Saab CEO optimistic Ukraine Gripen deal could be finalized this year

MILAN — Saab is rapidly exploring ways to expand its Gripen production rates, with a major deal for up to 150 aircraft with Ukraine potentially being finalized this year, according to company head Micael Johansson — though Sweden’s top defense official said challenges remain.

In an interview with Swedish public broadcaster SVT last week, Johansson stated that while an agreement to deliver a significant number of Gripen fighter jets to Kyiv typically takes a few months, he hopes it will be completed this year.

In October, Ukrainian President Volodymyr Zelenskyy visited the Saab hub in Linköping, Sweden. During his trip, he signed a long-term letter of intent with the Swedish government to deepen air defense cooperation, which could include the export of 100 to 150 Gripen E jets.

This week, another top Ukrainian official, Defense Minister Mykhailo Fedorov, travelled to Sweden and said today that Kyiv was “ready,” after having developed its “own plan on how to finance this project.” He did not disclose details.

However, at the same press conference, Swedish Defense Minister Pål Jonson suggested financing was still an issue to be resolved, as well as challenges when it comes to training and production capacity.

Mattias Rådström, head of media relations for Saab, told Breaking Defense that while the company defers timetable questions to Swedish authorities, it remains committed to collaborating with its Ukrainian partners to “achieve a successful outcome.”

The Swedish MoD had not responded to a request for comment at press time.

“We’re exploring a number of options to expand Gripen production capacity as global demand grows — Saab, together with its partners, will be ready to deliver based on customers’ needs defined by the contract,” Rådström said in an email statement. 

Aeronautics currently represent approximately SEK 82.2 billion ($8.9 billion) of Saab’s overall order backlog, which stands at SEK 274 billion ($29.8 billion). The company’s CFO, Anna Wijkander, shared these figures during the Q1 results presentation on April 23.

During the performance update, Johansson further said that Saab is working toward a production rate of 20 to 30 aircraft per year and that, based on current and future orders, attaining the 20-unit milestone annually would be achievable in roughly one year.

While a second assembly plant is operational in Brazil, Saab representatives have also previously proposed setting up an additional facility in Canada to serve export orders, as Ottawa weighs sticking with a planned F-35 fighter jet buy or potentially operating a mixed fleet with Gripen aircraft.

Jonas Olsson contributed reporting from Stockholm.