The US’s reluctance to part with technology associated with its fighter jets, such as the F-16 Block 70/72 (Viper) or even the F-35 Lightning II, might have impacted their export (s).
The Royal Thai Air Force (RTAF) officially announced its decision to buy a dozen Saab Gripen-E fighter jets over the American Lockheed Martin F-16 Block 70/72 aircraft on June 4. The Gripen E/F models will replace the service’s older F-16 A/B jets, which were purchased in the 1980s.
For Saab, Thailand’s decision marks the end of a ten-year dry spell in aircraft exports and has set in motion a domino effect, with multiple countries now exploring the purchase of the aircraft to upgrade their fleets.
On the contrary, it comes as a setback for the American aerospace giant, which has defeated the Saab Gripen-E with its F-35 stealth fighter in multiple fighter jet contracts over the past decade.
The Saab Gripen-E outperformed the American F-16 Block 70/72 by offering technological and financial advantages that made its offer far more appealing and beneficial to Thailand.
While submitting its final offer in August last year, Saab had promised Thailand that “The Swedish proposal will ensure the best return on investment for Thailand that will exceed the contract value through a well-structured, long-term plan that covers key areas of critical technologies and national capabilities for Thailand.”
Technology Transfer Is The Way Forward
The large scope of the Swedish deal, particularly the technology transfer, bore fruit.
As highlighted by the Defense News report, Sweden’s proposal heavily relied on Thailand’s distinctive Link-T data link, produced by Saab, which is currently only found aboard a few Thai warships and a few Thai aircraft. Promoting the Gripen-E, Saab offered Thailand the intellectual property rights for the unfettered usage and growth of Link-T.
“The RTAF and local defense industry will receive Link-T development capabilities from Saab,” the RTAF said in a statement.
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In contrast, the US maintained strict control over its data linkages, making the Lockheed offer significantly less enticing when compared to the Saab offer.
Furthermore, Saab provides Thai businesses with the opportunity to produce tires, bearings, clamps, and airframe parts as part of the Gripen supply chain. Thus, reducing reliance and long-term life-cycle costs.
Saab offered Thailand an extensive offset offer that likely proved too good to ignore. It stated, “In addition to Gripen E/F fighter aircraft and associated equipment, Saab’s offer includes a long-term offset package. This will benefit the national security and strategic independence of Thailand, while also bringing new jobs and investments to a range of Thai society sectors.”
Saab’s offset package, which amounts to around 155% of the project’s value, has proven particularly alluring to a country eager to expand its aerospace sector and achieve self-sufficiency. Unlike the F-16 Viper, the Gripen-E would benefit Thailand’s economy, create jobs, and provide autonomy, in addition to bolstering its air power.
Pleased by the offer, the RTAF said, “The offset committee conducted negotiations with Saab concerning the defense offset proposal to maximize benefits and comply with the policies of the government and the minister of defense.”
Unlike the Swedish Gripen, the US does not offer full technology transfer for the F-16 Viper, as this would involve sharing highly sensitive and classified technologies, which are restricted under US export control laws, particularly the International Traffic in Arms Regulations (ITAR).
For the US, the rationale behind withholding is based on the need to protect critical systems from reverse engineering or proliferation risks, ensuring that the US and its allies maintain a technological edge, particularly against adversaries such as China or Russia.
The US does provide limited technology transfer tailored to the needs of partner countries, which is often balanced with strategic interests and security concerns.
Lockheed Martin offered Thailand a substantial technology transfer package as part of its F-16 Viper pitch, focusing on datalink upgrades, maintenance training, university partnerships, an R&D centre, and supply chain integration. While these efforts aimed to enhance Thailand’s aerospace capabilities and economic growth, they were limited by US export restrictions.
For instance, Lockheed offered Thailand technical assistance to integrate Link 16 secure datalink systems and Mode 5 Identification, Friend or Foe (IFF) technology into its existing F-16A/B fleet. However, it did not grant the RTAF unfettered use of the datalink, limiting its use and chipping away at Bangkok’s autonomy in operation.
It is also pertinent to note that fighter jets such as the F-35 and F-16 Viper often come with higher acquisition and lifecycle costs compared to competitors like the Gripen. The reluctance to transfer maintenance and sustainment technologies increases reliance on US-based supply chains and support, ultimately leading to higher long-term costs.
For budget-constrained nations like Thailand, alternatives like the Gripen, with lower operating costs and localized maintenance capabilities, become more appealing.
