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Dassault Systemes is doing far better than RAC-MiG. 2009 profit margin was 18%. RAC-MiG operates at a 14% loss. Algeria debacle placed them on the edge of bankruptcy. With 55b in NPLs VEB had to give them an emergency 15b roubles. Dassault doesn't have any liabilities with Rafale because they produce them within budget and on time. MiG-35 development and production is not likely to go that way. MN and ALA can absorb every fighter Dassault makes for the next 10 years, that has been the production plan all along. MiG's reputation has fallen so low the Yak-130 production was moved to Irkut, MiG-35 orders never came and neither did MiG-29 upgrades. The AT and 1.44 lost out. The only future for MiG in Russia is the Navy and that is a weak one.Dassault's liabilities are supposedly more than MiG. Without Brazil or India, the Rafale will go through difficult phases during MLU. Like I said, French Air force and Navy cannot absorb enough fighters. Algeria debacle did not destroy anything.
Russia already has their 5th gen selection, MiG lost. They already have their AT selected, MiG lost. They already have their long-term front-line aviation upgrade selected, MiG lost. MiG-31 engine production shutdown, another loss. The only bright spot is the Rusnav order which has yet to be signed.The Russian Navy is interested in the Mig-29k. Indian Navy wants more Mig-29k. So, there is a chance for them to salvage their reputation. A potential 5th gen fighter will give new life to the company.
All of the SHs sold were to the USN except a handful to RAAF. I don't call that getting the money back when the export orders don't exceed development cost. I have high hopes for the SE, but a lack of domestic orders may kill it. The failure of JSF might just save it. I never said Boeing was in danger of bankruptcy, just that they are facing a hurdle that may force them out of the fighter market. LockMart is sucking all their wind and US Congress doesn't seem to care.Boeing had a healthy run of the Super Hornet. I am not a great fan of this plane. But, it has done well enough to get back the entire cost of the project and much more. However, you did say the Silent Eagle will do well. It is yet to be seen what the future holds in store for the SE. Nevertheless, Beoing's other major products are still required. Nearly 200 Poseidons are coming up along with a whole host of other projects that includes the 2020 Bomber. This is one company that will never go in the red.
Gripen operational costs are forcing Sweden to send 104 into early scrapping. Rafale numbers go up, Gripen goes down. When you scrap over half your fleet 15 years prematurely, I call that a failure.NG development is paltry compared to the entire Gripen program. The Gripen program has been relatively cheaper than the Rafale and there are currently more Gripens flying compared to the Rafale. It does not take a genius to figure out which one has been more successful.
The development is largely funded by the governments so the companies don't lose anything unless they lost the tender. Getting the money back is how much you export vs development costs. SH is still in the red, Gripen is starting to break even, half their exports so far have been on lease. Rafale obviously has no exports, but will soon change and pay the development costs two fold. It will soon be the most earned back percentage to government funding for all MMRCA contenders. It won't be shut down until the government production run is concluded in 2018-20. DGA still has to replace retiring aircraft regardless of exports.You are missing the point. Gripen, SH and F-16 have had concrete orders that has helped the companies to earn back what was lost during development. Their future is not in jeopardy. If the F-16 is finished, then the F-35 will take over. But, what will happen if Rafale program is shut down due to insufficient orders?
The current orders are 559 and those are likely to be cut again as Tranche 3 costs continue to rise. Lets just say EF does reach 700 units and Rafale only 400. EF consortium has to split the benefits between 4 nations, France only one. The workshare for the two major partners UK/Germany = a sale of only 230 aircraft each. The development costs just for the UK (33%) were €6 billion while total Rafale development cost €5 billion. We didn't have to put up with all the multi-national delays and cost disputes that have plagued the EF either. Rafale will be more successful for us than EF has been to any of her partners.The current orders at nearly 700 is 3 times greater than the Rafale. The EF will still see more orders compared to Rafale even after cutting back.
Rafale has been less successful in exports to date... no one can argue with that. It has been a dismal failure in that regard. But to date is about to change. I am not only willing to bet money Dassault will take Brasil and UAE, but have put €4000 into it and Thales stock. Money where my mouth is I believe the phrase to be.I am not saying Rafale is not a successful program. Just that it is less successful compared to other programs in the deal.
Rafale development cost is different than programme cost. Development cost was €5 billion. The programme cost is €27 billion for a production run of 230 aircraft. It is hard to say what the final EF programme costs and production run will be, but the development costs alone were €18 billion. The cost of the EF has risen so much the UK's audit office has refused to audit the programme out of "commercial sensitivity." Exact quote from the NAO...I doubt the truth in that statement. Rafale program costs have been pegged at $30Billion through open sources, who knows how much more? EF shouldn't be more than twice that amount. Or are you suggesting development costs of EF is $90-100Billion?
"One project, the Typhoon aircraft, is excluded from the analysis of costs as the information is commercially sensitive."
http://www.nao.org.uk/system_pages/idoc.ashx?docid=e8026e85-9161-4e34-9689-06b69cd56648&version=-1
It isn't so speculative when your President makes it a top priority to get it done as a matter of national security. The Brasil order is for 4 batches with the first being 36. That is why this tender has turned from a $2.2 billion deal into nearly $10 billion. I don't have high hopes for the MMRCA. I think EF is in the lead now and that doesn't really bother me. Thales makes about $4 million worth of equipment for every Typhoon sold. Rafale doesn't need the new engine for MMRCA, it needs it for the Kaveri core and UAE thrust requirement.There are too many speculations about Rafale winning major export orders. I am a Rafale supporter, but I will have to be practical about it. The UAE order is coming. The Brazil order is for 36. It is yet to be seen if they will exercise the option of going for more than 36 at this point of time. MRCA win is speculation too, since Rafale needs its new engine in order to compete.