GABOR SZEKERES / BUDAPEST
Saab-BAE Systems fighter beats F-16 in race to replace country's ageing Soviet-era fleet of MiG-29s
Hungary has selected the Saab-BAE Systems Gripen as an interim solution to the replacement of its ageing Soviet-era fighters.
The country will lease 14 Gripens for 12 years at a cost of around 130-140 billion forints ($500 million), including weapons. The Gripen was competing against used Lockheed Martin F-16s offered by Belgium, Turkey and the USA.
Defence minister János Szabó says the decision was made for economic rather than military reasons. "This was the best offer," he says. Although the lease is a government-to-government deal, Saab-BAE is providing 100% industrial offset, 30% of it direct. The US offer was for a smaller amount of offset.
The government has authorised ministries to begin negotiations after which the deal will need to be approved by parliament.
Selection of Gripen came as a surprise, with all the indications before the announcement that the F-16 was the preferred choice. Prime minister Viktor Orbán said recently that the only question was the choice between Belgian, Turkish and US F-16 offers.
Industry observers in Budapest suggest the selection was a political decision by the ruling Fidsez party ahead of forthcoming general elections. The opposition MSZP has welcomed the selection, but adds that it is still not known how the deal will be funded. MSZP also says that, in the absence of a Hungarian military doctrine and reform of the armed forces, the introduction of new fighters is pointless. The funding problem forced a cut in fighter numbers from 36 to 14.
As well as committing to the Gripen lease, Hungary will also extend the life of 14 RSK MiG-29 Fulcrums to provide a stopgap until the new fighters become operational in the next two to four years.
Hungary will hold talks with the Russian manufacturer only, despite last year announcing a deal with the EADS/RSK joint-venture MiG Aircraft Product Support.
The overhaul will be performed in Hungary at a cost of around 5 billion forints and take up to a year. A limited MiG-29 upgrade to NATO standards would have cost 20 billion forints.
A lack of spares has grounded the MiG-29 fleet for a month from 30 August. The fighters will only be operated on alert duties.
Hungary's decision is the first among NATO's three newest members, all of which have fighter acquisition plans. Gripen is the only remaining competitor in the Czech Republic, while Poland is expected to postpone the outcome of its deliberations until after the forthcoming elections.
Source: Flight International
