Peru Evaluates Dassault Rafale as Favorite for Air Force Acquisition of 24 Fighter Jets

The Peruvian government has initiated a significant step toward modernizing its Air Force by proposing the acquisition of 24 new fighter jets. Among the options being considered, the Dassault Rafale has emerged as the favorite. This French multi-role fighter, known for its cutting-edge capabilities, is poised to become a central component of Peru's future defense strategy.

A Strategic Decision: Peru's Move Toward Advanced Air Power

In late 2024, Walter Astudillo Chávez, the Peruvian Minister of Defense, announced to the National Defense and Internal Order Commission of Congress that provisions had been made in the 2025 budget for the procurement of new fighter jets. The acquisition is framed as part of a broader plan to enhance the country's military readiness and reinforce its air force capabilities. According to the proposed budget, $2 billion has been allocated for this first phase of the project.

Minister Astudillo emphasized the strategic importance of these new jets, stating that they would provide Peru with a critical level of air deterrence in the region. "Once we acquire these aircraft, we will have a formidable defensive position in South America," he said during a session with Congress. This move reflects a shift in Peru's defense priorities, focusing on strengthening aerial power, particularly after years of underinvestment in air defense capabilities.

The Competitors: Rafale, F-16, and Gripen

Three primary contenders are being considered for the Peruvian Air Force’s (FAP) modernization program: the Dassault Rafale, Lockheed Martin F-16V Block 70, and the SAAB JAS 39 Gripen E. Among these, the Rafale has emerged as the unofficial frontrunner, even though its acquisition cost is relatively high.

The Lockheed Martin F-16 faces certain challenges, primarily related to the unpredictable nature of U.S. foreign policy. Additionally, there have been recent operational issues, such as the unexplained loss of an F-16 donated to Ukraine during an air interdiction mission, raising concerns about its reliability in combat situations. While the F-16 remains a capable and battle-tested fighter, these factors could sway Peru away from its selection.

On the other hand, the Saab Gripen E has garnered interest due to its cost-effective operational capabilities and its association with Embraer and the Brazilian Air Force (FAB). Brazil is set to become a regional hub for the maintenance and upgrading of Gripen fighters, which could offer logistical and operational advantages. However, like the F-16, the Gripen E is an evolution of its original platform, whereas the Rafale is a completely new design, replacing the Mirage 2000, a fighter with which Peru is already familiar.

Why the Dassault Rafale?

The Dassault Rafale stands out for several reasons, and these advantages have positioned it as the likely victor in the Peruvian competition.

First and foremost, the Rafale is the only twin-engine fighter being seriously considered in this phase of the procurement process, which makes it a more robust and capable platform in terms of power and survivability compared to the single-engine F-16 and Gripen E. Its performance in combat situations has been consistently proven, particularly in operations conducted by France in the Middle East and North Africa, where its versatility in both air-to-air and air-to-ground missions has been demonstrated.

Moreover, the Rafale F4, the latest iteration of the fighter, offers state-of-the-art avionics, advanced radar systems, and multi-role capability, which allows it to excel in a variety of mission types, including air superiority, ground support, and reconnaissance. In contrast, the Gripen E is still being developed and integrated into service with the Brazilian Air Force, and the F-16V, while modernized, is a platform with decades of service.

The Rafale’s ability to operate effectively within the NATO framework is another advantage, as it is fully interoperable with NATO systems. This could be particularly beneficial as Peru seeks to modernize its military within the context of broader geopolitical dynamics, aiming to enhance its defense collaboration with Western allies.

A Broader Trend in Latin America

The Dassault Rafale is also gaining momentum across Latin America, as several countries in the region, including Colombia, are seeking to upgrade their aging fighter fleets. In 2021, Colombia selected the Rafale over competitors like the Eurofighter Typhoon, signaling a growing preference for the French aircraft among South American militaries. Although Colombia has not yet finalized the contract, it appears likely that Peru could be the first country in the region to introduce the Rafale into service.

The selection of the Rafale for Peru’s Air Force would represent a significant shift away from the reliance on Russian-made fighters that have historically formed the backbone of the country’s aerial combat capabilities. 

The Peruvian Air Force currently operates MiG-29s and Su-25s purchased from Belarus in the 1990s, as well as Mirage 2000P fighters acquired from France in the 1980s. However, much of this fleet is nearing the end of its operational life, with only a handful of MiG-29s and Su-25s still in service.

Financial Aspects and Offsets

The overall cost of acquiring 24 Rafale jets is estimated at around $3.5 billion, with a significant portion of the funding coming from national debt instruments and sovereign bonds. The initial $2 billion is expected to come from the 2025 national budget, with the remaining balance covered by 2026.

 An essential component of the procurement process is the offset agreement that would accompany the purchase. Peru is looking to secure significant technological and industrial benefits as part of the deal, which would include the transfer of aerospace technology and the development of domestic industrial capabilities in partnership with local private companies. These offsets could play a crucial role in supporting the growth of Peru’s defense industry, creating jobs, and boosting the country’s economy.

The Dassault Rafale offers compelling advantages in this regard, as France has a well-established track record of integrating offset agreements into its defense exports. This could be a deciding factor, as the Peruvian government is keen on securing long-term benefits that go beyond the immediate acquisition of military hardware.

Looking Forward: A Strategic Air Force Modernization

Peru's decision to modernize its air force has been a long time coming, with discussions about upgrading the aging fleet dating back to at least 2013. The final decision will be based on a combination of technical, economic, and offset considerations, with the Dassault Rafale currently leading the pack.

Minister Walter Astudillo Chávez has expressed confidence that this acquisition will allow Peru to "recover its full operational capabilities" and ensure that the Peruvian Air Force can effectively fulfill its constitutional roles in defending the nation. The delivery of the first aircraft is expected by mid-2026, with the full fleet operational by the end of the decade.

In conclusion, while there are other contenders, the Dassault Rafale stands out due to its superior performance, twin-engine reliability, and attractive offset packages. If selected, the Rafale would mark a significant upgrade in Peru’s air combat capabilities and position the country as a regional leader in military aviation.