France Ready to Bargain on Rafale Price With India: Dassault Chief

France would be willing to bargain with India on the price of the Rafale fighter aircraft, Chief of Dassault Aviation, Eric Trappier indicated yesterday.

Participating in a TV interview with Europe 1 channel upon his return from India where he accompanied French President Hollande, Trappier said, "even if there is necessarily a bargain on price, with the Indians, there is no credit, it's cash."

The Dassault chief may be referring to the deal with Egypt in which France had sold 24 Rafale fighters  for US$5.9 billion in a part credit deal guaranteed by a consortium of French banks. With no such credit terms with India, Trappier’s comments on the “bargain” signify that Dassault may be willing to negotiate on the price since the Indian deal will be on cash terms.

India has been insisting on a price much lower than the US$9 billion demanded by France for the 36 aircraft plus weapons and support. Indian officials have been quoted as saying that the price is too expensive and a figure of US$7 billion is what they are looking at. A recent report said that India had sought a fresh (lower) price quote for the 36 aircraft.

"We hope to finalize (the Indian contract) by the end of February." The CEO of Dassault Aviation said during the course of the Europe 1 TV interview. Eric Trappier further explained, "This intergovernmental agreement is decisive. The trade negotiations began a few days ago."

However, the French may not be open to bargaining a lot as is revealed from Trappier’s next comment, "the aircraft are cheaper than their competitors. They also won the first round in India against Russian and American planes."

Regarding the price Trappier explainediIn another interview to RTL TV, “The Indians are looking to lower prices. It is quite natural.” He added that Dassault has a real chance of finalizing but if price and conditions are not accepted, the agreement cannot be signed.

The CEO of Dassault Aviation also said that deliveries to India would begin in three years and end in 2022 after the signing of the contract.

Eric Trappier further said that this agreement with India will be responsible for creating a few thousands of jobs because it will increase the rate of production (of the aircraft) which is at two airplanes per year. “And these are jobs that will last several years.”

With India, we hope to have other contracts later as the Indian Air Force have replacement needs of their aircraft which are very old, he added.

Quotations of Eric Trappier have been translated from French