Rafale maker Dassault fails to ramp up production, desperate for defence deal with India

Paris: French company Dassault is hoping to seal a deal with India for 114 Rafale fighter jets by the end of this year. But the question is whether the French company will be able to fulfill its order quickly? Dassault has a huge backlog of production of Rafale jets, which means it is struggling to fulfill the orders it has received.

The French airframer had 220 orders for Rafale fighter jets until December 31, 2025. Of these, 175 Rafales are to be delivered to various countries, while 45 are for the French Air Force. Meanwhile, India announced in February that it had decided to purchase the Rafale to meet its multi-role fighter aircraft needs.

What does France want?

France wants to finalize the Rafale deal with India this year. Dassault Chief Executive Eric Trappier addressed this issue during a press briefing on March 4. He was asked when the deal for 114 Rafales with India is expected to be completed. To this, he said, "We want to ensure that the contract is signed this year. Will that happen? We'll see next year."

India's primary condition for the Rafale deal is 'Make in India'. India wants at least 50 percent indigenous manufacturing. Dassault has already signed a deal with Tata Advanced Systems to source the Rafale fuselage section. This is the first time fighter jet parts will be manufactured outside France, and the deal will also establish a local final assembly line.

Waiting for a signal from the French government?

According to Flight Global, Dassault is awaiting a signal from the French government regarding its plans for a potential Rafale order. The French government has signed a Tranche 5 agreement with Dassault for 42 jets, but it is not yet clear when the Tranche 6 deal will be completed.

Trappier says questions about timing should be directed to the French DGA, the military procurement agency. But he also said that France's production rate is currently very low, due to budgetary constraints. Dassault delivered 11 jets to the French Air Force last year. This rate is likely to remain the same.

Napier said, "It's not that we don't want to increase the production rate, but if you want to increase it, you have to provide cash." In total, Dassault plans to deliver 28 Rafales this year, two more than the 26 planned for 2025.

What are the problems with Dassault Aviation?

Dassault Aviation cited budgetary constraints. In addition to the Rafale, Dassault is also developing several special mission aircraft based on its business jets for the French government. These include the Falcon 2000LXS-derived Albatros for maritime surveillance and response. It made its first flight on January 24th and will be delivered this year.

The French government has expressed great confidence in it. Dassault was awarded an order for five more aircraft at the end of 2025, bringing the total to 12.

How did Dassault report its earnings?

Dassault reported that the company sold a total of €7.4 billion (approximately €6.6 lakh crore) in the year. Of this total, €4.6 billion came from defense sales (weapons and fighter jets). Revenue increased compared to the previous year. Total sales in 2024 increased from €6.2 billion to €7.4 billion.

However, the company's backlog has increased further. Backlog refers to orders that have been received but are yet to be delivered and fully processed. Dassault documents show that the company has a total of €46.6 billion in pending orders. The largest share (€33.8 billion) comes from exports to other countries (such as India, Indonesia, or the Middle East). France reserves €8.1 billion of this in orders for its own military.