Peru Eyes F-16 Purchase in $3.5 Billion Drive to Modernize Air Force

According to Peru’s Defense Ministry, a high-level delegation will visit Washington D.C. from May 4 to 7. It will discuss a potential F-16 purchase. They will meet U.S. Defense Secretary Pete Hegseth.

This trip comes amid an open tender to replace Peru’s aging MiG-29 and Mirage 2000 jets. Peru plans to buy 24 multirole fighters: 20 single-seat and 4 two-seat aircraft.

The government secured a 7.58 billion-sol loan from Banco de la Nación under the 2025 budget. This loan, equivalent to about $2 billion, will fund the first 12 jets. It will finance the remaining aircraft in 2026.

Peru first acquired Mirage 2000 jets in 1984 to counter regional tensions. Later, it added MiG-29 fighters in 1988 under bilateral agreements. These platforms now face obsolescence after more than 35 years in service.

Peru’s current fleet endures frequent maintenance issues and spare-part shortages. These factors have eroded flight-readiness levels. Meanwhile, neighboring air forces also pursue upgrades to avoid obsolescence.

Regional officials cite deterrence and counter-narcotics as key mission drivers. Delegates will evaluate Lockheed Martin’s F-16V Block 70, Saab’s Gripen E/F, and Dassault’s Rafale F4.

Peru’s Fighter Jet Acquisition

The F-16V offers a proven combat record, advanced avionics, and a global support network. The Gripen delivers lower operating costs and broad technology-transfer clauses.

The Rafale provides multirole capabilities, AESA radar, and stealth-enhanced features but at a higher price. KAI’s KF-21 Boramae exited the shortlist due to its developmental status. Officials prioritized fielded aircraft with mature support systems.

The acquisition will include weapons packages, simulators, and spare parts. It also covers training programs and logistics support. Contractual offsets aim to boost local maintenance capacity. These measures could strengthen Peru’s aerospace industry over time.

Peru financed this project through domestic borrowing and sovereign bond placements. Banco de la Nación will issue a 7.58 billion-sol loan repayable over 18 to 25 years.

This structure shields annual budgets from sudden defense spikes. Additionally, Peru plans to acquire two Boeing 737NG transports under a $45 million deal.

Officials must weigh acquisition costs, life-cycle expenses, and strategic autonomy. Their final choice will reshape Lima’s defense partnerships. Observers expect a decision by late 2025.