Právo: Sweden offers discount for 10-year Gripen lease to Czechs

Prague, Sept 24 (CTK) - Sweden has offered a one-fourth discount for the extended lease of Gripen fighter jets to the Czech Republic provided that the aircraft are leased for another 10 years, but the Czechs do not want to sign a contract for so long, daily Pravo has written.

"The Czech side wants a lease for five or six years. But the Swedish side does not offer any discount in such a case," a source close to the Czech Defence Ministry told Saturday's issue of Pravo.

Sweden has offered a 10-year lease for 74 percent of the current price, including more additional services and an upgrade of the fighters, a source close to the Swedish negotiators told the paper.

"This is a rather marked lowering of the price," the source said.

The current 10-year lease of 14 Gripen for 19.6 billion crowns expires in 2014.

Under the newly proposed conditions, the Czechs would pay 15 billion crowns, or 1.5 billion a year.

The negotiations about the possible extended lease started in the spring.

Czech and Swedish defence ministers, Alexandr Vondra and Karin Enstroem, met to discuss the issue for the first time last Friday.

Vondra said on Saturday the Czech Republic does not like the current Swedish offer.

Both parties will continue with the talks until the end of November, Vondra said.

He said either the negotiating teams would agree on the conditions of a long-term lease of the fighters or would only extend the existing contract by two to three years and then the government would put up a new tender for the protection of the sky above the Czech Republic.

Former Czech deputy defence minister Jiri Sedivy recently told CTK that there were more alternatives since some countries are getting rid of their redundant fighter jets due to the economic recession.

But Sedivy said the use of new fighters by the Czech military would require further initial costs. If a new tender is declared, the Defence Ministry therefore pushes for a long-term solution to air space protection.

Along with the Czech Republic, the Jas-39 Gripens are being used by Sweden, Hungary, South Africa and Thailand.