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Bid for homegrown fighter project fails
By Jun Ji-hye
Korean Air, the nation’s top air carrier, failed to place a bid for the ROK Air Force’s homegrown fighter program by the deadline, making the bidding for the 8.5 trillion won ($7.95 billion) project invalid, the state arms procurement agency said, Monday.
“The Korea Aerospace Industries (KAI) was found to be the sole applier after closing the bid Monday,” an official of the Defense Acquisition Program Administration (DAPA) told reporters.
At least two bidders are needed for the auction to be valid, according to Korean law. A lack of bidders will lead to a second auction later this month.
Korean Air said last Thursday that it planned to submit a bid in collaboration with Europe’s Airbus Defence and Space, but failed to do so, with observers speculating that the two companies needed more time for preparation.
KAI, the nation’s sole aircraft manufacturer, has joined hands with U.S. aerospace giant Lockheed Martin for the project.
The failure of Korean Air to make a bid by the deadline will likely cause a setback in the project because a time delay is inevitable.
DAPA initially planned to review proposals from the two teams and pick a preferred bidder by next month after closing the bid on Monday. The agency had planned to decide a winner by the first half of the year.
Under the law, when a first bid fails, DAPA moves on to a second one.
“The process for the second bid will start Tuesday and be closed on Feb. 24,” the official said.
Observers note that the team of Korean Air and Airbus should be able to buy time until the second deadline, when they are expected to make their bid.
In a third bid, in accordance with the law, the arms procurement agency can push forward with the project even if there is a sole applier.
The project, codenamed KF-X, will develop indigenous F-16 class fighter jets, which are scheduled for service from 2025, to replace the aging F-4 and F-5 jets.
Korean Air and Airbus reached a verbal agreement early last week, and were scheduled to sign a memorandum of understanding to take part in the project.
After its plan to participate in the program was made known to the public, experts and industry watchers predicted fierce competition between KAI and Korean Air.
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