Offsets could be the clincher in Thai fighter competition

An immediate priority for the Royal Thai Air Force (RTAF) is a requirement for 12–14 new fighters to replace ageing F-16A/Bs, and two competitors are swinging their last punches as the final bell approaches.

The two jockeying contenders are Lockheed Martin’s F-16 Block 70/72 and Saab’s Gripen E, and the air force has already applied for approximately US$530 million for a first batch of four fighters.

Significantly, the RTAF has just recommended that the Gripen E be selected, with a source close to the air force telling Shephard: “In the first step of the comparison, the RTAF gave the Gripen a win over the F-16.”

Related Articles

Thailand steps up modernisation efforts with AT-6 Wolverine order

US declines Thai F-35 fighter request, offers F-15 and F-16

Singapore Airshow 2024: Saab's Gripen E sets sights on fighter procurement breakthroughs

This, however, is not the end of the matter. While the RTAF commander, ACM Phanphakdee Phattanakul, forwarded relevant data to the defence minister and prime minister on around 9 July, the source explained that “before announcing who is the winner, currently the offset policy is being considered to see whose policy will be more beneficial to Thailand”.

Both companies are recommending offset packages for government consideration, however, the source noted: “It’s expected that it will take a long time to consider.”

Aimee Burnett, VP, business development, Integrated Fighter Group at Lockheed Martin, told Shephard: “We’d be honoured, of course, to continue supporting Thailand’s defence and economic goals through the world’s most advanced fourth-generation fighter.”

In fact, demonstrating the type’s enduring popularity, Lockheed Martin announced that it has just delivered its 4,600th F-16.

While Thai F-16 Block 70/72s are being offered via the US government’s Foreign Military Sales programme, Burnett explained that it is Lockheed Martin’s in-country team working with Bangkok to put together the offset package.

“We really think we can create something that will meet Thailand’s goals and directly benefit the people of Thailand,” she pointed out.

Burnett said one element in Lockheed Martin’s proposal is creation of a research and development centre “that would advance Thailand’s capabilities across a number of different sectors, that includes aerospace manufacturing, and advanced aerospace engineering training for industry partners in Thailand and the RTAF.”

Other offset possibilities are advanced maintenance training for the RTAF, workforce development projects, and technical assistance for an advanced data link upgrade to ensure interoperability within the RTAF’s fleet.

Moving on to Saab’s entrant, the RTAF has intimate familiarity with this platform too, after ordering its first Gripen C/D fighters in 2008; these were latterly upgraded to MS20 configuration under a January 2021 contract.

Robert Björklund, head of Gripen Thailand, Saab, told Shephard earlier this year: “The RTAF Gripen fleet remains highly reliable, highly versatile and brings a very wide range of weapon options, including its highly effective RBS15 anti-ship missile.”

Björklund further noted that Thai Gripens are fully integrated into the Saab-supplied Link-T national data link system. Indeed, Saab highlighted how the Gripen gives Thailand a high degree of autonomy, since Sweden does not represent traditional Eastern or Western blocs.

Saab said it had “submitted a complete future airpower solution based on the Gripen E/F advanced multirole fighter. This proposal meets all the operational requirements of the RTAF and delivers a number of unique capabilities that cannot be acquired elsewhere”.

The Swedish company asserted its offer meets all aspects of the offset policy.

“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,” it said. 

More distantly, Thailand has a second fighter replacement project for 12–14 aircraft slated for FY2031-2035, this time replacing F-5E/Fs of 211 Squadron at Ubon. Thirdly, an identical number of fighters are needed to succeed F-16A/Bs of 403 Squadron at Takhli from FY2037–46.

In one final update on the RTAF, the force held a welcome ceremony for its first two Beechcraft AT-6TH Wolverine light attack aircraft on 16 July. This took place at 411 Squadron, Wing 41 at Chang Mai Airport. Thai Aviation Industries (TAI) had commenced their final reassembly in May.

Thailand procured eight Wolverines under a $143 million contract in 2021, to replace Czech-built L-39ZA/ART Albatros aircraft retired that same year. The RTAF says the AT-6THs will provide close air support, search for illegal entrants and drug smugglers along the border, support disaster relief and forest fire suppression.

These aircraft have a tactical data link and they can transmit video from their Wescam MX-15Di camera in real time. The first cohort of Thai pilots received training by Textron in Wichita, Kansas from February-May this year.

Related Programmes in Defence Insight

F-16 Replacement (5-12) [Thailand]

Related Equipment in Defence Insight

JAS 39E/F Gripen

F-16V Block 70/72