Stuck in Works, Rafale Deal Fails to Take Off

[sancho]

since this contract is Dassault's life line for their export business.

It is not Dassaults life line and that actually the problem for the Rafale in general. Dassault makes the most money with their other business fields, the aviation part is just a minor contributer. So even if no more Rafale exports would generated, they won't be that effected as a company.
More over, they have fixed deals with the French government and forces, which secures production beyond 2020, while most of their competitiors like the F15, F16, 18SH or the EF will be out of production before 2020. So Dassault is not as desperate as they are for new deals to extend the production line.
All this makes Dassault obviously less flexible in negotiations, while Thales, or Sagem or Snecma would indeed prefer exports of Rafale to gain more financial benefits. Sagem for example might see a big hit soon, since AASM production is secured only till 2016 and with the integration of METEOR to Rafale, the numbers of MICA missiles they can sell will drastically lower too. So in both cases, Rafale exports would be crucial!
French government is even more desperate to Rafale exports, since they hope that exports will reduce costs of spares and upgrades, or generate some more benefits in return to their investments on the fighter. With the current financial situation, they might even prefer to divert some of their orders to export customers and saving some money in the short term. We have seem them openly criticizing Dassault for the way they were negotiating with the UAE, while the government made several concessions in other fields to get the UAE to buy the fighter.

So Dassault is not desperate and that causes issues for exports too!

 

[Chinese-Dragon]

It is not Dassaults life line and that actually the problem for the Rafale in general. Dassault makes the most money with their other business fields, the aviation part is just a minor contributer. So even if no more Rafale exports would generated, they won't be that effected as a company.

"Since this contract is Dassault's life line for their export business."

I was referring purely to the export potential of the Rafale, if they have other export businesses I don't know, but that wasn't my point.

French government is even more desperate to Rafale exports, since they hope that exports will reduce costs of spares and upgrades, or generate some more benefits in return to their investments on the fighter. With the current financial situation, they might even prefer to divert some of their orders to export customers and saving some money in the short term. We have seem them openly criticizing Dassault for the way they were negotiating with the UAE, while the government made several concessions in other fields to get the UAE to buy the fighter.

So Dassault is not desperate and that causes issues for exports too!

Well, you know more about it then I do, so I will defer to your knowledge.

 

[sancho]

"Since this contract is Dassault's life line for their export business."

I know and I am just pointing out, that they are not dependent on Rafale exports, not even for Dassault aviation, which are doing quiet well with the Falcon business aircrafts too. Just as the Rafale itself is not as dependent on exports as other fighters are.

 

[SpArK]

At first, I was tired of all the Rafale threads.

Then I got excited again, since the Rafale is just such an awesome plane.

Maybe the Indian government is trying to put negotiating pressure on Dassault, since this contract is Dassault's life line for their export business.

The deal looks like a stalemate by two people thinking about on who sacrifices what and more.

A watered, compromised deal is a no deal.