Sweden and Hungary yesterday signed a new contract to continue operating Gripen fighter aircraft another 10 years, until 2026.

Saab, a Swedish defense and security company, said Hungary made the long-term strategic decision to continue operating Gripen and ensure the continued development of its national capability.

The Swedish Defence and Security Export Agency, FXM, Monday confirmed that Sweden and Hungary have chosen to extend their Gripen partnership. Negotiations had gone on over recent months and the new contract was signed Jan. 30 by FXM Director General, Ulf Hammarström, and Director General for Hungary’s Armament and Quartermaster Office Gyula Keszthelyi.

“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,” Hammarström said after signing the contract.

“The news that Hungary extends the Gripen contract by 10 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,” said Lennart Sindahl, executive vice president and head of Business Area Aeronautics, Saab.

The partnership is a contract between two governments, where Saab act 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-seat 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.