A recent decree from the Ministry of Defense revealed that the ministry and the Danish company Terma A/S are processing a contract aimed at developing and implementing an avionics hardware and software upgrade for the future F-16 fighter jets of the Argentine Air Force.
This information comes from Decree 423/2025, a provision through which the Executive authorized the Ministry of Defense to agree to a jurisdiction waiver in favor of the Danish Institute of Arbitration, headquartered in Denmark, “…through the system it administers, in the Contract for the development and implementation of the avionics hardware and software upgrade of the MULTIROLE FIGHTER weapons system to be signed between the aforementioned Ministry and the company TERMA A/S…”.
This waiver is necessary because the contract stipulates, regarding dispute resolution, “…a preliminary stage of amicable resolution through cordial communications, and if the matter cannot be resolved in this way, it shall be settled through arbitration administered by the Danish Institute of Arbitration, based in the Kingdom of Denmark…”.
It is worth highlighting that Terma A/S has extensive experience with the F-16 Fighting Falcon, having carried out various upgrades and enhancements that have kept the American-designed fighter jets up to date and endowed them with new capabilities.
Among Terma A/S’s products are the Advanced Countermeasures Dispenser System (ACMDS), as well as the Pylon Integrated Dispenser System (PIDS) and the Electronic Combat Integrated Pylon System (ECIPS). These last two systems have served as platforms for a wide range of solutions aimed at increasing self-protection and electronic warfare capabilities.
For the F-16 fighters, Terma also offers the 3D Audio Aircraft Management System (AAMS). “…This advanced communication and situational awareness solution improves pilot situational awareness, survivability, and reduces workload by providing warning tones, audio cues, and radio messages in a full 360-degree spherical representation… The system also features Active Noise Reduction (ANR) and Electrical Noise Reduction (ENR) to reduce pilot stress and fatigue…”, the Danish company details.
F-16 upgrade contract with Lockheed Martin
In the first week of March 2025, the U.S. government awarded a contract to Lockheed Martin to provide various upgrade services and support the transfer and modernization process of the F-16 Fighting Falcon jets for the Argentine Air Force.
According to the U.S. Department of Defense, Lockheed Martin was awarded a contract “…with a maximum value of $265,960,280 for support of the F-16 system program under Foreign Military Sales (FMS)…”, which includes “…the upgrade of the operational flight program and the transfer of F-16 aircraft from Denmark to Argentina…”. The publication specified that the work on the new Argentine fighters will take place in Fort Worth, Texas; Denmark; and Argentina, “…and is expected to be completed by March 31, 2032…”.
According to statements made to Zona Militar by Commodore Juan Manuel Sosa and Vice Commodore Cristian Giaccaglia, who lead the Argentine Air Force’s “Peace Condor” Program, “…this weapons system undergoes modernization every 2 or 3 years, continuously. This program includes all upgrades developed up to now. The latest available software and hardware updates will be installed…”.
The Argentine Air Force expects to receive its first six F-16 Fighting Falcons in December, a batch consisting of four two-seat and two single-seat aircraft. The Air Force has consistently emphasized that preparations for the reception and incorporation of the F-16s cover numerous areas. “…The two main ones are Personnel Training and Infrastructure Works, but there are many other areas in which we are also working…”.
The “Peace Condor” leaders also highlighted that “…We are working to have Argentine pilots fly the aircraft. The idea is for them to participate in the ferry flights together with foreign pilots, so that as they gain experience, and as far as possible, the third or fourth batch of aircraft will be flown by Argentine crews. Deliveries will continue with six aircraft per year until all twenty-four are received…”.
