Shares in Swedish aerospace firm Saab leapt by a third on Thursday after it beat U.S. and French rivals to win a $4.5 billion fighter deal with Brazil, strengthening its hand in competing for export orders for years to come.
Brazil's choice of Saab's Gripen single engine jet over Boeing's F/A-18 Super Hornet and Dassault Aviation's . Rafale showed the Nordic group could beat global aviation heavyweights, securing development of an aircraft that has been surrounded by doubts.
So far only the Swedish air force has bought new generation.
Gripens, with fellow neutral nation Switzerland poised for a deal and Brazil opting on Wednesday for a similar model. However, Saab was offering a cut-price deal at a time when defence budgets are being slashed in many nations.
"If Brazil, Sweden and Switzerland choose Saab, that makes it easier for other countries to select the Gripen as it removes the uncertainty surrounding the project," said Stefan Cederberg, analyst at SEB.
"If you are going to invest in new aircraft for the coming 30-40 years, the probability has increased considerably that you will do it with the Gripen system."
Saab said it would begin final negotiations on the contract on Friday.
Source: Reuters
