Fighter jet contract
Still not off the ground
The two competitors for the "century's major fighter jet contract" were supposed to have put in their final bids on Monday, but by well into the afternoon, no news about a winner was leaking out.
American Lockheed Martin is locked against Sweden's Saab to produce the 48 new fighter jets that Norway needs.
After the European consortium pulled out of the bidding late last year, protesting against what they saw as an unfair playing field, the two candidates were left as the "last men standing".
Now is the day of confrontation, or resolution—perhaps both, but nobody is giving a peep about ho it will end.
Norwegian defence minister Strøm-Erichsen said: We have to choose between apples and pears," but she was completely mum on the price offers.
The two producers were equally tightlipped about how much it will cost to replace the aging F-16 jets.
Well, maybe not so tightlipped. "All I can say is that our offer is about NOK 20 billion (USD 4bn), said Lockheed Martin’s representative, vice-president Tom Burbage.
The costs don’t include operations and maintenance of the 48 fighter jets.
Meanwhile, Reuters reported that Sweden formally entered the contest for the multi-billion-dollar contract to supply the fighter jets to Norway on Monday, submitting a binding offer to sell 48 Saab-built SAABb.ST Gripen planes to its Nordic neighbour.
Sweden's Defence Material Administration, which handed in the bid documents on behalf of the Swedish government, said in a statement that the offer met all requirements specified by Norway and included a pledge by Sweden to operate the same version of the fighter as that offered to Norway.
The counties would thus be able to share development costs as well as any future modifications of the aircraft.
NATO member Norway intends to replace its ageing fleet of F-16s and has short-listed the Gripen and US F-35 "Joint Strike Fighter", developed by Lockheed Martin LMT.N. It had set a deadline of April 28 for bids.
Saab said in a separate statement it had submitted a response to an Indian Ministry of Defence request for proposals to supply combat aircraft to the Indian Air Force, offering to sell an updated version of the Gripen.
India plans to buy 126 multi-role fighter jets in a deal potentially worth as much USD10bn.
Contenders for the contract include the likes of Lockheed and Boeing BA.N, as well as manufacturers of Russia's MiG-35, France's Dassault Rafale and the pan-European Eurofighter.
Catherine Stein
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