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Saab wins $4.5bn Brazil fighter jet contract | Saab wins $4.5bn Brazil fighter jet contract |
(35 minutes later) | |
Swedish manufacturer Saab has won a $4.5bn (£2.7bn) contract to supply 36 fighter jets to Brazil. | Swedish manufacturer Saab has won a $4.5bn (£2.7bn) contract to supply 36 fighter jets to Brazil. |
The deal is one of the most valuable ones in emerging markets and Saab had faced competition from rivals Boeing and Dassault Aviation. | The deal is one of the most valuable ones in emerging markets and Saab had faced competition from rivals Boeing and Dassault Aviation. |
Many had expected Boeing or Dassault to emerge as the winner. | Many had expected Boeing or Dassault to emerge as the winner. |
The BBC's Gary Duffy in Sao Paulo says Boeing's whose cause was not helped by a recent row between the United States and Brazil over spying allegations. | |
The US National Security Agency (NSA) has been accused of intercepting emails and messages from President Dilma Rousseff, her aides and state oil company, Petrobras. | The US National Security Agency (NSA) has been accused of intercepting emails and messages from President Dilma Rousseff, her aides and state oil company, Petrobras. |
David Fleischer, a political scientist at the University of Brasilia, said that Ms Rousseff "had been favouring the Boeing plane and a lot of people thought she would announce her decision during her state visit to Washington". | |
"Boeing was very close but then the NSA booted them out of the air," he said. | |
The spying allegations were made by Rio-based journalist Glenn Greenwald, who obtained secret files from former NSA contractor Edward Snowden. | |
The claims led to Ms Rousseff cancelling her state visit to Washington, initially planned for October this year. | The claims led to Ms Rousseff cancelling her state visit to Washington, initially planned for October this year. |
Brazil had delayed the decision on awarding the contract for many years. | |
Defence Minister Celso Amorim said the authorities, "took into account performance, the effective transfer of technology and costs - not just of acquisition but of maintenance" while finalising the supplier. | |
Brazil's decision comes just weeks after Boeing lost out to Lockheed Martin in the run to win a multi-billion dollar fighter jet deal in South Korea. | |
Boeing had been considered a front runner in that deal as well, until Seoul decided to restart the tender process. |