The decision made by the Thai government also reflects a shift, with less affluent countries now prioritising acquisitions that also fuel their economy.
Sweden & Russia Lead The Way
Several countries, particularly in Asia and the Middle East, are now pursuing a hedging strategy to avoid over-reliance on a single manufacturer. The restrictions on technology transfer imposed by the US are now prompting nations to seek diversified partnerships.
Two countries, Sweden and Russia, appear to be capitalizing on this to promote their aircraft in the export market, as demonstrated by their offers for technology transfers to India.
Both Russian state exporter Rosoboronexport and Swedish defense contractor SAAB have pitched their respective aircraft to India amid reports that the South Asian country is looking to accelerate the Multi-Role Fighter Aircraft (MRFA) program to acquire 114 new fighter jets.
SAAB, for one, has been pitching the Gripen-E to India for years. It renewed its pitch in August last year in a post on X: “Saab will offer 114 state-of-the-art Gripen E fighters as a part of its response to the upcoming IAF RFP. With Gripen E, India will get next-generation combat air capability and world-class availability – ready to face any threat, anytime, anywhere, from any dispersed location.”
Later in the year, Kent-Ake Molin, Head of the Gripen for India, disclosed that the company was already looking into manufacturing prospects in India to fully transfer technology to the country, thus appealing to IAF’s aspirations for indigenous fighter production.
The IAF wants to acquire the MRFA under the ‘Make in India’ policy, where the aircraft will be licensed-produced in India, bolstering the country’s local industries and allowing the IAF to upgrade and modify the aircraft locally without any impediments.
Saab is providing India with exactly what it seeks.
“We foresee that we can set up full-scale production in India, which will include everything, not just the airframe, but also systems and software. We have a plan to rapidly indigenise the platform. We have had favorable discussions with a host of private partners who will support us in our indigenization efforts,” the company has stated.
Similarly, Russia has offered added benefits while promoting the Su-57 to New Delhi. Earlier this year, Rosoboronexport offered a “golden deal” to the Indian Air Force (IAF).
Alexander Mikheev, Director General of Rosoboronexport, proposed “the all-round development of cooperation on the Su-57E project. Among our proposals is the supply of ready-made aircraft, the organization of their joint production in India, as well as assistance in the development of an Indian fifth-generation fighter.”
In addition, Rosoboronexport stated that if India finalizes the deal, Indian companies that manufacture the Russian Su-30MKI fighter jets can soon begin producing the fifth-generation Su-57E fighter.
Thus, the Russian offer to India is almost too good to be true, with local production of Su-57E, modernization of Su-30MKI, and assistance with India’s own fifth-generation Advanced Medium Combat Aircraft (AMCA) program on the table.
For a country like India, which has made concerted efforts at boosting local manufacturing and self-sufficiency, both these offers could be in the reckoning.
Notably, the US has also offered the Lockheed F-35 stealth aircraft to India. However, as previously explained by the EurAsian Times, the lack of technology transfer and local manufacturing makes it a lot less appealing.
Both Sweden and Russia have made similar offers to other prospective buyers. For instance, SAAB has already transferred technology to Brazil (the sole foreign operator of Gripen-E) and has offered the same to another South American country, Colombia, which announced its decision to buy the aircraft in April 2025.
Saab CEO Micael Johansson told AirForces Monthly in 2023: “We have done a fantastic job transferring technology to Brazil. To get the development center and production capabilities set up at Gavião Peixoto, where we even have a structures component factory. It means we could fulfill more technology transfers to the likes of Colombia. It can be supported from Brazil and would benefit the whole continent.”
Similarly, Russia has been promoting the Su-57 with an offer for ‘joint production,’ particularly in the Middle East, and now, in Latin America.
Rosoboronexport CEO Alexander Mikheyev told TASS at the Dubai Airshow 2023 that Russia was in talks with its partners on both the deliveries of Su-57 fifth-generation fighters and the prospects of cooperation in the aircraft’s joint production. As per previous reports, an offer to co-produce the Su-57 in the UAE was made to the Emirati kingdom.
Although the Russian Su-57 has yet to make a breakthrough in the export market due to various factors, the deal appears promising.
The Su-57 can attract buyers who want a fifth-generation stealth fighter but are unlikely to secure one from the US due to the country’s stringent export controls and reluctance to share technology.
Meanwhile, SAAB could give Lockheed F-16V a run for its money by making deals that the American manufacturer is not allowed to commit to.
If the example of Thailand is anything to go by, it appears that technology transfer may be the way forward.
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