Dassault Expects Indian Rafale Deal to Boost Its Bottomline For 2016

French aircraft manufacturer, Dassault is hoping that a forthcoming signing of a contract with India to sell 36  Rafale aircraft would boost its revenue for the financial year 2016.

Dassault published on July 21, interim results for the first six months of 2016. Consolidated order intake in the first half of 2016 amounted to EUR 1.3 billion, compared to EUR 4.3 billion in the first half of 2015, which was marked by the Egyptian order for 24 Rafale fighters. Exports accounted for 64% compared to 95% in the first half of 2015

The company reduced its forecast for Falcon jet deliveries from 60 to 50 aircraft over 2016, and anticipates a slight decline in its sales annual sales compared to 2015 which it attributed to unfavourable business climate in Europe and elsewhere. "We are just a mirror of the macro-economy, or global growth slows. It is moving towards a low level for some time," said Trappier.  

Following the Egypt and Qatar deals, Dassault is looking for a third Rafale deal worth an approximate EUR 7.89 billion with India which will help it boost the financial year order intake. We have done 99.9% of the work, in fact 100%. The ball is in the Indian camp," Dassault CEO Eric Trappier told the French Media indicating that they (French government) has done everything it can do about the deal (price, offsets, industrial partnerships) and it was up to India to take it or leave it.

However, reports from India suggest that the Rafale deal is nowhere near closure. Last week, Indian defence minister Manohar Parrikar said, the Inter Government Agreement (IGA) and the offset contract for the multi-million euro Rafale fighter jet deal is yet to be finalised. Details including transfer of technology through offsets will emerge after the negotiations are completed.

“The negotiations are underway and IGA and offset contract are yet to be finalized,” he said.