Chile has postponed indefinitely the $600 million purchase of up to 24 new fighters, following Government budget cuts forced by the effects of the Asian economic crisis.
Buffeted by falling copper prices and a growing budget deficit, the Chilean Government has imposed austerity measures, including "temporarily" delaying the fighter purchase, which would have been charged to the 1999 budget.
Four bidders - Boeing, Dassault, Lockheed Martin and Saab - had submitted best and final offers at the end of May and were hoping for a selection by the end of June. No new date for a decision has been set, although competitors are continuing to talk to the Chilean Govern-ment in the hope of salvaging the programme, possibly through an interim leasing deal.
The aircraft would have been paid for from the Chilean military's 10% share of copper export revenues, but these fell by two-thirds in the first quarter of the year because of the Asian crisis.
The Government says the decision to suspend the purchase of new fighters was agreed "in good will" with the Chilean air force after analysis of the economy.
Source: Flight International
