Amid China's rise, Asean eyes replacing ageing fighter jets | Bangkok Post: news

SINGAPORE/KUALA LUMPUR -- With an eye on China's more muscular stance in the South China Sea, Southeast Asian governments are stepping up efforts to replace ageing fighter aircraft fleets, paving the way for multibillion-dollar deals in a boon for warplane makers.

Despite tight budgets across the region, sales executives say they are busier than ever after a five-year lull -- and both industry and government sources say the next months could see several multibillion-dollar deals from Malaysia to Vietnam.

A trade conference held in Kuala Lumpur this week thronged with would-be buyers and salesmen from Russian, French, British, Chinese, Pakistani and American firms. Held every other year, attendees reported it was busier than ever.

A prime drawcard was one of the region's biggest prizes: Malaysia, which is set to finally replace its Russian 1990s-era MiG-29 fighters after several years of delays. Industry sources say Kuala Lumpur could buy up to 18 jets, a deal potentially worth more than US$2.5 billion.
Options include the Saab Gripen, the Eurofighter Typhoon, Russian Sukhoi Su-30, and the Sino-Pakistani JF-17. France is optimistic about winning an order for Dassault-built Rafales but other bidders are also hopeful.

Thailand, which has Northrop F-5s and Lockheed Martin F-16s, has bought the Gripen and could order more from the Swedes, say industry sources familiar with the negotiations.
"We do want new jets, we have long-term plans, but we don't have the money for it," Maj Gen Kongcheep Tantrawanit, a defence ministry spokesman, said. "There are no deals in the making right now."

Vietnam, eyeing options beyond traditional supplier Russia, is among those next on the buyers list. It has had preliminary talks with Saab and France's Dassault to purchase at least 12 fighter jets, industry sources and a separate source familiar with the government talks said.
"They seem to be keen on moving away from Russia, but it has been dormant so far," said Kaj Rosender, regional director for Gripen exports at Saab. "It looks like the next call will be on Vietnam."

Industry sources say Vietnam is also in talks with Moscow over several Su-35s. Officials at Rosoboronexport, Russia's arms export agency, declined to comment on any negotiations.
Vietnamese officials rarely comment on procurement matters, and did not respond to Reuters' requests for comment.

Newer Post Older Post