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Saab wins Brazil jet deal after NSA spying sours Boeing bid

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Alonso Soto and Brian Winter
Reuters
December 19, 2013

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 contract, negotiated over the course of three presidencies, will supply Brazil’s air force with 36 new Gripen NG fighters by 2020. Aside from the cost of the jets themselves, the agreement is 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 Co, France’s Dassault Aviation SA was a contender for the contract.

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.

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This article was posted: Thursday, December 19, 2013 at 6:50 am





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