Contract Signed for Three Types of Domestic Aircraft
Five-Year Deal Worth 800 Billion Won
Korea Aerospace Industries (KAI) has signed a Performance-Based Logistics (PBL) contract with the Defense Acquisition Program Administration for the KUH-1, T-50, and KT-1 series aircraft. Performance-Based Logistics is a military support system in which the manufacturer is solely responsible for follow-up logistical support of weapon systems that have been deployed, and incentives or penalties are applied based on performance indicators such as aircraft operational availability.
This contract covers three types of domestically produced aircraft: the KUH-1 series operated by the Korean Army, and the T-50 and KT-1 series operated by the Air Force. The total contract value is 803.7 billion won, and the period is five years, until 2030.
With this contract, KAI has achieved 1 trillion won in follow-up logistics support orders this year. Based on this experience, the company plans to continue expanding its PBL business and foster it as a core business area.
Park Kyungeun, Head of the CS Division at KAI, stated, "We will mobilize all of KAI's follow-up support capabilities to provide optimal support so that the aircraft operated by the Korean Army and Air Force can perform at their best."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.


