Hungary and Sweden Sign Modified Gripen Contract

The Hungarian Minister of Defence arrived in the Swedish capital on Monday, January 30 in the early morning hours, where Swedish Defence Minister Sten Tolgfors received him with military honors. After the reception Csaba Hende and his Swedish counterpart, issued a joint decree to reiterate that building on the excellent experience gained in previous years, the two countries intend to continue cooperation in the fields of economy, politics and the military, considering each other as long-term strategic partners. In the two Minister’s presence, Dr. Gyula Keszthelyi, the Director-General of the MoD Armament and Quartermaster Office and Ulf Hammarström, the Director-General of the Swedish Defence and Security Export Agency ratified the modified Gripen contract by signing the document.

The modification of the Gripen lease agreement has a dual aim. On the one hand, it guarantees the protection of Hungary’s airspace, while on the other – due to the extended duration and the more favorable terms of the contract – it reduces budget expenditures arising from the lease of the Gripen and from providing logistic support and training programs. Apart from the ten-year extension, the Swedish partners will operate until 2026 the ground servicing equipment of the aircraft, which is a much more economical solution than if Hungary had to develop the relevant infrastructure. The modification of the contract can save a significant net amount of around HUF 49 billion. With a 45 per cent increase in the total costs calculated up to 2026, the number of Hungary’s flying hours will increase by 95 per cent, and the modified agreement now includes training programs as well. The documents of the contract are classified, so the concrete figures cannot be made public.

After the several-month expert discussions ended in last December, on January 4, 2012 the Hungarian government gave its authorization to sign the modified contract. Following the Cabinet’s approval, Defence Minister Csaba Hende informed the MPs and the representatives of the media at a six-party meeting in Parliament about the details of the modification. The Swedish government gave its approval on January 19, 2012.

The JAS 39 EBS HU Gripen aircraft in operation with the Hungarian Defence Forces meet the highest technological and tactical standards of our age, being one of the world’s most modern fourth-generation fighters available on the market. As a result of the talks, the Gripens can provide the indispensable fighter capability that is needed to protect the sovereignty of Hungary’s airspace.