The Business insider made repeated mistakes in this reports as Korean Air and Airbus companies is competed for KFX/IFX programme not for F-16, and they compete against KAI and Lockheed Martin consortium backing up by Korean DAPA. The tender bid has been failed and due to re tendering again this week.
the original trusted source from Yon Hap agency
Korean Air, Airbus join hands for S. Korean fighter project
2015/02/05 11:14
By Oh Seok-min
SEOUL, Feb. 5 (Yonhap) -- South Korea's top air carrier Korean Air Line Co. plans to sign a partnership agreement with Europe's Airbus this week to jointly bid for Seoul's indigenous fighter development program, officials said Thursday.
Codenamed KF-X, the 8.5 trillion won (US$8.3 billion) project calls for South Korea to develop and produce some 120 fighter jets of the F-16 class to replace its aging fleet of F-4s and F-5s.
"The two sides reached a verbal agreement earlier this week to jointly bid for the development project," an informed official said on condition of anonymity.
After signing a memorandum of understanding this week, Korean Air and Airbus Defense and Space are scheduled to place a bid next week, he added.
The country's state arms procurement agency, the Defense Acquisition Program Administration (DAPA), is scheduled to close the bidding process on Monday. It will choose a preferred bidder next month before a final selection around July.
Industry watchers said the duo is expected to vie fiercely with the team of Korea Aerospace Industries (KAI) Ltd., South Korea's sole aircraft manufacturer, and Lockheed Martin of the U.S.
KAI has a technical edge over Korean Air based upon its experience developing the T-50 Golden Eagle supersonic trainer and the country's utility helicopter, Surion, while the latter has larger investment capacity, they added.
"Airbus would be able to complement Korean Air in terms of technical issues. The South Korean military decided to use the twin-engine platform over the single-engine one, and Airbus is familiar with the platform after building the multi-role fighter, Eurofighter," another official said.
An artist's rendition of the indigenous Korean fighter jet (Yonhap file photo)
graceoh@yna.co.kr
Korean Air, Airbus join hands for S. Korean fighter project
From Industry week
Airbus, Korean Air to Bid for South Korea Military Deal
Feb 5, 2015
SEOUL - European aerospace giant Airbus and South Korean flag carrier Korean Air will make a joint bid to develop new jet fighters for Seoul's air force, a report said Thursday.
The two firms recently agreed to make the joint bid for the project -- intended to produce 120 aircraft to replace the South's ageing F-4 and F-5 jet fighters -- Yonhap news agency said, citing an unnamed KAL official.
"We have reached an agreement verbally and plan to sign a memorandum of understanding as soon as possible to make the joint bid by February 9," said the official quoted by Yonhap.
The South's state-run Defense Acquisition Program Administration (DAPA) is expected to close on Monday the bidding for the project, estimated to be worth more than $8 billion.
The US aerospace giant Lockheed Martin reportedly teamed up with the Korea Aerospace Industries to make the bid.
The final winner will be announced in June or July, Yonhap quoted a DAPA official as saying.
South Korea's military has overwhelmingly chosen US suppliers in the past, especially where the airforce is concerned, reflecting their close military alliance.
But Airbus has also made a number of bids for the South's military contracts in recent years, including a $1.38 billion deal to provide air fuelling tankers. The final bidder for the deal has not been chosen yet.
Copyright Agence France Presse, 2015
Airbus, Korean Air to Bid for South Korea Military Deal | Competitiveness content from IndustryWeek
From Korea Times
Updated : 2015-02-05 19:17
Korean Air, Airbus to have partnership on fighter jet project
음성듣기 By Jun Ji-hye
Korean Air, the Nation's top AIR Carrier, Plans to sign a Partnership Agreement with Europe's Airbus Defence and Space to jointly Participate in Seoul's Indigenous Fighter Development Project, According to the airline, Thursday.
"The two companies reached a verbal agreement earlier this week, "a press officer of the air carrier told The Korea Times. "They plan to sign a Memorandum of Understanding Soon with a View to a formal Bid Placing Next Monday."
The latest Agreement Made the Bidding a Neck and Neck Race as Korea Aerospace Industries (KAI), Partner Together with ITS, the US Aerospace Giant Lockheed Martin, are Also Bidding for the Project.
Under the Project, codenamed KF-X, the government Plans to Spend 8.5 trillion won ($ 7.95 billion) to Develop Indigenous F-16 class Fighter jets, Which are scheduled for service from 2025, to REPLACE aging F-4 and F-5 jets.
Bidders are supposed to Submit Their Proposals by Monday.
"After Korea Air and KAI Submit Proposals, the Defense Acquisition Program Administration (DAPA) Review them and will pick a Preferred bidder by Next month, "said a DAPA official on the condition of anonymity. "Negotiations with the Preferred bidder will Take Place until May. Then, a DAPA would Decide Winner by the first half of the year."
The Project Plans along with Technical Proposals should include Transfers from TAC (Technical Assistance Company).
The Official noted, "With the participation of the European Company for Korea as TAC Air, the Bidding procedure is looking like a Game of Chicken as the two Sides are expected to Engage in Cutthroat competition."
Korean Air for the KF-X Project prepared by forming a Task force last year. Experts have noted that an Advanced Technical Cooperation with foreign Company would be Essential for the AIR Carrier to Compete against KAI, Which already has Experience in Developing T-50 supersonic Trainers.
In Particular,
Airbus has the Merits of a comparatively Technical Easy Transfer, given that European countries have less strict rules to Control this Compared to the US, Which would hinder KAI's Partner Lockheed Martin.
A Number of Experts said, however, that KAI seemed to have the Upper hand in the Bidding thus FAR.
The State-Run Company is considerably Planning to Increase Personnel in charge of Research.
"We can meet the deadline and Development Cost of the jet," said President and Chief Executive KAI Ha Sung-yong during a Meeting with Reporters at the end of last month.
Boeing was once thought to be in Partnership with Korean Air for the KF-X Project, but it reportedly turned down ITS plan to Concentrate more on another contract to supply with the ROK Air Force refueling tankers Four in-Flight.
Korean Air, Airbus to have partnership on fighter jet project
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