Czech Republic assesses new Swedish Gripen fighter lease extension offer

A Saab JAS-39C Gripen flies at Airpower 24 on September 7, 2024 in Zeltweg, Austria. (Mario Skraban/Getty Images)

BELFAST — The Czech Republic has started to evaluate a newly delivered Gripen C/D fighter jet lease extension offer from Sweden that includes aircraft maintenance and pilot training from 2027 to 2035.

The lease extension has been deemed necessary by Prague to facilitate a transition to Lockheed Martin F-35 fifth generation fighter jets, the first of which is due for delivery in 2031. The existing Gripen lease lapses in 2027.

The Czech Republic Ministry of Defense (MoD) said in a translated Tuesday statement that Gripen lease extension negotiations with Stockholm had “advanced” and the new offer is being “evaluat[ed] in cooperation with the Czech Army.”

Until the F-35s are received, the “preferred option from the beginning” was to operate Gripen jets, and thereby “continue to preserve the Czech Republic’s ability to ensure the protection of its airspace,” added the MoD.

Lease discussions had proven difficult and not to the liking of the Czech side but eventually a breakthrough was secured.

“Because the first offers did not meet our expectations, we asked the Swedish partners for a new proposal,” Lubor Koudelka, senior director of armaments and acquisitions at the Czech MoD noted, according to the statement.

“After demanding negotiations, we have now arrived at a variant that is significantly more advantageous for the Czech Republic. Compared to the original offer, we negotiated a discount of approximately 25 percent.”

The new offer, valued at 16.65 billion CZK ($732 million), will enable Prague to continue to operate 12 Gripen aircraft out to 2035 — two less than its existing fleet of 14 units — split between 10 single seat and two, two-seat platforms.

“Significant financial savings” will also be accrued as part of the proposed deal, “compared to the Swedish offers in the last almost two years,” added the Czech MoD.

Maintenance and training between 2027 and 2035 are the central elements of the new offer with the cost of leasing “not constituting a significant part,” though higher maintenance costs are anticipated because the single engine combat jets are close to 30 years in service.

“At the same time, over the past 20 years, labor market prices and material prices have increased significantly in the military aviation sector,” said the Czech MoD. “The contract under preparation thus responds to the development of prices in recent years, which has significantly exceeded the long-term average.”

In parallel with the leasing arrangements, modernization of the Gripen fleet is planned “in response to the current battlefield situation,” with aircraft upgrades or improvements set at a cost of 3.9 billion CZK. Spending of 2 billion CZK has already been allocated for 2015-2027 modernization activities.

Should the Czech MoD, in collaboration with the Czech Army, accept the offer, it will share a “draft contract” with the government, which could lead to signature “by the end of the current government’s term,” around October 2025.

The Czech Republic originally agreed a 10-year Gripen lease contract worth 19.65 billion CZK in 2004 to replace Soviet-era MiG-21 fighter jets, subsequently extending the lease out to 2027.

The aircraft are based at Caslav Air Base and are leased by the Swedish Defence Materiel Administration (FMV), in partnership with manufacturer Saab.

FMV did not respond to a request for comment by the time of publication.