Boeing is not with Korea Airline bid, instead KAL is with Airbus Military only. What kind of offer they will give remain to be seen.
KAI, KAL squaring off in homegrown fighter project
2015-02-06
By Kang Seung-woo
Korean Air's planned participation in the nation's indigenous fighter program has finally set up a two-horse race. The other competitor is Korea Aerospace Industries (KAI).
The 8.7 trillion won ($8 billion) project, codenamed KF-X, is to build F-16 plus class jets with the help of global defense contractors to fill a fighter gap expected over the next decade.
Korean Air recently teamed up with Airbus Defence and Space, while KAI plans to take advantage of technology transfers from Lockheed Martin in the F-X program, which will see Korea buy 40 F-35 stealth fighters from the U.S. firm.
Aviation pundits said that each player is heading to the KF-X with its own fighting chance.
"Of the Korean companies, KAI has more experience producing fighter jets," said Greg Waldron, Asia managing editor of Flightglobal, an aviation and aerospace industry website.
"In addition to the T-50 program, it also has experience in other production and re-manufacturing work. In short, with Lockheed's help it has participated in the development of a fighter from start to finish."
KAI and Lockheed co-developed the T-50 supersonic trainer jet in 2001 and the Korean company, based in Sacheon, South Gyeongsang Province, has also manufactured its aerobatic and combat variants, namely the T-50B, TA-50 and FA-50, as well as the Surion utility helicopter.
James Hardy, Asia-Pacific editor of IHS Jane's Defense Weekly, echoed Waldron.
"KAI would seem to have a major advantage in that it has already produced designs for the KF-X and has a proven record with the T-50 program," said Hardy.
"That will be extremely difficult for DAPA to ignore."
DAPA stands for the Defense Acquisition Program Administration.
In terms of the foreign partners ― Lockheed and Airbus ― the U.S. company seems to be more assertive. Airbus Defence and Space is a descendant of Airbus Military ― a subdivision of the defunct EADS. EADS competed with Lockheed and Boeing in the F-X program.
"Lockheed Martin will push its experience with the F-35, its work on the T-50, and its successful partnership," said Hardy.
"It will also play up the transfer of technology that this will play as part of the F-35 sale."
Waldron also questioned Airbus' technology and knowhow to contribute to an advanced, modern fighter aircraft.
"Airbus Military is mainly focused on transports and tankers. They are very good at what they do," he said.
Currently, Airbus is also vying with Boeing and Israel's IAI in Korea's purchase of four aerial refueling tankers.
However, analysts also say that Korean Air can appeal to the nation's arms procurement agency.
"Korean Air may look to EADS to leverage its experience with the Eurofighter Typhoon, which fulfills many of the 4.5 gen fighter requirements outlined by the KFX requirement," said Hardy.
The Typhoon is an aircraft that EADS promoted in the F-X program against Boeing's F-15 Silent Eagle and the F-35. Korean Air also built the Air Force's KF-5E/F under license between 1982 and 1986.
DAPA's assessment on bids from KAI and KAL will be comprised of 80 points for the technological capabilities and 20 for price.
However, Waldron expressed concerns over the transfer of technology from Lockheed to KAI.
"Given the sensitivity around designing a new fighter, and the complicated technology involved, it is often difficult to tell, from the outside, the level of technological transfer that really takes place," he said.
"Another element that cannot be ignored is that a great deal of the technological knowhow that Lockheed possesses is controlled by the U.S. government. The U.S. government will, no doubt, have a great degree of influence in the U.S. content that goes into a foreign fighter design developed with U.S. assistance."
In July, the Joint Chiefs of Staff decided to go with a two-engine platform for the project.
Korea and Indonesia have agreed to a joint engineering and development agreement ― the latter paying 20 percent of the program costs and later buying 50 aircraft.
However, Waldron said the signing may adversely affect the transfer of technology.
"Some industry observers have told me that Indonesia's 20 percent involvement in the KF-X program could be of concern to the U.S.," he said.
"The U.S. government trusts South Korea, but could have concerns about very sensitive technology making its way to Indonesia."
Indonesia was under a U.S. arms embargo until 2005.
The KF-X, initiated by the late former President Kim Dae-jung in March 2001, had been delayed due to budget constraints and questions over its feasibility.
The Air Force plans to secure 120 new jets to replace its aging fleet of F-4s and F-5s under the project.
DAPA is scheduled to close the bidding process on Monday to select a preferred bidder in March before a final selection by the first half of the year.
KAI, KAL squaring off in homegrown fighter project