Eurofighter, F-35 and SU-35 out of the race. Technology transfer playing a key role in the final decision phase in 2009.

13:10 GMT, October 6, 2008 Brazil's Air Force announced Wednesday that it will choose between U.S.-based Boeing Co., France's Dassault and Saab of Sweden for the renewal of its fleet. Boeing Co. offered its F-18 E/F Super Hornet, while Dassault Aviation's Rafale and Saab's Gripen NG, are its competitors.

The programme foresees 36 new planes to replace the ageing Dassault-made Mirage fighter jets. The programme is worth some $2.5 billion (€1.9 billion), with the first deliveries set for 2014. However, the country's Air Force intends to replace its entire fleet over the next 15 years with new next-generation, multi-role fighter jets. That could increase the size of the jet order to more than 100 aircraft.

This decision means also the elimination of the Eurofighter Typhoon, Lockheed Martin's F-35 Lightning II and Russia's Sukhoi SU-35, which Brazil's neighbour Venezuela has bought recently.

Even though Brazil’s Air Force did not say when it will make a final choice in this competition (Experts expect Brazil to make a final decision late 2009), the remaining contenders already started to shift the decision into their specific directions. So, e.g. the U.S. Embassy encourages Brazil to buy the Boeing-built F-18 Super Hornet fighter jets on Thursday, just one day after this announcement.

A key factor for the final decision surely will be the technology transfer - a major demand by Brazil's government as it upgrades its armed forces. Therefore, the selection of the F-18 came as surprise because high-ranking Brazilian officials confirmed recently that France and Russia were willing to provide a higher level of defence technology transfer than the U.S.

Latin America's largest country is looking to link its purchases of fighter jets to other important defence programmes. The aim is to receive state-of-the-art technology helping to develop an own, national defence industry. We will not simply be buyers or clients, but partners," Strategic Affairs Minister Roberto Mangabeira Unger told Associated Press earlier this month. "Any arrangement into which we will enter must, in principle, contemplate a significant element of research and development in Brazil." Therefore, Brazil will look after a generous technology transfer package, which could include local assembly and the local performance of maintenance on the aircraft.

France this year promised to provide Brazil to transfer most of the technology to build the Scorpene attack submarine, a conventional diesel-powered vessel. Brazil hopes to use this French technology to develop what would be Latin America's first nuclear-propelled submarine. The country is expected to sign a strategic defence alliance with France in December becoming thus a very important strategic partner for France and for French defence industry.

This fact seems to put the French Rafale into pole position if the U.S. site does not decide to change its transaction policy. The U.S. government, which would buy the aircraft from Boeing and sell them to the Brazilian government, has the last word on technology transfer.

“We are getting down to work and will do everything in our power to present the Brazilian government a proposal that fully meets both the operational needs of the air force and the technological and industrial needs of the country. Our longstanding cooperative relations with Brazil, first with the Mirage III and then with the Mirage 2000, mean that we are particularly keen to ensure the continuation of this relationship by proposing a long-term partnership based on the Rafale”, stated Charles Edelstenne, Chairman and Chief Executive Officer of Dassault Aviation. (Update Oct, 13)

A spokesman of Gripen International said that the country could count on "full support regarding spare parts, logistics and training." Saab defence group of Sweden – the owner of Gripen International – stated that it will be open for any share of know-how and transfer of technology to Brazil as part of a possible package.

However, Defence Minister Nelson Jobim said that the tender is totally open. Each of the three finalists offers "engineering of the highest sophistication," he said to Agencia Estado.