India selects France’s Dassault for major jet deal

India has selected the French firm Dassault over the Eurofighter consortium as the preferred bidder for 126 fighter jets in a major contract estimated to be worth $12 billion (nine billion euros).

 

Dassault won the right to enter exclusive negotiations with India after lodging a lower bid than its European rival in the world’s biggest single defence deal currently in process, an Indian government source told AFP.

Dassault, whose Rafale fighter was pitted against the Eurofighter Typhoon, said it was “honoured and grateful” to be selected and stressed its commitment to meeting the “operational requirements” of the Indian Air Force.

The French government welcomed the news but added that the final contract had yet to be signed.

“At this stage — and I want to be cautious — we are in a phase of exclusive negotiations,” French Minister of State for Foreign Trade Pierre Lellouche told France’s BFM radio.

Lellouche declined to release financial details of Dassault’s bid.

Dassault Aviation shares soared more than 20 percent on the Paris stock exchange after the news broke.

French President Nicolas Sarkozy hailed Dassault’s selection, which he said was “thanks to the competitiveness” of its bid.

“The negotiation of the contract will begin very soon with the full support of French authorities. It will include major transfers of technology guaranteed by the French state,” Sarkozy said.

Eurofighter said it respected India’s decision but was disappointed.

“Although this is not yet a contract signature and contract negotiations are still ahead, we are disappointed,” a statement said.

French Defence Minister Gerard Longuet warned in December that the Rafale production line would be halted if none of the jets could be sold abroad.

France has ordered 180 of the planes.

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