Defence Minister Sutin Klungsang confirmed on Thursday that the US ambassador had briefed him on a loan proposal to allow the air force to acquire more F-16 fighter jets, but the offer came with a high interest rate.
Mr Sutin said Robert Godec proposed that a loan would allow the air force to buy a fleet of F-16s instead of four to five planes at a time, but he found that the offered interest rate was “quite high”.
The air force is preparing to start replacing 12 ageing F-16s in its fleet and has been looking to order either new F-16s or SAAB Gripen fighter jets from Sweden.
Mr Sutin said it was unconventional for Thailand to borrow money to buy fighter jets. The conventional method was to pay using the national budget, he said.
The talks with the ambassador last Thursday did not cover the possibility of a discount or barter trade, he said, adding that the latter would be difficult in a fighter jet procurement.
He said the ambassador told him that the F-16s could be integrated into the data link system of the air force, and that Washington was ready to transfer the maintenance technology that the air force demanded.
“They said their jets are superior to other jets in terms of advancements and capacity, and are the most suitable choice at present,” Mr Sutin said.
The air force is reportedly seeking 19 billion baht for the 2025 fiscal year starting on Oct 1 to buy four new fighter jets to start replacing a dozen old F-16s that are due to be decommissioned in the near future.
Prime Minister Srettha Thavisin said earlier that the US ambassador had sent him a written proposal, but that many points needed to be discussed — including his requirement for reciprocal and equal US investment in Thailand.
The prime minister met last month with Marcus Wallenberg, the president of Saab AB, who briefed him on Sweden’s proposal to sell as many as 12 Gripen fighter jets.
Sources said earlier the Swedish manufacturer’s offer was said to include grants for military training and maintenance, as well as replacing radar systems in its Saab 340 early warning aircraft.
The basic list price of an F-16 is $63 million, compared with $85 million for the Gripen. That does not include expenses related to development, maintenance and other associated costs.