From DefenseNews

 

Posted 10/16/07 16:16

Thailand Picks Sweden’s Gripen for $1B Fighter Deal

By AGENCE FRANCE-PRESSE, BANGKOK

 

Thailand will purchase 12 Swedish-made jet fighters over the next decade for 34.4 billion baht ($1 billion), the head of the air force said Oct. 17.

The first lot of six JAS-39 Gripen fighters will be bought by 2011, with a second lot of six jets purchased by 2017, air force chief Chalit Phukphasuk told reporters.

The Gripens, manufactured by Sweden’s Saab, will replace aging American F-5E fighters, which will be rotated out of service in 2011, he added.

"It is necessary to purchase the new jet fighters to replace the retiring fighters, to boost the air force’s ability to protect the country," he said.

Thailand had considered U.S.-made F-16s and Russian SU-30s before settling on the Swedish jets, Chalit said.

The deal includes spare parts and training for Thai pilots, with the first order valued at 19 billion baht, and the second half at 15.4 billion baht, he said.

In addition to heading the air force, Chalit has also taken over the leadership of the junta that seized power in a bloodless coup toppling prime minister Thaksin Shinawatra in September 2006.

The coup leader, General Sonthi Boonyaratglin, retired last month and has joined the government as a deputy prime minister.

Since the takeover, military spending has skyrocketed to 140 billion baht in the budget for 2008, up from 29 billion baht the year before the coup.

The jet purchase had been in the works under Thaksin’s government but was repeatedly held up by budget constraints. Thaksin had tried to work a deal to barter chickens or rice for the planes, but to no avail.

Now the military is on a shopping spree, ordering 96 Ukrainian armored vehicles for $133 million in August and looking at weapons from Israel.

The military has justified the burst of spending by arguing that Thai forces have been using equipment that dates to the Vietnam War, and that defense spending has been on hold since the 1997 Asian financial crisis.

From Defense Aerospace

 

Thailand Selects Gripen and Erieye

(Source: Saab AB; issued Oct. 17, 2007)

 

In Bangkok, Thailand yesterday the Thai government announced the down-selection of the Saab Gripen new generation fighter, and the Saab Erieye Airborne Early Warning (AEW) system to meet its national defence needs.

 

The Thai Cabinet has approved a budget of 34,400 million baht (US$ 1.1 billion) for the Royal Thai Air Force (RTAF) to procure twelve Gripen multi-role fighters, to replace its ageing fleet of F-5 B/E aircraft, and two Saab Erieye AEW aircraft, together with associated equipment and services.

 

Negotiations between Thai and Swedish government officials will now commence in order to conclude a formal agreement.

 

A two-phase procurement process

 

The procurement process is divided into two phases. Phase 1 covers the procurement of six Gripen fighters, including spare parts and training, and one Saab Erieye AEW system aircraft in the sum of 19,000 billion baht (US$ 600 million), within a five-year budgetary commitment from 2008 to 2012.

 

In Phase 2, the RTAF intend to procure an additional six Gripen fighters together with associated equipment, spare parts and training, and a second Saab Erieye AEW system aircraft in the sum of 15,400 billion baht (US$ 500 million) within a five year budgetary commitment from 2013 to 2017.

 

 

Swedish Minister for Foreign Affairs welcomes the decision

 

Swedish Minister for Foreign Affairs, Carl Bildt says in a comment on Thailand and Gripen. “I welcome the decision from the Royal Thai government to start negotiations with the Swedish government, to purchase Gripen fighter aircraft and the Saab Erieye Airborne Early Warning (AEW) system. This decision once again confirms that Gripen is a world class and cost effective system. The selection of Gripen was made in fierce competition with advanced US and Russian systems”.

 

“We must now wait for the result of the formal negotiations that will now commence between the Swedish and Thai authorities. When a formal agreement is in place, this will be managed in accordance with the appropriate export legislation, rules and regulations” he stated.

 

Replacement has been evaluated since 2003

 

Since 2003, the RTAF has been evaluating a suitable replacement for its ageing fleet of F-5 B/E fighters to undertake the air defence and protect the national interests of the Kingdom of Thailand. In its evaluations, the RTAF considered the requirements of suitable new generation aircraft to replace its F-5 B/E aircraft, including the need for true multi-role/swing-role capability, new generation flight control systems, communications systems, avionics systems and a weapons system. The new aircraft needed to be capable of joint operations and tactical data linking with allied ground, maritime and air forces, within an effective command and control system. In addition, the costs of operation, maintenance and through-life costs needed to be the lowest of aircraft of the same type.

 

Following its evaluation process, and in consideration of these critical performance issues, the RTAF has selected the Gripen multi-role fighter, manufactured by Saab to meet its future defence needs.

 

Will be delivered into operational service in 2010

 

It is planned that the new Gripen fighters will be delivered into operational service in 2010. Sweden has also offered the Gripen fighters with a 2 (two) years maintenance and spare parts support package.

 

Moreover, other benefits in the form of Thai – Sweden co-operation are proposed to enhance economic security – such as industrial co-operation, maintenance and logistics co-operation, technology transfer, investment co-operation, export as well as science and technology.