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

[dipsydoodle]

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

[Blue_Tires]

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...

[madrchsod]

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.


.

[Tab]

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.

[BumRushDaShow]

13. Link

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

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

[Merlot]

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?

[MannyGoldstein]

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

I guess Boeing kept that a secret.

Silly Brazilians.

[billhicks76]

4. Nice Work NSA

Now your losing us jobs and contract too. Traitors.

[MannyGoldstein]

5. Why so glum, chum?

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

[NutmegYankee]

8. Nah, we won't starve.

In the end we can always eat the bankers.

[progressoid]

6. Oopsies.

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

[Pholus]

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

[Mnpaul]

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

[okaawhatever]

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?