Royal Thai Air Force Commander-in-Chief Air Chief Marshal Panpakdee Pattanakul will travel to Sweden on Sunday 25 August to sign a contract for the purchase of four Saab Gripen E/F multirole fighter jets. Sweden’s Minister of Defence will attend the signing ceremony as a witness.
The deal, approved by the Cabinet on 5 August, has a budget of 19.5 billion baht for the aircraft and associated systems. However, according to The Nation, it also includes a defence offset and technology transfer package valued at more than 100 billion baht — far exceeding the aircraft cost.
The Royal Thai Air Force has outlined that the offset arrangement consists of seven direct offsets related to defence and seven indirect offsets aimed at broader economic development. As reported by FW Magazine, the direct offsets include:
- Establishment of a Saab research and development office in Thailand
- Transfer of intellectual property rights for the Link-T tactical data link
- Local capability to develop Link-T
- Aircraft upgrade development capacity
- Inclusion of Thai firms in the Gripen E/F supply chain
- Building national maintenance capabilities within the Royal Thai Air Force
- Enhanced maintenance capacity at Wing 1
The indirect offsets, also reported by FW Magazine, target civilian sectors and include:
- Swedish foreign direct investment in Thailand
- Creation of an innovation centre
- Promotion of agricultural technology development
- Support for education and vocational skills training
- Funding for educational and research cooperation
- English-language training with the British Council
According to FlightGlobal, the package will also see upgrades to Thailand’s two Saab 340B Erieye airborne early warning and control aircraft, and the establishment of a Gripen maintenance, repair and overhaul hub in the country. Thai companies are expected to produce components such as tyres, bearings, clamps and airframe parts for the Gripen E/F supply chain.
