The US government has offered Thailand sweetened financing terms for the potential acquisition of Lockheed Martin F-16 Block 70/72 fighters following news that the Saab Gripen E/F is the Royal Thai Air Force’s (RTAF’s) preferred aircraft.
The USA has offered to cut the interest rate on a loan for the fighters to 3.5% from 5%, and extended the repayment period, according to an RTAF source quoted by the Bangkok Times.
The report follows news last week that the RTAF had selected the Gripen E/F over the American type, and passed its recommendation along to the Thai government, which will make the final decision.
The source also told the Bangkok Post that defence minister Sutin Klungsang has yet to review the RTAF’s proposal to obtain the Gripen E/F. In addition, Sutin is set to visit the USA “soon”, where more discussions about the F-16 will be held.
Separately, Lockheed announced an offset programme for Thailand should the country obtain the F-16.
Projects include a research and development centre to work in areas such as manufacturing and agriculture. The package also includes training for Thai aerospace engineers, technical assistance with a datalink, and fighter maintenance training.
“Lockheed Martin brings decades of experience delivering value to local industries and workforces, including a successful history of executed offset projects with Thai industry partners and the Royal Thai Air Force,” says Aimee Burnett, vice-president business development at the company’s Integrated Fighter Group.
FlightGlobal understands that Saab has also put forward an offset programme, incorporating both direct and indirect offsets.
