The defense and security company Saab announced that Hungary is taking a long-term strategic decision to continue operating Gripen and ensuring the continued development of its national capability.

Sweden and Hungary are extending the cooperation for another ten years, until 2026.

Earlier this week, the Swedish Defense and Security Export Agency, FXM, confirmed that Sweden and Hungary have chosen to extend their Gripen partnership for a further 10 years.

Negotiations have been taking place in recent months and, on Monday 30 January 2012, the new contract was signed by FXM's Director General, Ulf Hammarström, and Gyula Keszthelyi who is the Director General for Hungary’s Armament and Quartermaster Office.

“We are delighted that Hungary has taken a long-term strategic decision to continue operating Gripen and has thereby chosen to continue in partnership with Sweden and other Gripen operators," said Ulf Hammarström after signing the contract.

“The news that Hungary extends the Gripen contract by ten years is extremely positive. Once again it confirms that Gripen is one of the world’s leading fighter aircraft that meets the operational, technical and cost requirements of the market,” says Lennart Sindahl, Executive Vice President and Head of Business Area Aeronautics, Saab.

The partnership is a contract between two governments, where Saab acts as a sub-contractor.

In 2001 the Swedish and Hungarian governments entered into a lease-purchase agreement, with a further modification in 2003 that included 14 Gripen C/D (12 single-seater and 2 two-seater aircraft).

All aircraft were delivered in 2006 and 2007, and all 14 aircraft were in operation with the Hungarian Air Force by the end of 2008. The current contract was due to expire in 2016, but the countries have now decided to extend the partnership by another 10 years.