How Dassault Aviation killed the Golden Goose (MMRCA)

Dassault aviation was playing hardball from the very beginning said IAF source close to idrw.org, “Dassault aviation became too greedy on its margins” said French defence experts after India only placed orders for 36 jets. But it is not one instance but several instance which could question Dassault companies ethical business practices. let start from beginning, Dassault aviation as per request for proposal (RfP) in bidding process itself failed to provide full technical details of Rafale fighter jets and was close to being eliminated, when diplomatic intervention prevented its early exit of the biggest fighter jet competition in the world .

This was not the only instance of a lackluster attitude of Dassault aviation was also noticed In 2009 and 2011 edition of AeroIndia which is Asia’s Premier Airshow and India’s Biggest Aerospace exhibition . Dassault Aviation simply couldn’t get Rafale fighter jets to the exhibitions even when other contenders in MMRCA tenders participated in full force . when idrw.org had questioned them in 2011 edition we were not able to get clear answers from their officials and it seemed like they were not interested in bringing the real thing to India to save few millions.

After Rafale and Eurofighter jet were shortlisted and Rafale bid by Dassault Aviation was declared as L1 (lowest bidder). Dassault aviation immediately selected Mumbai-based Mukesh Ambani-led Indian conglomerate Reliance Industries Limited (RIL) as its private sector partner to manufacture the Rafale Combat jets in India. it was the first deviation from original contract clause since RFP had clearly mentioned that State-owned Hindustan Aeronautics Limited company will be the one who will manufacture jets in India under Transfer of technology (TOT).

The Second deviation was when Dassault aviation refused to guarantee on work done by HAL of Rafale fighter jets produced in India. it also didn’t want to be the one who will be liable for financial penalties if there are delays in delivery schedule, While HAL, and Dassault aviation at the final stage of negotiation agreed to a compromise but MOD and Defence minister Parrikar were not convinced about the compromise since it didn’t clearly defined who could be liable for financial liabilities.

Modi in France placed an order for 36 Rafale fighter jet which will be a G2G deal and the French government will be discussing it with Dassault aviation and the Indian government will have direct talks with the French government . Such G2G deal shows how frustrated Indian negotiation committee were with Dassault aviation. Dassault aviations lackluster attitude and lazy response is quite legendary in France and a survey done by a French media house had said that many in France didn’t believe that Dassault aviation ever be able to crack a deal with India .

Discussions with French counterpart can be frustrating not doubt about that said same source. remember GTRE-Snecma plans to develop a new engine from mating technology from the M88-Kaveri engine? Well, that discussion went on for 5 years without any results and India should be glad that capable leadership in India did not allow it to drag on for few more years.