F-16 vs Gripen: US cuts rates by 30% to stay in competition after Thailand’s reported preference for the Swedish fighter

The United States offered to reduce interest rates for the purchase of F-16 Block 70 fighter jets by the Royal Thai Air Force (RTAF), in the hope that Bangkok will not go for the Swedish Gripen E/F.

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As reported by news portal Bangkok Post, the offer came after the RTAF revealed last week that it is considering buying the Gripen jets instead of the F-16s, citing the outcome of a study by the procurement committee that found the Swedish fighter was best suited to replace 12 aging F-16 A/Bs in the air force’s fleet in the coming years.

RTAF commander ACM Punpakdee Pattanakul sent the results of the comparative study to Defense Minister Sutin Klungsang for further deliberation last week, along with his recommendation to opt for the Swedish solution.

See also: Thailand leans towards the Swedish Gripen: does the US F-16 still have a chance?

However, shortly after the RTAF’s predilection for the Gripen came to public light, Washington immediately decided to improve its bid by offering to lower the interest rates for the purchase of the F-16 Block 70/72 aircrafts from 5% to 3.5% «with an extended payback period,» a source close to the deal told the Bangkok Post.

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«Let’s see what offer Saab [the Gripen aircraft manufacturer] comes up with to compete with the U.S.,» added the source.

Thailand’s defense minister, at the invitation of his US counterpart, will soon visit America to discuss the possible acquisition of Lockheed Martin F-16 Block 70s, among other issues.

The Thai government will not make its final decision in the short term, allowing both the U.S. and Sweden to submit better deals to win the contract.