The floodgates are about to open on billions of dollars of global military spending on new combat aircraft. With several hundred fighter purchases up for grabs, the stakes are high for all the entrants.

The issues differ somewhat for each company. Boeing and Lockheed Martin would like to prolong the production lives of their F-15 and F-16 lines, respectively; Dassault wants to finally secure its first export order, and Eurofighter Typhoon is trying to expand its base to compensate for potential cuts from core customers. So it's hard to pinpoint any one contender that has the most riding on the contests now unfolding from Brazil to Japan. Clearly, though, the stakes for Saab and its Gripen are formidable.

Lockheed Martin is poised to transition to the F-35 from F-16 production; Dassault will be building Rafales for the French government, albeit at paltry rates, for some time; and the Typhoon should be in production for the next decade. However, Saab lacks a strong domestic customer base, so its situation is more uncertain than its rivals'. Although the Swedish government supports the company's overseas ambitions, domestic procurements are hardly enough to sustain Gripen in the long term.

As a result, Saab has opted for a two-pronged strategy - on the one hand, using its existing product to satisfy countries with immediate needs and, on the other, devising a completely new version, the Gripen Next Generation.

The NG boosts the fighter's range and payload, while offering an updated combat suite with the addition of an active, electronically scanned array (AESA) radar.

The NG also features an enhanced missile warning system using ultraviolet sensors with 5-km. (3.1-mi.) detection range. Other specifications include a high-data-rate communications system (being integrated by Saab and Thales), a low-rate data terminal and an image-transmitting wideband link offering 250-Kbps. throughput. Furthermore, the system allows for the eventual installation of directed infrared countermeasures. Aircraft designers considered future needs looming on the horizon, rather than the goals of a particular customer, says Pierre Gauffin, Gripen International's head of product capabilities.

To allow for a higher maximum takeoff weight, the main landing gear was strengthened and relocated. The change opened up space for extra fuel, thereby increasing range. This approach also avoided major outer mold-line alterations, which had been considered to achieve the range increase.

Moreover, Gripen NG embodies a new business model that aims to cut costs even with low production rates. "The market is extremely price-sensitive," and the build approach for the new version reflects this, says Bob Kemp, marketing director for Gripen International.

In the past, Gripen embraced technologies that designers modified to fit specific needs - as was the case with the General Electric F404 engine that Volvo turned into the fighter's RM12 powerplant. For the Gripen NG, Saab went directly to GE and asked for an F414, the latest version of the F/A-18E/F's engine with minimal changes. The F414G features some adjustments to the full-authority digital engine control and power supply, largely because Gripen is a single-engine fighter (whereas the F/A-18E/F has two engines). This seemingly innocuous change allows Saab to reduce engine costs 20%, even though the F414 is a higher thrust engine with a greater sticker price than the F404.

This design approach permeates the Gripen NG, says Kemp. Suppliers such as Honeywell and Rockwell were asked to provide their latest product and let Saab worry about integrating them, rather than devising tailor-made derivatives for the Gripen NG. To keep costs low, the NG may embrace the same pilot helmet used on the F-35.