Saab Aims for Fighter Jet Deals in Colombia and Peru
Swedish defense company Saab has submitted a proposal for the sale of Gripen fighter jets to Colombia and is also pursuing a potential agreement with Peru, CEO Micael Johansson announced. Although the number of aircraft suggested for sale to Colombia has not been disclosed, the CEO expressed optimism about the proposal, acknowledging the competitive nature of the market.
This news follows a report from a Swedish public radio station last week stating that Colombia is preparing to purchase a fleet of JAS Gripen jets. These jets are produced by Saab at a manufacturing line located in Brazil. Regarding the offer to Colombia, Johansson stated, "We have made them a comprehensive proposal. They are evaluating it, and we are now awaiting their response."
In a related development, over the weekend Brazil agreed to increase its current order of 36 JAS 39 Gripen fighter jets by 25%. This expansion is part of a bilateral arrangement that also includes Sweden's decision to incorporate Brazilian manufacturer Embraer’s C-390 military cargo aircraft into its fleet. The letter of intent for this agreement was signed on Saturday by Swedish Defense Minister Pal Jonson and his Brazilian counterpart Jose Mucio, although the final contract is still pending.
According to Johansson, this agreement is seen as "extremely good news" for Saab, and it is expected to facilitate the assembly of more Gripen aircraft at Embraer's facility in Gaviao Peixoto, Sao Paulo. This facility, which opened a joint production line last year, aims to become a central hub for the production and export of Gripen fighter jets in Latin America.
Johansson emphasized the strategic advantage of the Brazilian production center, particularly for potential sales to Colombia and Peru. He noted that the sales campaign in Colombia is at a more advanced stage, with proposals already submitted. Meanwhile, he mentioned there are public statements indicating that Peru has been identified as an important market and that a budget has been allocated to initiate purchasing processes.
On Monday, Saab's shares rose about 4% on the Stockholm market, reflecting investors' reactions to the company's ongoing negotiations and potential expansion in South America.