Saab worries Korea will buy Boeing's anti-sub planes with no bids

The Korea Times

The Korea Times

National

Tue, September 26, 2023 | 07:42

Defense

Saab worries Korea will buy Boeing's anti-sub planes with no bids

Posted : 2018-03-21 10:10

Updated : 2018-03-21 17:14

Saab's Swordfish anti-submarine patrol aircraft / Saab

By Oh Young-jin

Saab is in for a difficult competition in Korea.

By the lie of the land, the Swedish company may not get a chance to bid for Korea's $1.7 billion purchase deal for anti-submarine aircraft.

Even if it is allowed, it is widely seen as a spoiler for Korean buyers to use to get a better deal from an American defense contractor.

Just for that purpose ― lower cost, greater technology transfer and bigger "offset" deals for the stalling next-generation fighter program ― it looks tempting to give Saab what it wants and pit it against Boeing's Poseidon.

"Give us an open competition," said Richard Hjelmberg, head of Saab's marketing and sales, in an interview. He was a member of a delegation in Seoul from Sweden to pitch the Swordfish anti-submarine system ― a Saab system integrated on Bombardier's Global 6000.

Saab marketing head Richard Hjelmberg speaks during an interview./ Korea Times photo by Oh Young-jin

There were three strong points for Swordfish that Hjelmberg talked about over its competition ― he was reluctant to say by name Boeing or Poseidon on the platform of the much larger B737.

First, the Bombardier's aircraft weighs roughly half of B737 so it can take off and land on the runway at the ROK Naval Base in Pohang. The Pohang runway is 7,000 feet long, more than the 6,500 feet, the Swordfish needs with a full load, but shorter than the Poseidon's required 10,000 feet. Harding the runway's surface and strengthening its foundations would additionally be needed for the latter. "With the G6000, the aircraft can be used as it comes without much configuration," he said.

Second, the Saab official said that the cost of each fully integrated Swordfish can come at two thirds of that of the Poseidon or be lowered to half of it, when maintenance costs over their lifecycle is taken into consideration.

This means that Korea can get up to eight Swordfishes for the price of three or four Poseidons. Obviously, the Swedish argument goes that Korea, surrounded by sea on three sides, should have as many as possible, meaning more eyes in the air to watch for North Korean submarines with ballistic missiles on board, the very reason Korea has sped up the program.

Third, Hjelmberg offers a more generous package of "offset" programs whether in terms of subcontracting or technology transfers. He said that Saab can help Korea building its own indigenous fighter, which should have come before Korea's decision to purchase Lockheed Martin's F-35 joint strike fighters.

"Fifty percent," the Saab official said, referring to the ratio of the contract price that returns to Korea in a variety of programs as required by law. But his mood was indicative that there can be more incentives to be thrown in.

Now, it is still possible that Korea's anti-maritime aircraft acquisition program may be a virtual no-bids deal. Technically, no-bids deals can be possible when there is only one bidder after three tenders.

But if the Poseidons are sold under the U.S. government-backed foreign military sale or FMs contract, as with the F-35s, Boeing would be free from offset obligations. Poseidons were set on the FMS path but such a prospect has been dimmed.

Then, he dispelled the notion that the Swordfish is a "paper" aircraft.

"The basis for Swordfish is Globaleye, Sabb's early warning system," he said. "The Sword would be the product of the already existing system integrated on a very familiar platform."

Then, about the competition's bigger size, he said that the size doesn't matter, pointing out the cabin is cleverly configured to accommodate 100 more gravitational sonobuoys on board than the rival can.

Korea has every reason to buy American products as "alliance costs," with the Poseidons included, but it still does have to save every penny it can. If allowing the Swordfish to compete can put the pressure on Boeing, it is worth giving Saab ahe little less skewed playing ground, isn't it?

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