March 21/13: Need a fix. Saab announces a 5-year, SEK 1.1 billion ($170 million) contract that runs from 2013-2017, and covers “a comprehensive set of spares and support services for a previously delivered system, Saab 2000 AEW&C (Airborne Early Warning & Control).” Unfortunately, “The industry’s nature is such that depending on circumstances concerning the product and customer, information regarding the customer will not be announced.”
The answer seemed obvious. Air forces using Saab turboprop AWACS include Sweden, Thailand and the UAE (Saab 340), and Pakistan and Saudi Arabia (stretched Saab 2000 variant). Pakistan’s sale is well known and hasn’t been secret, so a Saab 2000 AEW&C customer insisting on secrecy must mean… Saudi Arabia.
Except that we might have been wrong. What even the February revelations in Pakistan hadn’t disclosed is that the attack on Minhas AB in Pakistan happened
with 3 Erieye planes on the ground. One was destroyed – but 2 others were very badly damaged. That leaves Pakistan with a fleet of just 1 plane, until it gets those 2 fixed. That could explain this $170 million contract, with the sudden secrecy invoked because Pakistan doesn’t want to publicly admit the extent of the loss; indeed, if Saab doesn’t announce a separate SEK 1+ billion support contract soon, the default assumption for this deal must become Pakistan.
The problem for Sweden, says Sweden’s Dagens Industri in an April 10/13 article, is that the original purchase was funded by a 2006 credit arrangement of SEK 7.4 billion from the Swedish Export Credit and Export Credits Guarantee Board. Now they’ll have to add SEK 1+ billion to cover this, all to a country that isn’t viewed as a terrific credit risk. Our Swedish source says that Dagen Industri is about to break a follow-on story involving “questionable commissions” related to the sale. No, we’re not shocked, either. But Sweden has laws that will be enforced, even if Pakistan’s aren’t.
Saab Group |
Dagens Industri [in Swedish].
Aerial Eyes: Pakistan’s New AWACS Fleets