Thailand’s decision to acquire 12 Gripen E/F fighter jets in three phases was heavily influenced by the Swedish government’s attractive offset package. The economic and technological benefits provided by the deal gave Saab’s Gripen an edge over its main competitor, the U.S.-made F-16 Block 70/72.
On June 4, the Royal Thai Air Force (RTAF) held a press conference to confirm the procurement, highlighting the comprehensive support and offset commitments bundled with the purchase. When final proposals were submitted in August last year, Saab emphasized that its offer would deliver exceptional value to Thailand through a detailed, long-term plan aimed at advancing critical technologies and national capabilities. The offset value, reportedly around 155% of the contract, was particularly compelling to Thailand, which is focused on strengthening its domestic aerospace sector and achieving greater self-reliance.
According to a statement from the RTAF, negotiations between Saab and Thailand’s offset committee prioritized maximizing local benefits in alignment with government and defense ministry policies. A key feature of the Swedish offer was the inclusion of the Saab-developed Link-T data link, currently limited to select Thai aircraft and naval vessels. The new agreement grants Thailand full intellectual property rights for Link-T, enabling its unrestricted development and deployment. Saab will also transfer the necessary development expertise to the RTAF and local industry partners.
The integration of Link-T will significantly enhance Thailand’s capability for multi-domain operations. In contrast, the U.S. maintains strict control over its data link technologies, placing Lockheed Martin’s F-16 proposal at a disadvantage in this area.
The deal also includes upgrades to Thailand’s two Saab 340 airborne early warning aircraft, with local participation. A maintenance, repair, and overhaul (MRO) center for Gripen aircraft will be established domestically, and Thai companies will be integrated into the Gripen supply chain to produce components such as tires, bearings, and structural parts.
Training provisions cover 26 personnel: six pilots, 18 technicians, and two support staff. From 2025 to 2029, Saab will also deliver a mission support system for advanced flight planning and training, as well as a ground-based system for maintenance and logistics.
Saab expressed enthusiasm over the contract award, noting that, beyond the aircraft and equipment, the long-term offset program would enhance Thailand’s national security, promote strategic autonomy, and stimulate employment and investment across various sectors.
The Gripen E/F jets destined for Thailand will feature advanced systems such as the Raven ES-05 radar, SkyWard infrared search and track, Arexis electronic warfare suite, a targeting pod, and long-range standoff weaponry. They will also come equipped with Link-T, Meteor and IRIS-T missiles, and Targo helmet-mounted displays.
The first batch—comprising three single-seat Gripen Es and one twin-seat Gripen F—will be acquired between fiscal years 2025 and 2029 at a cost of 19.5 billion baht (approximately $600 million). An additional eight fighters will follow through fiscal year 2034, gradually replacing the aging F-16A/Bs in the RTAF’s 102 Squadron.
The aircraft selection followed an announcement made on August 27, 2024, confirming the Gripen as the chosen platform. With official approval now in place, the procurement contract is expected to be signed in August.
