By Carola Hoyos, Defence Correspondent
In defence, the week?s big news – and even bigger surprise – was India?s choice of a French jet fighter over the pan-European Typhoon in a contract that could be worth $20bn. The win was a lifeline for Dassault, whose Rafale jet has not secured a single export order.
For Eurofighter, India?s decision to grant the underdog preferred bidder status was a significant setback, leaving it peddling for smaller export contracts in the Middle East, Malaysia and South Korea.
Politically, the loss was embarrassing for David Cameron, UK prime minister, and Angela Merkel, German chancellor, who had lobbied heavily.
Mr Cameron came under fire from his own party for not doing more for British defence companies, even though his efforts have been lauded by the industry as an improvement on the previous government. He vowed to lobby on for what some view as the superior jet, with greater agility, newer technology and the prospect of more flexibility.
For Germany, Italy, Spain and the UK and the companies involved – including BAE Systems and Rolls-Royce of the UK, Italy?s Finmeccanica and pan-European EADS, which led the Indian pitch – the news has led to soul-searching and a redoubling of their efforts.
The decision, which was based on Rafale?s lower sticker price, could be overturned, given India?s history of changing its mind, often before a contract is signed, the losing side and industry analysts stressed.
? The Financial Times Limited 2012