(CTN News) – The Air Force says it is progressing with the military aircraft selection process with an eye to costs.
US Ambassador to Thailand Robert Godec met with Defence Minister Sutin Klungsang on Friday to present more details on a military assistance project involving Lockheed Martin’s proposed delivery of F-16 Block 70 fighter jets to the Royal Thai Air Force.
The meeting at the Defence Ministry followed a previous communication to Prime Minister Srettha Thavisin, the contents of which have not been disclosed.
It is understood that the talks on Friday included promises of further assistance outside the regular military aid programs for purchasing armaments, such as countertrade information with Thailand.
Godec extended Sutin an invitation to visit the United States during the encounter.
Air Chief Marshal Panpakdee Patanakul, commander of the Royal Thai Air Force, who was in China for an official visit, claimed he was ignorant of the letter from the US ambassador to the prime minister.
He affirmed that the Air Force is moving forward with the selection process to ensure cost-effectiveness in all aspects, in line with economic offset policies, and is reviewing new ideas.
During the Shangri-La Dialogue in Singapore at the end of May, US Secretary of Defense Lloyd Austin met with Sutin and proposed a proposal under the Foreign Military Financing (FMF) program.
This program offers financial aid and loans to ally nations for military equipment purchases and US training programs.
US Ambassador’s Involvement in F-16 Block 70 Deal
Despite funding limits, there is a perceived need to strengthen Thailand’s military capabilities. The United States has provided discounted pricing for the F-16 Block 70, with a nine-year payback plan and an interest rate of less than 5%, lower than ordinary periods and longer than typical purchase agreements. This beneficial arrangement is limited to close allies.
According to reports, the draft 2025 budget law includes information for four projects with an initial budget commitment of around 3.5 billion baht, one of which involves the purchase of four replacement fighter aircraft (Phase 1). However, the budget paper does not define the projects.
A special parliamentary committee will study these measures in July before they are voted on in the second and third readings.
Meanwhile, two aircraft manufacturers, SAAB of Sweden (maker of the Gripen E series) and Lockheed Martin, have piqued the Royal Thai Air Force’s attention and are rushing to submit more proposals to secure the ultimate selection.
The review committee, led by Air Chief Marshal Seksan Kantha, Chief of Staff of the Air Force, intended to declare which aircraft types achieved the top rankings, but this announcement has been postponed for documentation from the industry. The model selection committee will make the final decision.
On June 24, Marcus Wallenberg, the SAAB SEB Group chairman, met with Srettha at Government House. The prime minister stated that several matters, including the Gripen aircraft, were covered.
He stated that he intends to return to Davos, Switzerland, next year and may organize a small roundtable between Thailand and Sweden to examine potential technology partnership between their enterprises.
Furthermore, he stated that if Thailand purchases the F-16s from the United States, there would be a demand for development within Thailand as part of a reciprocal agreement.
