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US Spying Costs Boeing Military Jet Deal With Brazil

An anonymous reader writes with this excerpt from a Reuters report shedding light on one consequence of increasing knowledge of the extent of U.S. government spying: "Brazil awarded a $4.5 billion contract to Saab AB on Wednesday 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 timing of the announcement, after more than a decade of off-and-on negotiations, appeared to catch the companies involved by surprise. Even Juniti Saito, Brazil's top air force commander, said on Wednesday that he only heard of the decision a day earlier in a meeting with President Dilma Rousseff. Until earlier this year, Boeing's F/A-18 Super Hornet had been considered the front runner. But revelations of spying by the U.S. National Security Agency in Brazil, including personal communication by Rousseff, led Brazil to believe it could not trust a U.S. company."

3 of 439 comments (clear)

  1. Aircraft facts by Anonymous Coward · · Score: 5, Informative

    Just for info : they have decided for the better plane.
    The JAS SuperGrippen (Grippen NG) has a much larger ferry and combat range (twice as much as the F/A18), is a lot faster (Mach 2.2, even faster than the F35), more agile AND cheaper both in initial costs and per flight hour. It's comparable to the Eurofighter. Except that the JAS 39 NG has the much better radar.
    It has a bit lower weapon payload, though (5.3 metric ton (JAS39) vs 6 metric ton (F/A18)). But for the cost of one american plane, you can buy two JAS39 and thus have air superiority.

  2. Re:This is only one tree in a big forest by Anonymous Coward · · Score: 5, Informative

    I live in Brazil and you couln't be more wrong. We have a consolidated democracy and will elect a new president in 2014 (and governors), it's that simple. Yes, we do have a massive income distribution program, but it's not used politically as much as it have could been.

  3. Re:Boohoo by macpacheco · · Score: 5, Informative

    The Super Hornet was never the favorite of the Brazilian Air Force.
    Unlike other serious govts in the world, here we had the favorite of the Air Force and the favorite of the president.
    It was the favorite of the Air Force because:
        - Lower cost both procurement and operational costs (I could joke there my Brazil don't have an air force, instead it has an air farce)
        - better air to air performance (let's face it, Brazil hasn't had a single bomb dropped in a military operation since WWII, what we need is air defense, the Super Hornet excels at being a bomb truck, even US Army Hornet pilots have admitted the SH leaves something to be left desired against even a much older Mig29 in a dog fight)
        - Generation 2 AESA radar with full technology transfer
        - Full technology transfer on the aircraft itself
        - Local manufacturing of most aircraft under license
        - Prospect of a partnership in future Gripen upgrades, Embraer will be the Brazilian partner on this, they have a world class track record on military and civilian aircraft sales, which dwarfs SAAB experience with exporting aircraft
        - You see, Boeing x Embraer would never be a really good partnership, Boeing is a competitor of Embraer in many markets (my forecast is Embratel will eventually produce a 737 sized aircraft, then they would become a full fledged competitor, but even the E-jets compete with 737 despite of the size difference)
        - The only advantage the SH had was it could be used on our single aircraft carrier, that stays in port the vast majority of the time

    The espionage scandal was just a good excuse to get back to basics and do the right thing.
    Buying the SH would have been a bad economic decision anyways.
    Brazil needs cheap military hardware, no F35's for us, ever. Even the SH would be too expensive in the long run (twin engine, part costs, fuel consumption)

    Realize the Brazil is operating F-5E, Mirage 2000, subsonic AMX, all aircraft that are cheap to operate.