Swedish defence company Saab is now targeting the Philippines for potential sales of its JAS 39 Gripen fighter aircraft, following its recent successful bid in Thailand.
The Philippines recently announced plans to spend USD 33 billion on modernising its military, which includes acquiring medium-range missiles and modern fighter jets, according to senior defence officials. The country is reportedly looking to purchase 40 new aircraft as part of this initiative, with a decision expected later this year. Many analysts consider the JAS 39 Gripen a leading contender.
The defence procurement is partly driven by increasing tensions with China, particularly over the South China Sea, where the Philippines is seeking to strengthen its defences.
Sweden’s JAS 39 Gripen is competing with the United States' F-16 Block 70 made by Lockheed Martin, and Korean Aerospace Industries’ (KAI) KF-21 Boramae for the contract. While the US approved the potential sale of 12 F-16 aircraft to the Philippines in 2021, financial constraints have delayed the purchase. The total cost of the 10 F-16C and two F-16D Block 70/72 variants amounts to USD 2.5 billion, a price Manila has reportedly found prohibitive.
In response, the Philippines has been exploring more affordable alternatives, with Saab offering its JAS 39 Gripen as a potential solution. In June, the Philippines and Sweden signed an agreement titled "Implementing Arrangement Concerning the Procurement of Defense Materiel and Equipment," which outlines the procurement process for Swedish defence assets, including the Gripen jets.
Regional military observers believe this agreement brings the Philippines closer to acquiring a squadron of 12 to 14 Gripen aircraft, which would complement its existing fleet of FA-50 light fighter aircraft, manufactured by South Korea. If realised, the first of these Gripen aircraft is expected to arrive by 2027, with the final delivery scheduled for 2028.
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