Philippines may put fighter jet plans on hold amid funding crunch

MANILA — The Philippines may delay the acquisition of multi-role fighter aircraft if funding proves insufficient, Defense Secretary Gilberto C. Teodoro Jr. said, as the Department of National Defense weighs a “complete package” approach against calls for an incremental buildup.

Teodoro said acquiring a small number of fighters would have limited strategic impact, emphasizing that such purchases require a minimum quantity to be effective. Follow-on orders tend to become more expensive due to inflation, configuration changes and production factors, he added.

The DND estimates at least 40 fighter jets are needed for a credible deterrent—a number requiring funding far beyond annual appropriations, which have historically been insufficient to fully support major modernization projects.

The government may turn to alternative financing mechanisms such as foreign or local loans, which require legislative approval. Proposals were recently filed in the House of Representatives, though deliberations could take time unless the President certifies the measure as a priority bill.

The DND’s preferred “complete package” includes around 40 fighters along with force multipliers such as aerial refueling tankers and airborne early warning and control aircraft.

However, observers point to alternative strategies used by regional neighbors. Indonesia is acquiring Rafale fighters in batches, while Thailand followed a similar approach with its Gripen fleet. Another option is acquiring second-hand but modernized aircraft—a route taken by Romania and Argentina with F-16s—offering lower costs and faster capability buildup.

Proponents note the New Government Procurement Law, passed in part to give the military greater flexibility in acquiring second-hand but upgradeable equipment, could enable such a path. However, recent statements from DND officials suggest a shift away from that option, with one official telling a congressional hearing: “So yung luma po, ayaw na po namin” (We no longer want older equipment).

Had the DND pursued its original Horizon 2 plan to acquire around a dozen multirole fighters, the project could have been completed years ago, with initial deliveries potentially already in service, according to defense analysts. Combined with upgraded FA-50s and additional newer variants, the air force could now be operating the equivalent of three fighter squadrons.

Instead, changes in acquisition strategy combined with financing difficulties have led to years of delay.

“In modernization, waiting for the perfect opportunity sometimes means losing valuable time to build real capability,” one observer said.