signing.
In this negotiation, the Dassault teams were professional and careful to the end. The new contract is concluded on a realistic basis.Dassault was able to deny the Indian conditions for the initial contract of 126 aircraft because he felt they were not industrially acceptable. For comparison, industrial A400M (military European transport plane, note) were not able to negotiate reasonable as initial conditions. This largely explains the current difficulties they face
Initially, the Indians were seekers for 126 devices. Does it opens perspectives for Dassault?
This contract is indeed promising. In terms of combat aviation, the Indians indigenous programs in cooperation with the Russians. Or, make a combat aircraft is long and complex. Each time, budgets are exceeded. The overspending in the US F35 exceed 50%. Rafale and Eurofighter Typhoon of the European consortium also exceeded the initial costs. For India, the slippage risk development achieved with the Russian is very significant. It is not enough to fly a plane. It is necessary that all the onboard electronics delivers the expected performance. In case of delay, the most natural solution would be to continue to provide for export.
And France is one of the only countries to have adequate technological and industrial expertise of a globally recognized level. If Indian cooperation with Russia fail, it would allow France to establish itself then as an even more strategic partner.
For Dassault Aviation , what is the scope of this contract?
With this contract, Dassault Aviation has established itself as a large of combat aviation. The historically accessible equipment market 'made in France' only represents 5% of the global market. The
United States , 50% of the global market,
China and Russia have closed markets. The Grippen of
Saab , the Typhoon and Rafale are fighting in a narrow band. And the French aircraft manufacturer has just won on one of the very few countries which is a significant market, with hundreds of potential devices. Like Saudi Arabia also. This is comparable to the French market, British, or German. There are very few large customers accessible.
How to see the contract?
It will be a real challenge. It is not ever easy to work in a distant land with a client who is not your own government. Purchasing practices are not the same between India and France. This involves a lot of rigor in the performance to meet the expectations of the Indian customer.
However, the Rafale Team is well prepared for the challenge.Dassault jurisdiction for enforcement programs is well established.His teams strung programs regularly renewing its family of business jets. Moreover, it is supported by partners who have solid international experience as
Thales defense electronics supplier and MBDA.
Dassault he acquires a new dimension with such a contract?
In purely accounting terms, no. In the end, the part that will return Dassault Aviation could reach half of the contract, or about 4 billion euros in revenue over several years. Basically, this will not change the size of the company. In terms of turnover, Thales or
Airbus Group will always be much larger.
However, this clearly will strengthen its manufacturing base and established itself as a leading player on the international stage.
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