Southeast Asia: Sweden announced on Monday that it has signed a landmark agreement to supply Thailand with four next-generation Gripen fighter jets, marking the first tranche of a broader plan that could eventually see the Royal Thai Air Force (RTAF) operate a full squadron of the advanced Swedish-made warplanes.
The deal, valued at 5.3 billion Swedish crowns (approximately $556 million), was jointly unveiled by Sweden’s Defence Materiel Administration (FMV) and aerospace giant Saab. Deliveries are scheduled between 2025 and 2030, with Saab supplying three single-seat Gripen E aircraft and one two-seat Gripen F trainer variant, alongside associated equipment, training, and long-term maintenance support.
For Thailand, the acquisition signals both an upgrade to its air defense capability and a strategic alignment with Western aerospace technologies at a time of growing regional tensions and great-power competition. For Sweden, it underscores the enduring appeal of its fighter export program and bolsters the Gripen’s credibility on the global market.
FMV Director-General Mikael Granholm emphasized the deal’s significance for Sweden’s defense industry.
“This strengthens the long-term development opportunities for Swedish warplanes,” Granholm said in a statement, noting that the Gripen program remains a cornerstone of Sweden’s defense exports.
Saab, which has worked extensively with Thailand since the country first acquired Gripen C/D fighters over a decade ago, said the contract demonstrated “mutual trust and strategic alignment.” Saab’s shares rose by 3% in late morning trading on Monday, reflecting investor confidence in the Gripen’s export potential amid heightened demand for modern fighter aircraft worldwide.
Thailand currently operates one squadron of Gripen C/D fighters at Wing 7 in Surat Thani, which has become the backbone of its southern air defense network. The new Gripen E/F aircraft will join this fleet, but with significantly enhanced capabilities, including advanced radar systems, extended range, superior avionics, and compatibility with new-generation precision-guided munitions.
Thai Foreign Minister Maris Sangiampongsa described the acquisition as a “new fang” for national defense, underscoring the symbolic and practical value of the Gripen purchase.
“This agreement not only strengthens the Air Force’s fangs but also represents a milestone in advancing Thailand’s defense industry under the government’s policy,” Maris told reporters in Bangkok.
The Gripen procurement is part of a broader plan to replace Thailand’s aging fleet of Lockheed Martin F-16A/B fighters, which have been in service for over 37 years and are increasingly difficult to maintain. The current agreement covers the first four aircraft, but the Royal Thai Air Force has outlined plans to acquire a total of 12 Gripen E/F fighters, forming one complete squadron.
Deliveries will begin in 2029, with two aircraft per year until the squadron is complete. Saab and FMV have also signaled that future deliveries could include broader industrial participation, including joint research projects and technology transfer initiatives.
Maris stressed that the deal aligns with Thailand’s long-term strategy to foster a domestic defense industry.
“Our goal is for the government to facilitate, while businesses and entrepreneurs in the defense industry take the lead in absorbing technology transfers, enhancing national defense capability,” he said.
Thailand has been gradually positioning itself as a regional defense hub, with successive governments encouraging partnerships that would allow local firms to benefit from high-tech collaboration. Saab has already trained Thai engineers, technicians, and pilots through its existing Gripen C/D program, and the new agreement is expected to expand opportunities in avionics integration, maintenance, and systems upgrades.
Maris also highlighted that both former prime minister Srettha Thavisin and current Prime Minister Paetongtarn Shinawatra have backed the procurement program, providing rare continuity in Thai defense policy despite frequent political changes.
“I have spoken with the RTAF commander and understand that the Air Force has skilled personnel and clear policies to position Thailand as a leading country in this sector,” Maris added.
Thailand’s choice of the Gripen E/F over other Western and Russian aircraft reflects a combination of affordability, versatility, and political alignment.
Unlike the U.S.-made F-35, which was considered but rejected due to high costs, political hurdles, and concerns over sensitive technology restrictions, the Gripen offers advanced combat capability at a lower price point.
Saab has marketed the Gripen as a “swing-role fighter,” equally capable of air-to-air combat, ground attack, and reconnaissance missions. Its electronic warfare systems and sensor fusion technology allow it to punch above its weight compared to heavier fighters like the Eurofighter Typhoon or the Rafale.
Crucially, the Gripen’s relatively low operational costs—estimated at roughly half that of an F-35—make it more sustainable for mid-sized air forces such as Thailand’s.
The timing of the Thai-Swedish deal is significant. Southeast Asia has become a focal point of strategic competition between the United States and China, with maritime disputes in the South China Sea, arms modernization by Vietnam and Indonesia, and growing Chinese military assertiveness.
Thailand, a long-standing U.S. treaty ally but increasingly reliant on Chinese investment, has sought to balance its defense procurement strategy. In recent years, the RTAF evaluated Chinese fighters such as the J-10C, but ultimately chose the Swedish option, signaling Bangkok’s preference to maintain interoperability with Western partners.
Defense analysts note that the Gripen’s arrival will enhance Thailand’s deterrence posture, especially when combined with the country’s existing fleet of Saab 340 AEW&C airborne early warning aircraft. This integrated network allows the Gripen to maximize its capabilities, giving the RTAF a robust air defense system relative to regional peers.
The Gripen deal also carries weight in Thailand’s domestic politics. Prime Minister Paetongtarn Shinawatra’s government has been keen to demonstrate both economic pragmatism and security foresight. By pursuing a phased procurement strategy—starting with four jets before scaling up to a full squadron—the government has framed the deal as fiscally responsible while delivering tangible national security benefits.
Critics, however, argue that the price tag remains steep at a time when Thailand faces economic headwinds, particularly in tourism recovery and export competitiveness. Opposition lawmakers have called for greater transparency in how offset and industrial participation agreements will benefit Thai companies.
Nonetheless, the deal has broad bipartisan support given Thailand’s urgent need to modernize its air force and the symbolism of replacing four-decade-old fighters with state-of-the-art aircraft.
For Saab, the Thai contract represents another win in its ongoing export campaign for the Gripen E/F. The aircraft is already in service with the Swedish Air Force and Brazil, while India and several NATO countries have been courted as potential customers.
The Thai deal reinforces the perception that Saab has carved out a niche in the global fighter market—offering an affordable yet cutting-edge alternative to U.S. and European rivals. Saab executives have repeatedly emphasized that the Gripen’s modular design allows it to adapt quickly to customer requirements, a feature particularly attractive to nations seeking sovereignty in defense planning.
The company’s share price bump following the announcement illustrates investor confidence that more Gripen orders could follow, both from Thailand and other emerging defense markets.
While the first deliveries under the new deal will not occur until 2029, preparations are already underway within the Royal Thai Air Force. Training programs for pilots and ground crew are expected to expand in Sweden, and discussions are ongoing about upgrading infrastructure at RTAF bases to accommodate the new aircraft.
By the early 2030s, Thailand is projected to operate two distinct Gripen squadrons, integrating both C/D and E/F variants. This mixed fleet will require careful logistical coordination but will also provide the Air Force with layered capabilities suitable for a broad spectrum of missions.
Observers believe that Thailand’s long-term ambition could go beyond a single squadron. Should the economic and political environment remain stable, Bangkok could consider procuring additional Gripens or expanding its indigenous aerospace projects through partnerships with Saab and other Western firms.
