CHRISTCHURCH, New Zealand — The Swedish government’s offset package has proved decisive in Thailand’s decision to purchase 12 Gripen E/F fighters in three phases.
The economic and technology garnishes helped Saab’s Gripen offer defeat its American F-16 Block 70/72 competitor.
On June 4, the Royal Thai Air Force – or RTAF – held a press conference to announce it was buying more Gripens, with the deal accompanied by a generous package of technical support and offsets.
When final offers were submitted last August, Saab had vowed, “The Swedish proposal will ensure the best return on investment for Thailand that will exceed the contract value through a well-structured, long-term plan that covers key areas of critical technologies and national capabilities for Thailand.”
Saab’s offset package – equating to around 155% of the project’s value – has proved especially appealing to a nation keen to boost its aerospace industry and self-sufficiency.
“The offset committee conducted negotiations with Saab concerning the defense offset proposal with the aims of maximizing benefits and complying with the policies of the government and the minister of defense,” the Thai air service said in a statement:
A key element in Sweden’s proposal is Thailand’s unique, Saab-developed Link-T data link. Currently, only a handful of Thai aircraft and several warships are equipped with it.
Bangkok now gains intellectual property rights for Link-T’s unrestricted use and expansion. “Saab will transfer Link-T development capabilities to the RTAF and local defense industry,” reads the service’s statement.
Link-T will enhance Thailand’s ability to perform multi-domain operations. With the U.S. keeping tight control over its data links, Lockheed Martin’s F-16 offer could not compete in this regard.
Thailand’s two Saab 340 airborne early warning aircraft will be upgraded, too, with Thai participation. Additionally, a local Gripen maintenance, repair and overhaul hub will be established.
Furthermore, Thai companies will join the Gripen supply chain with opportunities to make components like tires, bearings, clamps and airframe parts.
Training support covers 26 personnel, made up of six pilots, 18 maintainers and two support staff. From 2025-29, Saab will provide a mission support system for network-centric flight planning and training, plus a maintenance ground support system for logistics management and maintenance.
Saab welcomed its selection, stating: “In addition to Gripen E/F fighter aircraft and associated equipment, Saab’s offer includes a long-term offset package. This will benefit the national security and strategic independence of Thailand, while also bringing new jobs and investments to a range of Thai society sectors.”
Thai Gripen E/Fs will come with a Raven ES-05 radar, SkyWard infrared search and track, Arexis electronic warfare suite, a targeting pod and standoff weapon capability, Link-T, Meteor and IRIS-T missiles, and Targo helmet-mounted display.
The initial batch comprises three single-seat Gripen Es and a twin-seat F, to be procured for 19.5 billion baht (nearly US$600 million) from FY2025-2029.
Eight more Gripen E/Fs will be delivered through FY2034, replacing aging F-16A/B fighters in 102 Squadron.
Thailand’s aircraft choice followed a decision publicized on Aug. 27, 2024 that the Gripen had been nominated. Now with the selection approved, the air force said the procurement contract would be signed in August.
Gordon Arthur is an Asia correspondent for Defense News. After a 20-year stint working in Hong Kong, he now resides in New Zealand. He has attended military exercises and defense exhibitions in about 20 countries around the Asia-Pacific region.