Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Korean Air open to playing part in Canadian submarine bid
Korean Air Chairman Cho Won-tae, front row right, then-head of the airline's business strategy division, poses with then-Bombardier President Gary Scott, front row left, after signing an agreement to buy CS300 aircraft from the Canadian company in Paris, June 22, 2011. Courtesy of Korean Air
By Park Jae-hyuk
More purchases of Bombardier aircraft seen as possible way of cooperation
Korean Air said Monday it is open to supporting Hanwha Ocean’s consortium in its bid to beat Germany’s TKMS for Canada’s order of 12 patrol submarines worth 60 billion Canadian dollars ($43 billion). The deal would mark the largest single contract in Korea’s defense export history if successful.
Along with Hyundai Motor, which has already received Ottawa’s request to invest in Canada’s car industry in exchange for the massive submarine deal, Korean Air has been mentioned as one of the companies expected to join senior government officials and Hanwha executives on their planned visit to Canada later this month.
“We are considering ways our company can contribute to the project,” a Korean Air official said.
The airline’s willingness to support the Korean shipbuilder contrasts sharply with Volkswagen’s stance. The German carmaker denied any role in the bid despite Ottawa’s request for additional auto investments, saying last week it has no involvement in the ongoing competition, no cooperation with TKMS and no intention to help the German shipbuilder win the contract.
Although the Korean Air official said details of the cooperation remain undecided, industry officials expect the carrier to buy more aircraft from Canada’s Bombardier.
Korean Air, which became Asia’s first airline to purchase Bombardier planes in 2011, is now set to deliver the aircraft maker’s G6500 business jets to the Republic of Korea Air Force after installing defense systems that will allow them to serve as airborne early warning aircraft.
Amid growing optimism about Korean companies’ participation in the submarine project that has now been pursued as a government-to-government initiative, Hanwha has also stepped up its efforts to promote its submarine technologies in Canada.
According to Canadian news outlets, the Seoul-based conglomerate recently launched an ad blitz in downtown Ottawa to familiarize residents and travelers with the company and showcase the scale of its submarines for the competition.