Why the Czech gov selected Gripen fighters over F-16. [Official statement]

PRAGUE, Dec 18 (Reuters) - The Czech Republic chose a Swedish offer of
Gripen combat jets over U.S.-made fighters mainly on technical merits,
senior defense ministry officials said on Thursday.

The cabinet voted late on Wednesday to accept an offer to lease 14 new
JAS 39 Gripens, made by Saab and Britain's BAE Systems for 10 years to
replace its ageing Soviet fleet of MiG-21 fighters beginning in 2005.

The U.S., the Netherlands and Belgium had offered used F-16s
manufactured by Lockheed Martin (nyse: LMT - news - people), while a
fifth bid was made by Canada to supply used U.S.-made F-18s in one of
the most intense diplomatic dogfights Prague has seen.

"The technical parameters and the complexity of the Swedish offer,
from a technical and logistical point of view, fully offset the
difference in price for new jets as opposed to used jets," said Robert
Novotny, the head of a defence commission that evaluated the bids
before recommending the Gripen.

Defence Minister Miroslav Kostelka added that the 10-year agreement
would cost the Czechs, who are trying to solidify their credentials in
the NATO security alliance after joining in 1999, about 21 billion
crowns ($806 million).

Swedish officials in Prague said in a statement the decision
"confirmed that the Gripen is, for the Czech Republic, the most
advantageous choice from an economic and operational standpoint, as
well as in fulfilling the Army's needs".

Novotny said the price had a roughly 60 percent weighting in the
decision process, with technical factors accounting for the rest.

The bids, price-wise, were relatively the same, Novotny said.

While Novotny's commission had placed the Gripen offer at the top of
the list -- Belgium's offer of used F-16s was second -- the
announcement was nonetheless a surprise.

The government was not bound to follow the commission's recommendation
and many in the cabinet were said to have favoured U.S.-made aircraft
to help further the fledgling NATO member's relations with Washington.

U.S. officials had also launched a diplomatic offensive in Prague in
the run-up to the decision, warning that Czech-American relations
could be at risk over the tender.

With 10 of 19 NATO members flying F-16s, the choice of the Gripen is
also the second coup for the plane manufacturer in the region after
Hungary opted last year to lease 14 Gripens for 10 years. ($1=26.05
Czech crown)

Copyright 2003, Reuters News Service