Lockheed Martin’s hopes for re-energising its F-16 Block 70/72 offering for Thailand’s fighter contest appear to rest on improving the interoperability of Thailand’s existing F-16 Block 15 fleet.

The US airframer is on the backfoot following a Royal Thai Air Force (RTAF) Facebook post indicating that it had down-selected the Saab Gripen E/F for the 12-aircraft requirement.

Royal Thai Air Force F-16

Source: Royal Thai Air Force

Could upgrades for Thailand’s older F-16s lure the RTAF away from the Gripen?

The 27 August post stated: “Most suitable to protect our national interest”, above an image of the Swedish-built fighter.

The selection, which still needs approval from Thailand’s government, followed competitive bids from both companies, which included offset packages to support Thailand’s aerospace and defence sector.

The RTAF has experience with both fighters, operating 11 earlier-model Gripen C/Ds and 50 Legacy F-16A/Bs.

A source familiar with the situation tells FlightGlobal that Lockheed’s revised offering is pinned on upgrading 18 legacy F-16 Block 15s with new communications, datalinks, and identification friend or foe systems that will allow them to fully benefit from the sensor suite found on the Block 70/72.

The F-16 Block 15s in question are viable for the new equipment because they have undergone a mid-life upgrade programme, which included a pair of colour multi-function displays and other improvements. 

Under Lockheed’s proposal, the newer model F-16 Block 70/72s would be able to fully share sensor data, particularly from the fighter’s active electronically scanned array radar, says the source. 

In addition, the Block 15s would be better able to pass data back to a Block 70/72.

Given the sensitivity of the hardware involved, some elements of the upgrade work would fall under a Foreign Military Sales case with the US government.

Moreover, local companies – namely Thai Aerospace Industries – would be involved in the upgrade project should it take place.

Lockheed is also pitching a university partnership that would lead to a research and development centre, helping Thailand improve its human capital for the aerospace sector.

Offsets appear to be a major driver for Bangkok’s decision. In Mid-August, the deadline to accept offers was extended on the basis of assessing updated offers that confer additional benefits to the country.

Saab also has put forward an offset porgramme, incorporating both direct and indirect offsets.