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Wed Dec 18, 2013, 04:57 PM

UPDATE 2-Saab wins Brazil jets deal after NSA spying sours Boeing bid

Source: Reuters

Dec 18 (Reuters) - Brazil on Wednesday awarded a $4.5 billion contract to Saab AB to replace its aging fleet of fighter jets, a surprise coup for the Swedish company after news of U.S. spying on Brazilians helped derail Boeing's chances for the deal.

The contract, negotiated over the course of three consecutive Brazilian presidencies, will supply Brazil's air force with 36 new Gripen NG fighters through 2023. Aside from the cost of the jets themselves, the agreement is also expected to generate billions of additional dollars in future supply and service contracts.

Saab did not immediately comment on the purchase. In addition to Chicago-based Boeing, France's Dassault Aviation was a contender for the contract.

The timing of the announcement, after a decade of off-and-on negotiations, appeared to catch even the companies involved by surprise.

Read more: http://www.reuters.com/article/2013/12/18/brazil-jets-idUSL2N0JX17W20131218

13 replies, 1748 views

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Arrow 13 replies Author Time Post
Reply UPDATE 2-Saab wins Brazil jets deal after NSA spying sours Boeing bid (Original post)
dipsydoodle Dec 2013 OP
Blue_Tires Dec 2013 #1
madrchsod Dec 2013 #3
Tab Dec 2013 #7
BumRushDaShow Dec 2013 #13
Merlot Dec 2013 #12
MannyGoldstein Dec 2013 #2
billhicks76 Dec 2013 #4
MannyGoldstein Dec 2013 #5
NutmegYankee Dec 2013 #8
progressoid Dec 2013 #6
Pholus Dec 2013 #9
Mnpaul Dec 2013 #10
okaawhatever Dec 2013 #11

Response to dipsydoodle (Original post)

Wed Dec 18, 2013, 05:13 PM

1. So was it a price/technology/maintenance issue? or an NSA issue?

Since I'm reading two different accounts in the story?

I'm also guessing what *really* happened is Brazil tried to leverage the NSA scandal into a bigger Boeing 'discount' until they finally drew a line in the sand with a take-it-or-leave-it offer...

Either way, congrats to SAAB...Boeing could do with some stiffer competition until they finally learn that *superior product* is what closes the deal, and not politicking, boozing+schmoozing, discounted prices, outsourced jobs, etc. etc...

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Response to Blue_Tires (Reply #1)

Wed Dec 18, 2013, 05:36 PM

3. two good news stories for sweden.....

saab auto reopened and have the money for a all electric drive development. saab jet company has a great contract.


.

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Response to madrchsod (Reply #3)

Wed Dec 18, 2013, 07:36 PM

7. Saab auto re-opened?

Link?

I have my 9-5 wagon, and have been driving Saabs since I was 16 (35 years old). I would love it if their cars were back on the market.

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Response to Tab (Reply #7)

Wed Dec 18, 2013, 09:26 PM

13. Link

http://www.bbc.co.uk/news/business-25180698

But currently limited production and for the European market for now....

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Response to madrchsod (Reply #3)

Wed Dec 18, 2013, 08:50 PM

12. Saab all electric car? Where do I sign up?!!!

Any links for this? I'd heard China was interested in buying the Saab Automotive brand to make electric cars - is this that deal or was there something else?

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Response to dipsydoodle (Original post)

Wed Dec 18, 2013, 05:24 PM

2. But Boeing jets might have free 24/7 "security" monitoring

 

I guess Boeing kept that a secret.

Silly Brazilians.

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Response to MannyGoldstein (Reply #2)

Wed Dec 18, 2013, 05:40 PM

4. Nice Work NSA

 

Now your losing us jobs and contract too. Traitors.

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Response to billhicks76 (Reply #4)

Wed Dec 18, 2013, 05:53 PM

5. Why so glum, chum?

 

We can all slowly starve to death knowing that the bankers are safe? Is that really so terrible?

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Response to MannyGoldstein (Reply #5)

Wed Dec 18, 2013, 08:06 PM

8. Nah, we won't starve.

In the end we can always eat the bankers.

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Response to dipsydoodle (Original post)

Wed Dec 18, 2013, 07:16 PM

6. Oopsies.

Maybe we can get the DOD to commission some more un-needed aircraft to make up the difference.

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Response to dipsydoodle (Original post)

Wed Dec 18, 2013, 08:23 PM

9. But, but, Brazil spies too!!!!! Bawl!

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Response to dipsydoodle (Original post)

Wed Dec 18, 2013, 08:47 PM

10. Karma

The NSA spied on Airbus to sour a contract with the Saudis.
http://en.wikipedia.org/wiki/ECHELON

In the early 1990s, the U.S. National Security Agency intercepted the communications between the European aerospace company Airbus and the Saudi Arabian national airline. In 1994, Airbus lost a $6 billion contract with Saudi Arabia after the NSA, acting as a whistleblower, reported that Airbus officials had been bribing Saudi officials to secure the contract.[24] As a result, the American aerospace company McDonnell Douglas (now part of Boeing) won the multi-billion dollar contract instead of Airbus

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Response to dipsydoodle (Original post)

Wed Dec 18, 2013, 08:48 PM

11. Sorry, I'm not buying it....there's a lot behind a decision like this, it's already been 10 yrs

since the process started, but the decision over NSA spying doesn't make sense. It could be a mitigating factor when considering but not the reason. Defense news says this:

"Incidentally, Saab’s defeat of Boeing comes just 12 days after the two companies announced a teaming effort on the US Air Force’s next-generation trainer.

While politics may have hurt Boeing, cost was the big reason Dassault was unable to stay in the competition, according to Richard Aboulafia, vice president for analysis with the Virginia-based Teal Group"

There are so many moving parts in an aircraft deal I doubt that one thing tanked it. Which leads us to the question of...is there something we're missing in the story?

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