Bangkok Post – US ‘offers lower prices’ for F-16 purchase

Government awaits Saab counter-offer

The United States has offered to lower interest rates on the Royal Thai Air Force’s purchase of F-16 fighter jets in a bid to get the Thai government to choose the American-made fighter jets over Sweden’s Gripen fighter jets, a defense ministry source said Monday.

The offer came after the RTAF revealed last week that it was considering buying the Gripen jets over the F-16s, citing the outcome of an Air Force Procurement Committee study which concluded that the Gripen E/F was the best fit for the air force’s needs.

RTAF Commander ACM Punpakdee Pattanakul forwarded the study results to Defense Minister Sutin Klungsang for further deliberation last week.

The source said the RTAF commander announced the report’s conclusion to the press last week “to prevent any political interference that could change the final decision.”

However, shortly after learning of the government’s preference for Gripen aircraft, the US immediately offered to reduce interest rates for the purchase of F-16 Block 70/72 aircraft from 5% to 3.5% “with an extended repayment period,” the source said, without providing further details on the repayment terms.

“Let’s see what offer Saab (which makes Gripen aircraft) will come up with to compete with the US,” the source said.

Mr. Sutin is expected to visit the United States soon, during which further discussions on the F-16 deal will take place, the source added.

“For now, he is yet to review the RTAF study and advise the prime minister on what type of aircraft the government should purchase. The final decision, however, is not expected to be different (from the RTAF study),” the source said.

The government will not make a final decision in the near future, the source said, on whether it will allow the United States and Sweden to compete for the deal.

The source said the ACM Punpakdee will participate in the 2024 Royal Military Air Tattoo and the Farnborough International Airshow in England.