Korea Aerospace Industries (KAI) is considering ways to cut costs to make its T-50A aircraft competitive in the United States’ Air Force (USAF) trainer jet competition, said the new chief of Korea Aerospace Industries on Friday.
At a press conference held at KAI’s headquarters in the Korean city of Sacheon, the company’s new President and CEO Kim Jo-won said KAI is seeking ways to adjust the unit price of the T-50 advanced trainer jet at the request of its US partner Lockheed Martin.
“To win in the bidding competition with Boeing, Lockheed Martin is demanding its partner KAI cut the cost,” he said. “It’s a life or death opportunity for KAI and we have been making efforts by transforming the management and cutting costs including labor costs,” Korea Herald reported.
The comment came amid intensifying competition for the US Airforce’s advanced pilot training project, known to be worth some 17 trillion won ($15 billion). The final result is expected to be revealed in the first or second quarter of next year, according to the company.
KAI also plans to push ahead with entering the maintenance repair business, an attempt to stabilize its sales in the long term. The government is expected to give business approval by January, and KAI is likely to launch an affiliate to run the business, said Kim.
Hit by corruption scandals and mounting losses, the company will seek a turnaround next year. It has resumed deliveries of its rotorcraft and is making efforts to secure additional orders overseas.
KAI will deliver around 30 Surion helicopters to the military, Korea Forest Service and police starting next year.
Last week, the company signed a $780 million deal with the Philippine government to deliver the FA-50PH training simulator by March 2019.
According to Kim, in 2018, KAI will develop talks countries such as Argentina, Botswana, Indonesia and the Philippines to export its trainer aircraft FA-50PH. He added that the company is expected to clinch at least two deals from countries with which the company is currently in talks.
In the third quarter of this year, the company posted a year-on-year sales decline of 92.1 percent in aircraft exports and 34.5 percent in its military business, largely due to provisioning and suspended trading.
Korean Aerospace Industries CEO has offered to resign due to the on-going investigation charges of inflating research and development (R & D) cost of a defence project and swindling funds. The prosecution is scrutinizing the allegations that KAI Chief Executive Ha Sung-yong lobbied Cheong Wa Dae officials and lawmakers for his reappointment in May 2016
Lockheed Martin-Korean Aerospace Industries jointly developed T-50 A training jet will be competing in the US Air Force new training planes contract estimated over $8 billion. The USAF aims to replace its T-38 fleet in 2017 and could eventually buy upto 600 planes, Reuters reported Friday
South Koreas Defense Acquisition Program Administration (DAPA) and Korea Aerospace Industries (KAI) have formally signed an agreement to develop KF-X fighter aircraft. According to the agreement signed today, DAPA will finance 60 per cent of the 8 trillion won (US$6
Thailand's air force on Wednesday commissioned the first batch of South Korea-built T-50 Golden Eagle lead-in fighter trainers into service. Four T-50TH supersonic advanced trainers of 401st Squadron was inducted into the RTAF during the commissioning ceremony on 4 April at an airbase in Nakhon Sawan, in a commissioning ceremony presided over by RTAF Commander Air Chief Marshal Johm Rungswang, Defence Blog reports
The Korean Aerospace Industries-Lockheed Martin joint bid for the US Air Force Advanced Pilot Training project, the T-50A trainer jet is “well placed” to win the contract, a South Korean think tank, the Korea Institute for Industrial Economics and Trade (KIET) has said. The KIETs 2018-2022 forecast said that Korea's T-50A is well placed to secure the Advanced Pilot Training project that could be worth some 14 trillion won ($13 billion)
Lockheed Martin plans to reduce per unit cost of F-35 fighter jet to $80 million by 2020. With the incorporation of lessons learned, process efficiencies, production automation, facility and tooling upgrades, supply chain initiatives and more – the F-35 enterprise has already significantly reduced costs and improved efficiency, the company said in a statement Monday
Lockheed Martin has test fired production-configuration Long Range Anti-Ship Missiles (LRASM) from a US Air Force B-1B bomber. During the test over the Sea Range at Point Mugu, California, B-1B aircrew simultaneously launched two LRASMs against multiple maritime targets, meeting the primary test objectives, including target impact, the company said in a statement Wednesday
Lockheed Martin and the North Atlantic Treaty Organization (NATO) Support and Procurement Agency (NSPA) have signed a five-year agreement for the agency to purchase Enhanced Laser Guided Training Rounds (ELGTRs) on behalf of member countries. The follow-on agreement is in effect through 2021 and provides for the purchase of up to 3,000 ELGTRs a year for the next five years, the company said in a statement Wednesday
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