- Filed Under
HELSINKI — Saab has indicated that it may reduce its price to Switzerland regarding the sale of 22 JAS Gripen-NG multirole fighter aircraft. The cost issue re-emerged after Dassault presented a new offer, pitched at a lower price for a reduced number of aircraft, to the Swiss government.
The Swiss government provisionally approved preferred bidder status for the Gripen in November following a competition that also included France’s Dassault Rafale and EADS’ Eurofighter Typhoon. Boeing withdrew its F/A-18E/F Super Hornet bid from the competition in 2008, with the company stating that the aircraft was “overqualified” for the role outlined by Switzerland.
The French company’s decision to lodge a new offer is prompted by the continuing opposition to the Gripen’s selection by left-wing and center-right parties in the Swiss parliament, who are trying to derail the process by calling for a national referendum on the project.
Swiss Defense Minister Ueli Maurer defended the government’s aircraft choice in parliament Feb. 8, stating that the preliminary decision was based on the superiority of the Gripen offer in long-term costs. However, the leftist and center-right parties want the acquisition program suspended until the government’s procurement policy is reviewed by an independent committee and the Gripen’s suitability reassessed.
Saab says it is prepared to discuss price.
“The price can be less than 3.1 billion Swiss francs [$3.4 billion],” said Anders Carp, the head of Saab’s Switzerland division. The $3.4 billion figure was the “estimated” price provided by Saab to the Swiss government in 2011, said Carp. Saab has not revealed a firm price for the 22 Gripens, but the final cost could be in the range of $2.74 billion to $3 billion.
Dassault’s revised offer, contained in a letter sent to the Swiss parliament’s Commission on Security Affairs, amounts to $2.96 billion for 18 Rafale fighter aircraft. In its original offer, Dassault had priced the delivery of 22 Rafale fighters at $4.4 billion.
The Swiss government is expected to endorse the deal with Saab in coming weeks. The matter will then be forwarded to the legislature for final approval during the second half of 2012.
To reinforce the strength of its bid, Saab has offered the Swiss government the option of signing a purchase contract for the Gripen directly with the Swedish government, which would act as a guarantor in the event of any difficulty in delivering the aircraft.
Switzerland’s fighter acquisition program is centered on the replacement of three of its five Tiger II Air Squadrons. The new multirole fighters are to partner with the three squadrons of upgraded F/A-18C/D Hornets that make up the rest of the Swiss Air Force’s fighter fleet.
