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Analysis: European defense contracts

By LEANDER SCHAERLAECKENS, UPI Correspondent

BRUSSELS, Nov. 5 (UPI) -- France looking to boost export

A new French scheme that will come out early next year will have to boost its national weapons exports from around $7.23 billion a year to $10.12 billion a year by 2010. The plan, laid out by French Defense Minister Herve Morin in an interview with Les Echos, should launch France back into competitiveness with its sales rivals the United States and Russia.

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The plan comes on the back of another major setback when France failed to seal the deal on the sale of its Rafale fighter jets to Morocco last month. This prompted President Nicolas Sarkozy to establish a high-level sales team consisting of the president, several ministers and the armed forces chief of staff.

Morin hopes to match the 2006 sales total of $7.23 billon this year and boost sales by another $2.89 billion over the next three years.

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“We absolutely have to improve our organization and make sure France speaks with only one voice,” Morin said. “We need better cooperation between the industry and the state and make sure information is transmitted in real time.”

Insiders blamed the failure with Rafale, which has yet to be sold to anyone but the French armed forces, to a lack of coordination and reactivity on the part of French authorities when the United States made a highly attractive offer to the Moroccan government, according to Yahoo! News France.


BAE out of running for Emirates contract

The United Arab Emirates’ air force will not be equipped by BAE System’s Hawk jet trainer, according to Defense News.

The British company, which was hoping for the contract that would commit to the purchase of 35 to 40 aircraft, has been eliminated from the race. The Emirates are looking to renew their old Hawk-based pilot training system to include the Lockheed Martin F-16 Block 60 and Dassault Mirage 2000.

BAE has confirmed it is out of the running and said in a news release: “We are disappointed to learn that the Hawk has not been successful in the competition to meet the UAE Air Force and Air Defence’s fast-jet training requirements.”

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The two products remaining in the competition are Italy’s Alenia Aermacchi M-346 and South Korea’s Korean Aerospace Industries T-50. Alenia Aermacchi is also in a race with Embraer and Pilatus to supply the Emirates' air force with basic trainers, according to Defense News.

BAE says it has sales prospects pending in Bahrain, Qatar, Kuwait, Oman and Saudi Arabia.


KBP late on Pantsir delivery

Russian KBP Instrument Design Bureau, which has a contract worth more than $3 billion with the United Arab Emirates to supply it with 50 96K6 Pantsir-S1 missile air defense systems, will only be able to deliver two of the agreed 12 systems this year, according to Jane’s Defense News.

In the original agreement, KBP committed to deliver 12 units this year, 24 in 2008 and 14 in 2009. The delay is due to a setback in the trials of the first prototype that was due to be completed at the end of last month.

The delivery schedule has been amended, and delivery should be completed by 2010.


Iran purchases fighters from Russia

Russia, Iran and China have agreed on the sale of 24 Chengu J-10 fighter jets over the next three years, RIA Novosti reported.

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Although there is uncertainty as to the exact nature of the sale, since China has denied its existence and Russia has confirmed it, it is unsure if this means Iran has ceased to negotiate over a shipment of Sukhoi Su 30-MKs, according to Jane’s.

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