Saab Counters Dassault And Cuts Price

In an effort to counter the threat posed by French plane-maker Dassault, Swedish Defence Company Saab will cut the price on its Gripen fighter jet to ensure that it wins a Swiss order, a report said on Wednesday. Lowering its price will challenge a reported counter-offer by Dassault proposing 18 Rafale planes for 2.7 billion francs, while the new price could be between 2.5 and 2.8 billion francs, Tages Anzeiger reported. Dassault sent a letter outlining the proposal to the security commission of the Swiss parliament, which still has to approve the Gripen purchase. The Swiss government must first formally endorse the deal this month before it is sent to lawmakers for final approval later this year. Saab has said Bern can sign the Gripen contract directly with the Swedish government which would act as a guarantor in the event of any difficulty in delivering the aircraft, Hakan Jevrell from the Swedish defence ministry was quoted as saying.