US ambassador meets with Sutin on proposed F-16 deal

SATURDAY, JUNE 29, 2024

Air Force says it is proceeding with military aircraft selection process with an eye on costs

US Ambassador to Thailand Robert Godec on Friday met with Defence Minister Sutin Klungsang to provide additional information on a military-assistance project regarding the proposed sale of F-16 Block 70 fighter jet by Lockheed Martin to the Royal Thai Air Force. 

The meeting at the Defence Ministry followed a prior communication to Prime Minister Srettha Thavisin, though the contents of that letter have not been disclosed.

It is believed that the discussion on Friday involved offers of additional support beyond the standard military aid programmes for purchasing arms, including countertrade information with Thailand. 

US ambassador meets with Sutin on proposed F-16 deal

During the meeting, Godec also extended an invitation for Sutin to visit the United States.

Air Chief Marshal Panpakdee Patanakul, commander of the Royal Thai Air Force, who was on an official visit to the Chinese air force, said he was unaware of the US ambassador’s letter to the prime minister. 

He confirmed that the Air Force is proceeding with the selection process to ensure cost-effectiveness in all aspects, aligning with economic offset policies, and is considering additional proposals.

However, during the Shangri-La Dialogue in Singapore at the end of May, US Secretary of Defence Lloyd Austin held a bilateral discussion with Sutin and presented a proposal under the Foreign Military Financing (FMF) programme. 

This programme provides financial assistance and loans to allied governments for military-equipment purchases and US training programmes.

US ambassador meets with Sutin on proposed F-16 deal

Despite budget constraints, there is said to be a need to enhance Thailand’s military capabilities. The US has offered a discounted price for the F-16 Block 70, with a long-term repayment plan of nine years and an interest rate of less than 5%, which is lower than the standard terms and longer than typical purchase agreements. This favourable arrangement is reserved for close allies.

Reports indicate that the draft 2025 budget bill includes details of four projects with an initial budget commitment of about 3.5 billion baht, one of which involves purchasing four replacement fighter aircraft (Phase 1). However, the budget document does not specify the projects. 

These proposals will be reviewed by a special parliamentary committee in July before being voted on in the second and third readings.

Meanwhile, two aircraft manufacturers, SAAB of Sweden (producer of the Gripen E series) and Lockheed Martin, which have garnered interest from the Royal Thai Air Force, are urgently submitting additional proposals to secure the final selection.

The review committee, led by Air Chief Marshal Seksan Kantha, Chief of Staff of the Air Force, had planned to announce which aircraft models received the highest rankings, but this announcement has been postponed pending documentation from the companies. The final selection will be made by the model selection committee.

On June 24, Marcus Wallenberg, chairman of the SAAB SEB Group, met with Srettha at Government House. The prime minister said various topics were discussed, including the Gripen aircraft. 

He noted that he plans to travel to Davos, Switzerland, again next year and may organise a small forum between Thailand and Sweden to explore potential technological collaboration between companies of both countries. 

Additionally, he remarked that if Thailand were to purchase the F-16s from the US, there would be a requirement for development within Thailand as part of a reciprocal arrangement.