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Canada Reviews Fighter Jet Deal Amid Global Gripen Sales

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Canada Reviews Fighter Jet Deal Amid Global Gripen Sales
Key Points
  • Canada is reviewing its F-35 purchase, potentially switching to Sweden's Gripen.
  • Saab faces setbacks in Peru and security risks from Thailand's exercises with China.
  • Global Gripen sales include Thailand and potential deals with Ukraine.

Canada is planning to purchase new fighter jets, with two alternatives being the American F-35 and the Swedish JAS 39 Gripen, according to official sources. In 2022, Canada chose the American F-35 over the Swedish Gripen, but the Canadian government has now initiated a review of the deal which could end with the country choosing to invest in a European fighter jet, according to major media reports. There have been earlier signals that Canada does not want to complete the order for 88 American F-35 planes, and Canada is now considering changing course and buying all or some of the planes from Sweden instead, according to major media reports. Canada wants to acquire 88 new fighter jets to replace the fleet of CF-18 Hornets purchased from the USA in the 1980s, according to major media reports. Saab's CEO traveled to Canada at the end of March hoping to sell the Gripen, according to official sources, and Saab is offering to build a data center in Montreal if Canada decides to buy the JAS 39 Gripen, according to major media reports.

Swedish lobbying efforts in Canada have included an online influence campaign, with hundreds of videos published on YouTube portraying the Gripen as outperforming the American F-35 and suggesting Canada has more or less already shaken hands with Sweden, according to official sources. The origins of this YouTube campaign remain unclear.

In Peru, Saab is being snubbed on a multi-billion dollar deal regarding the sale of the Gripen fighter jet, with Peru instead on track to choose the American F-16 fighter jet manufactured by Lockheed Martin, according to official sources. The total purchase involves 24 fighter jets, a deal in the multi-billion class, according to official sources. Peru is buying American F-16 planes, according to the defense news site Defensa, and Peru has evaluated eight suppliers of fighter jets since 2012, according to major media reports. Saab's press department said there is no official information that Peru has made a decision to choose another supplier of fighter aircraft, and they are convinced Gripen would be the best and most cost-effective option for Peru. The official status of Peru's fighter jet procurement process and when a final decision will be announced remain unknown.

Thailand has moved forward with Gripen purchases, with an agreement for the sale of Gripen jets to Thailand signed on August 25 last year by the Thai Air Force chief and the Director General of the Swedish Defence Materiel Administration (FMV), according to major media reports. The deal is estimated to be worth 5.3 billion kronor, according to major media reports, and the new aircraft will be delivered in batches until 2030 and will eventually replace Thailand's older model F-16 planes, according to major media reports.

We have taken note of the media reports about Peru's choice of fighter aircraft. There is no official information that we have taken part in that Peru would have made a decision to choose another supplier of fighter aircraft.

Saab's press department, Corporate press department

Security concerns have emerged regarding technology transfer through Thailand's use of Gripen jets in exercises with China. The Swedish Defence Research Agency (FOI) presented a report in January 2024 warning of the risk that knowledge about the Swedish fighter jets could leak to China, and in extension to Russia, according to major media reports. Thailand already uses the Swedish aircraft in the annual Falcon Strike air exercise together with China, according to major media reports, and during the exercises, China's air force gets the opportunity to test its planes against the Swedish JAS 39 Gripen, according to major media reports. China's advanced Y-9LG aircraft, designed to neutralize opponents' sensors and command systems through electronic warfare, also participates, according to major media reports, and the next joint air exercise between China and Thailand is planned for May this year, according to major media reports. What specific measures, if any, are being taken to prevent technology transfer of Gripen systems to China and Russia through Thailand's use remains unknown.

Globally, Sweden has approximately 100 Gripens in operation, according to major media reports, and the Gripen has previously been exported to countries including Brazil, South Africa, Thailand, and in lease arrangements to the Czech Republic and Hungary, according to major media reports.

Ukraine represents a significant potential market, with the largest potential deal currently being with Ukraine, which has signed a letter of intent for 150 Gripen planes, according to major media reports. How Ukraine will pay for the 150 Gripen planes it has expressed intent to purchase is unknown.

Financial aspects of Canada's options include the cost for the planes said to amount to the equivalent of 190 billion kronor, according to major media reports, and Saab's Gripen came in second place after the F-35 in the evaluation, according to major media reports.

We are naturally following the process further and we are convinced that Gripen would be the best and most cost-effective fighter aircraft for Peru.

Saab's press department, Corporate press department

Contextually, Canada's aging fleet of CF-18 Hornets, purchased from the USA in the 1980s, underscores the urgency for replacement, as noted in major media reports.

Reactions and implications of a potential Canadian policy reversal include signals that Canada does not want to complete the order for 88 American F-35 planes, according to major media reports, and Canada is now considering changing course and buying all or some of the planes from Sweden instead, according to major media reports. The Canadian government has initiated a review of the deal which could end with the country choosing to invest in a European fighter jet, according to major media reports. Whether Canada will actually change its decision from F-35 to Gripen, and if so, how many planes will be purchased, remains unknown.

Unknowns persist regarding Peru's procurement, as the official status of Peru's fighter jet procurement process and when a final decision will be announced are not confirmed.

Further unknowns involve technology protection and campaign origins, with questions about who is behind the hundreds of YouTube videos promoting Gripen over F-35 in Canada and what specific measures are being taken to prevent technology transfer to China and Russia through Thailand's exercises.

Finally, unknowns surround Canada's final decision and Ukraine's financing, as it is unclear whether Canada will switch to Gripen and how Ukraine will fund its intended purchase.

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Canada Reviews Fighter Jet Deal Amid Global Gripen Sales | Reed News