Emirates Weighs Warplane Order

U.S. and French firms top a United Arab Emirates list to supply a crucial $6-billion warplane order, but Russia is still in the running with competitive pricing, Emirates military sources said Sunday.

“The U.S. and France are at the top of the list, Russia has a little chance and Britain is out” of the race to supply 80 long-range strike aircraft, a source said.

Warplane makers and governments alike are eager to secure the deal to save jobs at home and give their strapped aerospace industries a much-needed boost in a shrinking market.

The sources told Reuters that the Emirates is dropping a British offer to lease it Tornado planes to meet immediate needs while the Persian Gulf state waits for the development of the troubled next-generation Eurofighter 2000.

The leaders of several world powers, including President Clinton, have recently contacted Abu Dhabi to rally support for their companies in the fierce competition.

“The U.S. has a good chance of getting the deal,” said a source, who added that Washington is only “offering 80% of our needs.”

Lockheed Martin Corp. and McDonnell Douglas Corp. are in the running for the Emirates order with their F-16 and F-15 aircraft, respectively.

They face tough competition from France’s latest sea- and land-based Rafale, which conducted trials in the Emirates late last year. Paris is ready to fit the aircraft with its most advanced avionics and weapons systems.

One option under consideration is the Emirates mixing the order.

“Sharing and mixing is still a possibility. It would not be down the middle but say 60 aircraft from one company and 20 from another,” an official source close to the deal said.

Russia, unlike the United States, is ready to export top-of-the-line weapons and other systems along with the airframes. Its offer, the least expensive, is backed by several French firms to ease fears of lack of upgrades and service in the future.

The Emirates is seeking long-range strike aircraft “able to survive in a combat scenario” and not downgraded models of sophisticated warplanes.

“They must have an air defense role, interdiction, precision strike weapons and advanced electronic warfare capability,” said a source, in reference to U.S. resistance to release several systems for export.

There were indications the deal could be concluded early this year, but well-placed sources told Reuters oil-producing Abu Dhabi could announce its choice in the next five months, possibly in May.

Financing for the deal and the Emirates’ intention to purchase the aircraft from a world power committed to its security and stability by a joint defense pact also play a major role in the final decision.