Tuesday, August 20th, 2013
The main reason behind the optimistic prediction is based on "offset trade," the generally accepted trade practice in the defense area offered by bidders in the form of technology transfer or parts and components orders to domestic suppliers. Regardless of which company will win the US$7.4-billion tender to supply 60 fighter aircraft for Korea's Defense Acquisition Program Administration, Korea Aerospace Industries will take lucrative orders through the offset arrangement.
On the 19th, Boeing's F-15 Silent Eagle was left the only bidder below the price ceiling set by the Defense Acquisition Program Administration, with other two competitors, Lockheed-Martin's F-35 stealth and the Eurofighter consortium's Typhoon, being eliminated from the race. The arms procurement agency will have to restructure the bidding from the ground up or end up selecting Boeing as the final winner.
Hana Daetoo's Lee said, "What's more important for KAI is get the bidding finalized as soon as possible rather than who will get the job."