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Saab receives FMV order to extend Gripen lease in the Czech Republic

Defence and security company Saab has received an order from the Swedish Defence Materiel Administration (FMV) for the extended lease of Gripen from Sweden to the Czech Republic. This agreement provides for the continuing support and upgrade of the Czech aircraft for a further 12 years. The order is valued at approx. SEK 576 million.

Gripen has been in service with the Czech Republic since 2005. In May 2014 a new agreement between Sweden and the Czech Republic extended this partnership for a further 12 years. As a result, the Czech Republic will continue to operate 14 Gripen C/D aircraft until at least 2027. Under the terms of this government-to-government agreement Saab acts as a supplier to FMV, which in turn provides the aircraft to the Czech Republic.

“The Czech Republic’s decision is further evidence of Gripen's high capability and great cost-efficiency. It proves again how well the aircraft stands up in global competition. As we develop the next generation of Gripen for Sweden and Brazil, we continue to see great international interest in Gripen C/D”, says Lennart Sindahl, Deputy CEO and Head of Saab’s business area Aeronautics.

The new agreement includes hardware modification of the aircraft and upgrade of system functionality that will deliver a continuing increase in capabilities for the customer. Also included are several years of support for the Czech aircraft by FMV. Work to develop and adapt new mission software for Czech requirements begins immediately. Aircraft modifications will be implemented in about one year’s time.

“Our relations with the Czech Air Force are excellent and the feedback from Czech Gripen pilots has always been exceptional. We are looking forward to our continuing fruitful cooperation ", says Tobias Wennberg, Head of Saab Central and Eastern Europe.

Gripen provides air defence for five nations: Sweden, South Africa, Hungary, Thailand and the Czech Republic. In October 2014 Saab signed a contract with the Brazilian government for the development and production of 36 Gripen NG for the Brazilian Air Force. The UK’s Empire Test Pilots’ School (ETPS) relies on Gripen in its training programme for future test pilots and engineers.

For further information, please contact:

Saab Press Centre, +46 (0)734 180 018,

Saab serves the global market with world-leading products, services and solutions ranging from military defence to civil security. Saab has operations and employees on all continents and constantly develops, adopts and improves new technology to meet customers’ changing needs.

The information is that which Saab AB is required to declare by the Securities Business Act and/or the Financial instruments Trading Act. The information was submitted for publication on 11 December 2014 at 08.30 (CET).