FLUG REVUE February 2005: Gripen starts exports with Czech deal

February 2005

SAAB GRIPEN EXPORTS START

By Karl Schwarz

The procurement of new fighter aircraft could hardly be quicker. Only 11 months after signing a leasing agreement, the Czech Air Force is set to take delivery of its first six JAS 39C Gripens in April. The remaining eight, including two two-seaters, are expected by August. To make it possible, the Swedish armaments agency, Forsvarets Materielverk (FMV), which was a signatory to the agreement, assigned the “highest priority” to the “ambitious programme”.

Saab JAS 39 Gripen

This fast reaction is of course only possible because the Swedes have been able to simply divert some aircraft from ongoing production for the Swedish Air Force. As a result of the drastic economy measures confirmed in mid-December by the parliament in Stockholm, the Flygvapnet no longer needs anything like all the 204 Gripens (including 28 two-seaters) on order and therefore has a vital interest in finding alternative homes for the at least 40 aircraft which are now surplus to requirements. Under these portents, the first JAS 39C bound for the Czech Republic took off on its maiden flight in Linköping as early as 18 October 2004, only four months after signing of the contract.

At that time, the first two Czech pilots had already completed a month of training with the Flygvapnet's F 7 Squadron in Satenäs. After qualification for high g loads in the centrifuge, induction training in emergency procedures, around 20 missions on the simulator and five flights in the two-seater JAS 39B, Wing Commanders Michael Boruvka and Peter Mikulenka flew their first solo flights in the JAS 39A on 26 October. Conversion training to the C version with its more modern cockpit (large colour displays instead of monochrome screens) is set to follow over the next few weeks.

Following in Boruvka's and Mikulenka's footsteps, six other pilots started their training in November. Altogether some two dozen pilots are to be converted to the Gripen, although the Czechs are finding it difficult to retain suitable candidates with the appropriate experience in the armed forces. Apparently the pay in the airlines is two to three times better.

Some 40 technicians have also been training with the Swedish Air Force in Halmstad since September 2004. The aim is that they should complete their training by March. In any case, the Czechs will be able to count on Swedish support even after their return to their home base in Caslav. Around ten technicians are to be temporarily assigned by Saab under the terms of the support agreement.

The leasing contract, which runs for ten years to 30 September 2015, provides for 21,000 flying hours and sets guarantees with regard to operational ready rates. The fixed price of 19,650 billion Czech korun (Euro645.13 million), which is to be paid in ten annual instalments, does not of course include either fuel or weapon systems. Initially these are to be confined to Sidewinders and possibly the AIM 120 AMRAAM; however, procurement of this has not yet been finalised.

Although the only costs at issue for the moment are the costs of leasing the Gripens, the Czechs have obtained generous compensation, which no doubt tipped the balance in favour of the Swedish tender. 130 percent of the costs are to be covered by industrial offsets through to the year 2014; of this, 20% will come from orders for the country's aerospace and defence industry.

As mentioned above, the Czechs are getting the latest, C version of the Gripen. This has a retractable refuelling probe near the left air intake, onboard oxygen generation system (OBOGS) and NATO-standard radio equipment. All the inscriptions are in English, and a number of standard weapons can be used. Minor software adjustments, for example to the map displays, should be certificated by March.

In getting the programme through so quickly, the Czechs have managed to be the first of the new NATO partners to re-equip to a western high-performance jet. One factor here was the urgent need for a replacement for the MiG-21. Meanwhile, the first JAS 39C's earmarked for Hungary are already in production in Linköping. The official rollout is scheduled for 25 January. Hungary had concluded a leasing contract for 14 Gripens (including two two-seaters) back in December 2001, but then changed the specification, so that they too are to receive the new C and D models.

