Monday, 13 December 2021

"China is ready to incur losses": the price of the JF-17 fighter is reduced to win the tender

yinlei


«Китай готов нести убытки»: цена истребителя JF-17 снижена ради победы в тендере

December 11, 2021



The Chinese authorities are going to significant financial losses, trying to squeeze their competitor, the Indian light fighter Tejas, from the international market.


"Offering 30% off JF-17 jet shows China is willing to take a loss by offering cheaper jet than India-promoted Tejas"
- indicated in the publication Defense Security Asia.


The cost of the aircraft has been significantly reduced for the sake of winning the tender, which is being held by Malaysia, looking closely at several types of aircraft of the same type. In total, the country's air force intends to acquire 18 aircraft, as officially indicated, in the FLIT LCA class - "training aircraft - light fighter": 8 units of training aircraft for advanced training of pilots and 10 combat units.


"With a 30% discount, the price of the JF-17 Block III aircraft offered to Malaysia is $ 39.9 million per unit, which is cheaper than the Tejas-Mk1A, which is priced at $ 41.5 million each."
- stated in the Indian manufacturing company Hindustan Aeronautics Ltd (HAL).


According to the head of the enterprise, China's actions show that it is ready to give up any profit and incur losses, just to take away the Malaysian tender.

The JF-17 "Thunder" or FC-1 "Fierce Dragon" was developed jointly by the Chinese aircraft corporation Chengdu and the Pakistani aviation complex PAC. At present, both countries are actively promoting their product on the world market, even resorting to dumping, as in the described case.

In response, Indian HAL is ready to transfer the production of 30% of aircraft components to a local manufacturer, as well as to fulfill the order within 36 months after signing the purchase contract.

Overall, Malaysia is expected to spend $ 900 million on a procurement program for 18 FLIT LCA aircraft.

It is predicted that in the second stage of the purchase, another 18 FLIT LCA units will be purchased to cover the Air Force's need for 36 aircraft of this type.




JF-17 “Thunder” fighter: Details

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