With Thailand’s defence procurement process heating up, Lockheed Martin‘s industrial participation proposals for the F-16 fighter jet challenge Saab‘s Gripen offering, highlighting the importance of economic value in military contracts.
In a competitive environment, Lockheed Martin has unveiled an industrial participation proposal for its F-16 Block 70/72, aimed at winning Thailand’s future fighter jet programme. While the defence player emphasises local economic benefits and training initiatives, rival Saab presents its Gripen fighter jet as a contender.
Lockheed’s announcement highlights a commitment to economic growth in Thailand, with initiatives designed to enhance local capabilities across sectors. The proposed establishment of a Research and Development Center and aerospace engineering training for the Royal Thai Air Force reveals Lockheed’s strategy to integrate into the Thai industrial landscape.
According to GlobalData’s “The Global Military Fixed Wing Aircraft Market 2023-2033” report, Lockheed Martin Corp. will be the second leading supplier of military fixed-wing aircraft in Asia-Pacific; it is set to hold a 15.2% share of the market.
Aimee Burnett, vice president of business development for Integrated Fighter Group, emphasised the company’s history and existing partnerships with the Thai military, “Lockheed Martin values our 40-year partnership and history with Thailand and the Royal Thai Air Force, and we are confident the F-16 Block 70/72 will complement its existing F-16 fleet”.
The Thai Ministry of Defence seeks to collaborate with foreign partners to establish military-industrial facilities in the country. For example, Swedish company Saab entered into a joint venture with Thailand-based Avia Satcom and established Avia Saab Technologies to develop high-tech products in aviation and defence.
According to GlobalData’s intelligence on the Thailand defence market, the Thai Air Force has the JAS 39C/D and the Saab 340 AEW/B in its fleet and also has various variants of the F-16 aircraft from Lockheed Martin.
In February, Saab strengthened its partnership with Hungary by securing a contract for four additional Gripen C fighter aircraft.
Saab has been actively courting the Thai government, showcasing the Gripen’s track record in Southeast Asia. This challenges Lockheed’s narrative, as Saab aims to convince Thailand that their aircraft can deliver performance and value.
The competition between these two aerospace players places Thailand in a pivotal position. The Thai government seeks a partner to foster sustainable economic growth and technological advancement.
Both Lockheed Martin and Saab must navigate the technical specifications of their aircraft and the web of economic considerations associated with military purchases.
With the procurement process underway, the Thai government is expected to weigh the aircraft’s immediate capabilities and the long-term benefits to its defence industrial base. As Lockheed positions the F-16 Block 70/72 as a proven option, Saab’s Gripen emphasises its adaptability.
