Gilbert Sedbon/PARIS
FRENCH DEFENCE minister Francois Leotard has dismissed industry opposition to the Government's aim of cutting 2% a year from the costs of the Dassault Rafale combat aircraft as part of its overall drive to curtail defence expenditure (Flight International, 11-17 January).
Commenting on the 2% cut, L‚otard says: "We are very tenacious on this. It is conditional for the success of the five-year 1994-8 arms-procurement policy, the defence-funding plan known as the Loi de programme militaire. I therefore stand very firm on this question."
Because of the price cut, Snecma has already refused a production order for 25 M88-2 engines for the first batch of Rafale combat aircraft earmarked for the navy.
Snecma's recently appointed chairman, Bernard Dufour, has made his displeasure public over what amounts to an 8% cut in the value of the order over the next four years.
L‚otard remains confident, despite the outburst by Dufour and predictions by Serge Dassault, chairman of Dassault, that industry will systematically resist the Government's demands.
"Negotiations are going on," says Leotard. "I believe we will solve this question in due course," he adds.
Senior Government officials are adamant that, if the 2% reduction in procurement costs is not achieved, then some defence projects will either have to be postponed or cancelled.
Source: Flight International
