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Saab AB: Can the Gripen NG fighter be an exporting success?

  • May 2014
  • 24 pages
  • MarketLine
Report ID: 2188854

Summary

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Introduction

Saab AB’s Gripen fighter has seen extensions with its contract for the Swedish Defense Materiel Administration (FMV) extended and upgrades from C/D models to E, extending to 2026. The next generation of Gripens is also performing well elsewhere, managing to secure a $4.5bn order from the Brazilian air force’s FX-2 program, beating Boeing and Dassault Aviation.

Features and benefits

* Analysis of the combat aircraft market, including a shift in trends and how manufacturers have had to respond.
* Evaluation of Saab's recent performances, and how its main product, the Gripen fighter, could compete against larger manufacturers.
* Analysis of the combat aircraft exporting market, and the problems The Gripen could face in the short and medium term future.

Highlights

The market structure sees many sellers pitted against single buyers. There is some differentiation between models available in cost, technology, and lifespan. Changes in threats have also shifted emphasis s to versatile, cost effective models. The market is further complicated by geopolitical considerations and declining demand.
Saab is active in the combat aircraft market through its JAS-39 Gripen line. The Gripen is significant to the company, with its aeronautics division accounting for 27% of sales in 2013. The new variant of the Gripen is designed for cost effectiveness and awareness, rather than unsurpassed aeronautical capabilities.
Exporting competition is fierce, and the Gripen has yet to compete against Lockheed Martin's F-35 in contract bidding. The F-35 already has several strategic partners in the form of the largest defense spenders globally, although support for the project is wavering as costs continue to grow.

Your key questions answered

* What are the main trends in the combat aircraft market?
* How well has Saab performed recently?
* How will Saab's new Gripen fighter appeal to governments?

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