The U.S. State Department has approved a potential Foreign Military Sale (FMS) of 24 F-16 fighter aircraft to Peru, even as Lima reportedly leans toward acquiring Sweden’s Saab Gripen E for its next-generation air combat capability. The approval underscores Washington’s intent to remain competitive in Latin American defense markets and reflects broader geopolitical dynamics shaping regional military modernization.
DSCA Notification Details the Proposed F-16 Package
On September 6, 2025, the U.S. Defense Security Cooperation Agency (DSCA) formally notified Congress of a possible sale of up to 24 F-16s—comprising both Block 70 and Block 72 variants—to the Government of Peru. The estimated value of the package is $3.9 billion and includes:
- 19 single-seat F-16C Block 70/72 aircraft
- 5 two-seat F-16D Block 70/72 aircraft
- General Electric F110 engines (including spares)
- AN/APG-83 AESA radars
- Advanced targeting pods (Sniper or equivalent)
- Electronic warfare/self-protection systems
- Tactical datalinks (likely Link-16)
- Ammunition and guided munitions (unspecified types)
- Pilot training and logistics support
The DSCA emphasized that the proposed sale supports U.S. foreign policy and national security objectives by enhancing the air capabilities of a key regional partner. However, it also noted that Congressional approval does not guarantee contract finalization.
Peru’s Fighter Replacement Program: Gripen E as Front-runner
The Peruvian Air Force (Fuerza Aérea del Perú – FAP) has been actively seeking a replacement for its aging fleet of Soviet-era MiG-29s and French Mirage 2000s. In July 2025, multiple reports indicated that Lima had selected Sweden’s Saab Gripen E as its preferred platform following evaluations that considered cost-efficiency, industrial offsets, operational sustainability in high-altitude environments like the Andes, and technology transfer opportunities.
The Gripen proposal reportedly includes local assembly options via cooperation with Peruvian aerospace firm SEMAN Perú S.A., along with training packages and long-term maintenance support. Saab has previously succeeded with similar offset-heavy deals in Brazil and Hungary.
However, no formal contract has yet been signed between Peru and Saab as of September 2025—leaving room for competing offers such as Lockheed Martin’s F-16 package to remain viable alternatives.
Strategic Implications for Regional Fighter Jet Competition
The U.S. decision to greenlight an FMS case despite Lima’s apparent preference for the Gripen highlights intensifying competition among Western defense exporters in Latin America—a region historically dominated by legacy Soviet platforms but now increasingly open to NATO-standard systems.
The proposed sale positions Lockheed Martin’s latest-generation Viper variant against Saab’s newer but less widely fielded Gripen E/F platform. While both aircraft offer AESA radar capabilities and advanced avionics suites, key differentiators include:
- F-16 Block 70/72: Combat-proven design; extensive global user base; higher payload capacity; interoperability with U.S./NATO forces; higher operating costs.
- Gripen E: Lower lifecycle costs; superior short-field performance; strong industrial participation model; fewer existing operators outside Brazil and Sweden.
If Peru ultimately selects the F-16 over the Gripen despite prior indications, it would mark a significant win for U.S.-aligned defense posture in South America—potentially influencing neighboring countries such as Colombia or Ecuador considering future fighter upgrades.
Lima Balancing Capability Needs with Industrial Sovereignty
A central factor in Peru’s deliberations is balancing high-end capability acquisition with domestic aerospace development goals. Saab’s offer reportedly includes substantial technology transfer provisions aimed at bolstering local MRO capacity and potentially co-producing components under license—an approach aligned with Peru’s longer-term defense industrial strategy.
By contrast, while Lockheed Martin does offer some industrial participation under its Global Supply Chain initiative, its packages are typically less generous than those offered by European competitors like Saab or Dassault when it comes to full-scale local assembly or IP sharing.
This dynamic may weigh heavily on Peruvian policymakers seeking not just new fighters but also sustainable sovereign support infrastructure amid constrained budgets and political scrutiny over foreign arms deals.
No Contract Yet: What Happens Next?
The DSCA notification is only an initial step in the complex process of foreign military sales. The Peruvian government must now decide whether to pursue negotiations with Lockheed Martin based on this cleared package—or proceed toward finalizing a deal with Saab instead.
If Lima chooses the latter path despite U.S. approval efforts, it would reflect increased confidence among smaller nations in diversifying their defense partnerships beyond traditional suppliers like Washington—a trend seen recently across Asia and Africa as well.
If it opts for Lockheed Martin’s offering instead—either due to political alignment or perceived capability advantages—it could reshape procurement expectations across Latin America regarding what role U.S.-approved systems will play amid growing multipolar competition in military aviation markets.
Conclusion: Strategic Signaling Beyond Hardware
This episode underscores how modern fighter jet sales are no longer driven solely by platform performance or price—but increasingly reflect broader geopolitical alignments, industrial policy priorities, and long-term sustainment strategies. Whether Peru ultimately selects the American Viper or Swedish Gripen will be watched closely not just by OEMs but also by regional militaries recalibrating their own modernization paths amid shifting global dynamics.