The first five Hungarian pilots will commence conversion training in Satenäs in January, followed by the ground support teams, whose six-month course is due to start in April in Halmstad. The Hungarian fighter controllers will similarly attend a course starting in September. Deliveries of the Gripen are planned to run from March 2006 to December 2007. They will be stationed in Kecskemét, where they will probably be assigned to the 1st Fighter Squadron (Puma).

Kecskemét is at present Hungary's only remaining fighter base. Over the last few years it has been modernised and adapted to NATO standards, at great expense. The remaining 14 MiG-29's, whose service life was extended with Russian assistance, are still flying there and, according to current plans, they are to remain in service until 2009.

Hungary was planning to equip its Gripens with an array of air-to-air and air-to-ground weapons, but lack of money is evidently making the procurement difficult. Thus, out of an American package comprising AIM-9M Sidewinders, GBU laser bomb kits, AGM-65H/K Mavericks and AIM-10C5 AMRAAMs, only the 40 AMRAAMs, worth $25.39 million (Euro19 million) were actually ordered in December. The next step planned is to issue an open an invitation to tender, which could lead, for example, to the purchase of second-hand Sidewinders from Sweden or Germany. For the Hungarian pilots, who are accustomed to a helmet-mounted sight on the MiG-29 and the agile R-73E (AA-11 Archer), this would be a step backwards.

Whereas the Czech Republic and Hungary are getting their Gripens from the Flygvapnet's quota of 204 aircraft, the JAS 39's bound for South Africa are brand new aircraft that will bring the total number of aircraft ordered up to 232. The contract signed in December 1999 provides for the delivery of nine two-seaters and 19 single-seaters (optional), which are to be stationed at Makhado Air Base in the north of the country. According to the latest plans, the Swedes are to begin constructing a fully instrumented two-seater in January 2005, which will then go to South Africa for flight testing in 2006. Deliveries to the South African Air Force (SAAF) are to commence in 2008. Including the single-seaters, they should be complete by 2012.

It goes without saying that the Gripen marketing team are not yet satisfied with the successes achieved today. “We see the opportunity to deliver over 200 Gripens world-wide over the next ten years,” said outgoing marketing director Bob Kemp confidently at a presentation for FLUG REVUE. Especially as a replacement for old MiGs or for the F-5, the Gripen is optimal, he argues. It is also in a good position as regards the ever higher requirements for industrial offsets and flexible financing.

The next opportunity for a Gripen sale is Thailand, whose Chief of Staff, Air Force, Air Chief Marshall Kongsak Wantara, surprisingly announced in an interview on 8 October 2004 that they had selected the Gripen to replace the F-5 fleet. The requirement here is for up to 20 aircraft. Discussions regarding the details of a possible order have since begun, but Saab is not taking anything for granted yet. Apparently it could take a year to wrap things up contractually.

Another hot candidate for the Gripen is Bulgaria, which wants to replace its MiG-29 fleet, possibly starting in 2007. On 23 September 2004, the defence ministry in Sofia signed a Memorandum of Understanding with Gripen International and BAE Systems Information and Electronic Systems, which is aimed at exploring the opportunities for modernising the Bulgarian armed forces. Meanwhile, marketing is being conducted in Slovakia and, of late, in Switzerland as well. Finally, the Gripen is also a contender in Brazil, although a purchase there seems to have been put back by several years. Informal discussions have also been held with India and Pakistan.

Since 1995 export marketing for the Gripen has been conducted jointly by SAAB and BAE Systems, which set up a 50:50 joint venture company, Gripen International, for this purpose in September 2001. Having benefited from the experience of the British, evidently the Swedes now feel strong enough to stand more on their own feet. Hence, as of 1 January 2005, Saab took over “responsibility for canvassing for new export orders for the Gripen”. According to the official announcement from Saab at the beginning of December, BAE Systems will retain “joint responsibility for activities in the established export markets and may co-operate on future exports if required.” At the same time, BAE is to reduce its stake in Saab from the present 35 percent to just over 20 percent.

From page 42 of FLUG REVUE 2/2005

Last updated 10 January 2005

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