SEOUL, February 9 (AJP) - South Korea has signed a deal with the Philippines to provide support and maintenance services for fighter jets, Korea Aerospace Industries (KAI) said on Monday.
Under the performance-based logistics (PBL) deal, worth about 101.4 billion Korean won (about US$70 million), which runs through 2028, KAI will provide maintenance and logistics support for its FA-50 fighter jets supplied to the Philippines.
The three-year deal comes as an initial one-year pilot contract worth 27 billion won in December 2024 delivered stable operating results.
The latest deal also reflects long-term trust between the two countries after KAI's previous contracts in 2010 for the South Korean Air Force's T-50 trainer planes and Surion transport utility helicopters.
The Philippines is a major client for the FA-50. The country first purchased a dozen FA-50PH aircraft in 2014 and acquired an additional 12 last year, building a close relationship with South Korea over about 10 years through follow-up services and logistics support.
KAI said maintenance and support services are crucial because they can generate two to five times the revenue of initial aircraft sales, making them a key part of its growth strategy.
Park Kyung-eun, a KAI executive, said, "We will work hard to provide optimized support and services tailored to each client and country to sustain exports of home-grown aircraft while expanding markets and maintaining competitiveness in the global aerospace and defense market."
Under the performance-based logistics (PBL) deal, worth about 101.4 billion Korean won (about US$70 million), which runs through 2028, KAI will provide maintenance and logistics support for its FA-50 fighter jets supplied to the Philippines.
The three-year deal comes as an initial one-year pilot contract worth 27 billion won in December 2024 delivered stable operating results.
The latest deal also reflects long-term trust between the two countries after KAI's previous contracts in 2010 for the South Korean Air Force's T-50 trainer planes and Surion transport utility helicopters.
The Philippines is a major client for the FA-50. The country first purchased a dozen FA-50PH aircraft in 2014 and acquired an additional 12 last year, building a close relationship with South Korea over about 10 years through follow-up services and logistics support.
KAI said maintenance and support services are crucial because they can generate two to five times the revenue of initial aircraft sales, making them a key part of its growth strategy.
Park Kyung-eun, a KAI executive, said, "We will work hard to provide optimized support and services tailored to each client and country to sustain exports of home-grown aircraft while expanding markets and maintaining competitiveness in the global aerospace and defense market."
Copyright ⓒ Aju Press All rights reserved.
