By Xavier Kong
The Royal Malaysian Air Force (RMAF), which is looking to replace its fleet of 18 Russian-made Mikoyan-29N Fulcrum jet fighters, will soon be accepting tenders for multi-role combat aircraft (MRCA) from defence aviation companies.
Industry sources told KiniBiz that Malaysia is going to accept proposals soon, though Defence Minister Hishammuddin Hussein has stated that Malaysia has not made any decision on whether or not to replace the aging MiG-29N Fulcrums in RMAF’s fleet.
At an average cost of around US$100 million (RM322 million) per fighter with supporting equipment, maintenance, and training, the cost of 18 fighters is likely to be around RM6 billion, sources said.
In March last year, Malaysia had shortlisted five fighter jets as potential replacements for the flagging MiG-29Ns: the Eurofighter Typhoon by the European consortium of BAE Systems, European Aeronautic Defence and Space Company (EADS) and Finmeccanica; the French-based Dassault Aviation’s Rafale; Boeing’s F/A-18E/F Super Hornet; the Russian-made Sukhoi-30 Flanker-C, and Swedish firm Saab’s JAS-39 Gripen.
The Eurofighter Typhoon
BAE Systems representative Andy Latham had stated that the consortium “did not want to pressure the Malaysian government into making a choice right now, in light of what happened recently with MH370.” Latham further commented that the consortium would be “ready with a tender” and provide solutions to the requests the Malaysian government has with regards to its next fighter.
Also noted is that the Eurofighter Typhoon has sold more to foreign countries than its competitors, with 99 Typhoons having been sold to 3 different nations already. “I think that speaks for itself, that three other nations have found the Eurofighter Typhoon as the answer to their defence requirements over our competitors.” said Latham.
According to Bloomberg, the price of a new Eurofighter Typhoon is in the vicinity of US$100 million, or RM324.25 million. The price for the leased aircraft, if Malaysia were to take that route, was not revealed to KiniBiz.
Swedish Saab’s JAS-39 Gripen
Swedish Saab is calm as well, in the light of there being no updates from the Malaysian government. Kaj Rosander, head of marketing and sales for Saab’s Gripen fighter, states that the operational cost of a Gripen per month is approximately US$4700, with the F-16 Fighting Falcon almost double that amount, while the Eurofighter Typhoon and the F/A-18 Hornet are nearly triple that.
Rosander also noted that there is essentially no difference between leasing and acquiring, in this case, as it is just a matter of payment over time versus a one-off payment. Saab, as the only aviation defence contractor to lease its aircraft, also has the experience, citing Czechoslovakia and Hungary as two of its clients.
“Not only do we have the experience in leasing aircraft, there is also a Swedish company support agency, which helps Swedish companies, even subsidising costs for products bound for export. I believe this will serve to lower prices, and make either acquiring or leasing Gripen much more manageable.” said Rosander.
Saab’s JAS-39 Gripen, or Griffin, is estimated to cost between US$50 to US$60 million per fighter for acquisition, with the lease price to the Czech Republic at US$1 billion for 10 years for 14 aircraft. The lease price for Malaysia, as well as the number of aircraft offered by Saab, were not revealed.
Saab also plans to pitch its Erieye airborne early warning and control aircraft to Malaysia, similar to the company’s deal with Thailand, and has selected DRB-Hicom as the company’s local partner, as the company is already part of its team to secure the airborne early warning and control programme in Malaysia.
Russia’s Su-30
Sukhoi was represented by Rosoboronexport at the Defence Services Asia Exhibition 2014, and it was there that KiniBiz got a little bit more info about what Russia plans to field in its proposal to Malaysia for the multi-role combat aircraft tender.
According to Kirill Bychkov of Rosoboronexport’s press office, the Russian export firm is likely to field the Sukhoi-30 Flanker as its aircraft of choice for Malaysia’s replacement of the MiG-29N Fulcrum, or “Smokey Bandit” as it is affectionately called by our pilots, multi-role combat aircraft. “Of course, not the Su-30MKM, but a different variant.” clarified Bychkov. However, no further details could be obtained.
Military analysis network FAS.org has noted that a new Su-30 would cost approximately US$34 million, or about RM113.29 million.
Boeing’s F/A-18E/F Super Hornet
Boeing, with its F/A-18E/F Super Hornet, will also be participating in this tender, though the company shares the sentiments of BAE Systems in “not wanting to pressure or rush the Malaysian government into making a choice.”
However, Ron Yap, a public relations consultant for Boeing, stressed that “though now is not the time, there will be a time.”
The cost of a brand new F/A-18E/F Super Hornet is in the ballpark of US$67 million, according to the FY13 budget submission by the United States Navy to the President’s Office.
French-based Dassault Aviation’s Rafale
Dassault Aviation, however, are hiding nothing with regards to their thoughts on the tender, as they reveal that their flagship aircraft, the Rafale, will be the aircraft of choice in their proposal when the Malaysian government calls.
“We cannot say anymore about the tender,” stated head of export military communication Nathalie Bakhos, who, however, did put KiniBiz in touch with the augmented reality system that was unveiled at the exhibition. The system, which is used in the company’s design lab in Paris, France, utilises a three-dimensional mock-up that would “allow the fast-tracking of training and ease operational maintenance.”
The cost of a new Rafale C aircraft, one of the models likely to be pitched to Malaysia, is said to be in the ballpark of US$88.8 million, or RM287.44 million
Dassault Aviation had also signed a memorandum of understanding with Universiti Sains Malaysia to collaborate on research, with one particular example being the “Siswa Unmanned Aerial Vehicle competition, of which students from Universiti Sains Malaysia have taken part in,” according to Daniel Fremont, the area marketing and sales manager.
Professor Muhamad Jantan, deputy vice-chancellor of research and innovation at Universiti Sains Malaysia, noted that “Dassault Aviation has agreed to be our gateway to other institutes and organisations.”
The memorandum of understanding was signed as part of a cooperation programme, which is an offset programme, and in accordance with the Malaysian Ministry of Defence’s requirements for the future acquisition of multi-role combat aircraft for the Royal Malaysian Air Force.
An offset programme is essentially a return of investment for the government that purchases defence products from a company, “kind of a ‘what do we get if we buy defence products from you’ kind of thing,” and “is really very common.” This offset programme also covers potential suppliers, rather than just current suppliers.
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