US “offering lower rates” for F-16 deal

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In: South-East Asia

Govt waiting for Saab’s counteroffer

Discussed: 16 Jul 2024 at 05: 47

US 'offering lower rates' for F-16 deal
An F-16 plane of the air pressure in Nakhon Ratchasima state. ( File photo: Royal Thai Air Force )

According to a cause in the Defence Ministry on Monday, the United States has made an offer to reduce the interest charges for the Royal Thai Air Force’s order of F-16 fighter jets in an effort to persuade the Thai government to prefer the American-made fighters to Sweden’s Gripen fighter aircraft.

The RTAF made the offer after last week revealing that it is considering purchasing the Gripen jets over the F-16s, according to a study conducted by the heat agency’s procurement committee, which concluded that the Gripen E/F was best suited for the air force’s requirements.

ACM Punpakdee Pattanakul, the captain of the RTAF, sent the study’s findings to defense secretary Sutin Klungsang last week for further analysis.

The RTAF chief said last week that the report’s conclusion was made available to the press to “prevent political interference that could change the final choice.”

However, immediately after learning of the government’s desire for the Gripen jets, the US instantly offered to reduce the interest rates for the purchasing of the F-16 Block 70/72 jets from 5 % to 3.5 %” with an extended payment period”, said the source, without providing more information about the repayment term.

” Let’s see what offer Saab]who manufactures the Gripen jets ] comes up with to compete with the US”, said the source.

Mr. Sutin is scheduled to travel to the US rapidly, during which time additional discussions about the F-16 package will be held, according to the source.

He has not yet been able to evaluate the RTAF review and recommend a suitable aircraft for the government. The final decision, however, is expected to be no different]to the RTAF’s study ]”, said the source.

The source claimed that the government wo n’t be making a final decision until after this deal is reached, allowing both the US and Sweden to compete for this.

ACM Punpakdee does go the Farnborough International Airshow in England and the Royal Military Air Tattoo in 2024, according to the source.