The French aircraft manufacturer Dassault Aviation, behind the Rafale jets, has suffered its biggest financial setback as a result of the poor performance of Indian Air Force fighter jets during recent hostilities with Pakistan. The tensions have brought into question the effectiveness of Rafale aircraft, leading to a sharp decline in investor confidence.
Over the past week, Rafale company shares have dropped by 9.5%, falling from 331 euros to 299 euros. This decline has caused significant anxiety among investors and directly impacted the company’s financial stability. Experts point out that the inclusion of Rafale jets in the recent confrontations with Pakistan and the Indian Air Force’s flawed strategy have diminished the jet’s utility and reputation.
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Not only in India but also among other potential buyers, criticism of Rafale’s performance is increasing. This skepticism has serious implications for future sales and the aircraft’s credibility in the international defense market.
Meanwhile, Chinese aircraft manufacturing company Chengdu has seen a notable increase in its stock prices over the same period, reflecting shifting investor confidence in alternative defense technologies.
This development underscores the geopolitical and military consequences of operational performance, affecting the financial health of leading defense contractors and altering strategic balances.
