Dassault Aviation SA won its first export customer for the Rafale combat jet after Egypt announced it will buy 24 of the planes from the French manufacturer as part of an arms package worth ^5 billion ($5.7 billion).
Egypt will also purchase a French frigate and associated armaments, Francois Hollande told reporters in Brussels, confirming the value for the order.
"This contract is important for our companies, it is important for Egypt's security," Hollande said, adding that he agreed the outlines of the contract with Egyptian leader Abdel-Fattah el-Sisi on January 24 in Riyadh on the sidelines of King Abdullah's funeral.
Besides Dassault, other French companies supplying military equipment as part of the accord with Egypt include Thales SA, Safran SA, DCNS and MBDA. Hollande said the French government is providing a mix of loans and guarantees to help finance the order.
France, the Rafale's only customer until now, is eager to cut defence costs and has been pushing to help Paris-based Dassault secure export orders to help offset the cost of building the 11 planes each year needed to sustain production. A firm order from Egypt might encourage a deal with India, as well as with Qatar and the United Arab Emirates which have been weighing jet purchases.
"This first contract could raise hopes for others," said Hollande.
Egypt's air force flies mainly US-made F-16 fighters. The fleet also includes some Mirage jets, Dassault's previous combat model, as well as Russian MiG aircraft.
India's government chose Dassault in 2012 to supply at least 126 Rafales. Contract signatures on the $11-billion order have been delayed by a requirement for quality guarantees from the manufacturer for planes to be made locally under licence by Bangalore-based Hindustan Aeronautics Ltd.
