KAI expects W1 tln deal from Airbus
Byun Sang-bong, senior vice president and general manager of Korea Aerospace Industries’s Commercial Aircraft Business Division, right, poses with Pierre Jaffre, president of Asia-Pacific operations of Airbus Group, after they signed an initial pact in Seoul, Monday, to extend business ties. / Courtesy of Korea Aerospace Industries
By Choi Kyong-ae
Korea Aerospace Industries (KAI) said Monday it had signed an initial agreement with Airbus to deliver more aircraft parts worth 1 trillion won ($885 million) to the European airplane maker.
“Under a memorandum of understanding, we are taking part in Airbus’ development project of a mid-size plane. Our participation in the project means KAI is qualified to produce parts for it in new orders,” a KAI official said.
The official didn’t elaborate on the timeframe for new orders.
KAI, Korea’s sole aircraft manufacturer, has provided parts for airplanes manufactured not only by Airbus but also by Boeing over the past decades.
On top of this, KAI has maintained business partnerships in the fields of maintenance, repair and operation (MRO), helicopter and satellite manufacturing, the company said in a statement.
“In the helicopter business, KAI will join hands with Airbus in marketing activities for the multipurpose Surion helicopter,” the official said.
The Surion, jointly developed with Airbus, is a multipurpose Korean-made helicopter which can carry nine people during combat and travel at a speed of 162 mph for at least two hours.
In the aerospace business, KAI is expected to gain support from Airbus to push forward its aerospace and satellite projects, according to the statement.
In an extended effort to cement business ties with Airbus, KAI belongs to the joint development team for the next-generation A350 XWB passenger jet. It is a supplier of lower wing parts and other core sections of all airplanes produced by Airbus such as the A320.
Moreover, KAI is seeking help from Airbus in developing the light attack helicopter and the light civil helicopter and joint marketing for the helicopters, the official said.
For the whole of this year, KAI expects exports of airplane parts to reach 910 billion won mainly to Airbus and Boeing, up 21 percent from 750 billion won a year earlier, the statement said.
By 2020, KAI aims to more than double the figure to 2 trillion won.