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Brazil’s Gripen contract becomes effective

A Saab Gripen.Saab’s multibillion dollar contract with Brazil for the supply of 36 Gripen NG fighter jets has become effective, just under a year after the company announced it had finalised the contract with the Brazilian government.

Saab yesterday announced that contract has now come into effect as all required conditions have been fulfilled. Today, the order value of approximately SEK39.3 billion ($5.4 billion) is booked by Saab as order intake. Gripen NG deliveries to the Brazilian Air Force will be undertaken from 2019 to 2024.

The associated industrial co-operation contract (including technology transfer to Brazilian industries), which was signed in October 2014, also came into effect yesterday.

“Through the Gripen NG programme, we continue to build on the industrial relations between Brazil and Sweden. I am confident that this important programme will serve as a platform for new business and contribute to the growth of both the Brazilian and Swedish industry,” said Marcus Wallenberg, Chairman of Saab’s Board of Directors.

“This important milestone marks the formal start to the Brazilian Gripen NG programme. We will now work full speed ahead to ensure timely deliveries of Gripen NG to Brazil. Our partnership with Brazilian industry strengthens Saab’s position in Latin America and supports our strategy for growth through industrial co-operation,” said Håkan Buskhe, President and CEO of Saab.

Brazilian engineers and technicians will come to Saab for education and on-the job-training in Sweden starting in October 2015.

“The acquisition of Gripen NG will provide benefits beyond the enlargement of the Brazilian Air Force’s operational capacity. In addition to equipping FAB with one of the world's most modern fighters, the participation in the development of Gripen NG means a technological breakthrough for Brazilian industry,” said Lieutenant-Brigadier Nivaldo Luiz Rossato, Commander of the Brazilian Air Force.

Saab on 18 December 2013 won a long bidding war for the delivery of new fighter jets for the Brazilian air force against France's Dassault Aviation and Chicago-based Boeing. Brazil selected the Gripen NG to be its next-generation fighter aircraft, through the F-X2 evaluation programme. The programme comprises 28 single-seat and eight two-seat Gripen NG.

Brazil joins Sweden in becoming the launch customer for the next-generation Gripen. Gripen aircraft are currently in operational service with the Swedish, Czech, Hungarian, South African and Royal Thai Air Forces, and also with the UK Empire Test Pilots’ School (ETPS).

The Gripen E/F (Gripen Next Generation – NG) features things like AESA (Active Electronically Scanned Array) radar, IRST (Infrared Search and Track) sensor and the ability to supercruise. It also carriers a wide variety of weapons, has a more powerful engine with increased fuel capacity and greatly improved avionics.

The Swedish air force is planning to take delivery of 60 Gripen Es from 2019. The first aircraft is due to be rolled out during 2016. Saab estimates there is the potential to sell between 300 and 450 new generation Gripens.

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