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An Israeli firm and a European consortium seem to have knocked U.S. firms out of the bidding for the much-delayed Korean Helicopter Project and an airborne early warning system, the so-called E-X project.
It is almost unprecedented for U.S. aerospace firms to lose out to rivals from other countries in Korean arms procurement. The projects have a combined budget of W7 trillion (about US$7 billion).
According to sources in the industry and the armed forces, Korean Aeronautics Industries wrapped up negotiations last Friday with the French-German manufacturer Eurocopter, whose product best met the qualifications for the scaled-down helicopter project. Eurocopter had been in competition with Bell of the U.S. and AWIL, a British-Italian venture, whose bids did not meet requirements.
The Defense Ministry will finalize its decision after consulting a committee on the KAI recommendations and investigating the potential for technology transfer.
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E-737 from Boeing of the United States (left) and G-550 from IAI ELTA of Israel
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As for the E-X project for which the E-737 from Boeing of the United States and G-550 from IAI ELTA of Israel are competing, the G-550 is reported to have passed the capability tests of the ROK air force, and the government is likely to go with the cheaper project. IAIĄ¯s bid is reportedly a good $300 million to $500 million lower than BoeingĄ¯s. The Defense Ministry will make a decision after final price negotiations.
Observers sense a link between the snub to U.S. manufacturers, who have had one of their most faithful customers in Korea in the last five decades, and moves toward a more independent Korean defense. But the Defense Ministry says the decision has nothing to do with the state of the alliance.
(englishnews@chosun.com )
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