Selected as the First Export Aircraft PBL Contractor for the Philippine Military
270 Billion KRW Contract Over One Year, Additional Agreements Underway
Securing a Foothold to Enter the 'Aftermarket'
Korean defense industry is expanding its scope from weapon system exports to maintenance and repair businesses. Korea Aerospace Industries (KAI) was selected as the PBL (Performance Based Logistics) service provider for the FA-50PH aircraft operated by the Philippine Air Force during the international defense exhibition ‘ADAS 2024’ held in Manila, Philippines. This is the first time Korea has taken on a PBL project for aircraft exported overseas.
Kang Gu-young, President of Korea Aerospace Industries (KAI), is giving an interview at the KAI booth inside the 'ADAS 2024' exhibition hall on the 26th. (Photo by Ministry of National Defense Joint Press Corps)
The scale of this project is approximately 27 billion KRW for one year. As the manufacturer, KAI will perform maintenance, parts requirement estimation, inventory management, and technical support for the operation of the 12 FA-50PH aircraft owned by the Philippine Air Force. After a one-year pilot project to prove its performance, KAI plans to pursue additional contracts. According to KAI, aircraft that are typically operated for more than 30 to 40 years incur follow-up support costs that are 2 to 5 times higher than the purchase cost.
Mario Mendoza, Lieutenant Colonel of the Philippine Air Force and an FA-50 pilot who led the PBL contract process, evaluated, "We believe this will have a significant impact on successfully carrying out the missions required by the Philippine military."
KAI President Kang Gu-young said, "Stable PBL follow-up support can enhance combat power and reduce operating costs, creating a ‘win-win model’ for both customers and companies. This has provided a great opportunity to enter the vast aftermarket market."
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