South Korea closes in on T-50 export deal with Indonesia

[Lankan Ranger]

South Korea closes in on T-50 export deal with Indonesia

Indonesia has selected Korea Aerospace Industries as the preferred bidder for its 16-aircraft advanced jet trainer requirement, paving the way for the first export sale of the T-50 Golden Eagle.

KAI received a letter from the Indonesian government on 12 April informing it of the decision, says an industry source. The source understands that preferred bidder status means that Indonesia will conduct commercial negotiations exclusively with KAI. These are likely to take between three and four months to finalise, the source adds.

Indonesia also desires industrial co-operation on the project.

The news represents an important win for the T-50, which has previously lost competitions to the Alenia Aermacchi M-346 in the United Arab Emirates and Singapore.

An alleged spying incident at a Seoul hotel in January appeared to have threatened the Indonesia T-50 deal. A member of an Indonesian defence delegation visiting South Korea returned to his room to find three individuals looking at his laptop computer. The individuals fled and their identities were never determined.

The incident received wide publicity in the South Korean and Indonesian press, although the governments in Seoul and Jakarta played down its importance.

According to media reports in South Korea, Seoul told Jakarta that if it chose the T-50, then it would consider buying more Indonesian Aerospace-built CN-235 transport aircraft. The South Korean air force and coastguard already operate the type.

The other contenders in the competition to replace Indonesia's BAE Systems Hawk 53s were the Aero Vodochody L-159 and Yakovlev Yak-130. An Indonesian air force delegation visited South Korea in April 2010 to test-fly the nation's air force T-50s.

Jakarta's T-50 decision follows other efforts to upgrade the nation's air force. In November 2010 it purchased eight Embraer EMB-314 Super Tucano light attack aircraft to replace Vietnam War-era Rockwell OV-10 Broncos. Then in January 2011 it awarded Arinc Engineering Services a $66.7 million contract to modernise five of its Lockheed Martin C-130B transports.

Indonesia is also considering upgrading its 10 Lockheed Martin F-16A/B fighters. Media reports have also said that the nation will buy 24 ex-US Air Force F-16s, but this has not been officially announced by either Washington or Jakarta.

KAI closes in on T-50 export deal with Indonesia

 

[Luftwaffe]

So what'll be the fate of Hawks in Indonesian Air Force, are they going to be upgraded as well?
Or F-5 replacements are these KAI T-50, I would like to see all 15 F-5s be replacement by KAI T-50 in a dual role configuration. It is time old timers get s retired for good.

 

[ejaz007]

Indonesia To Buy 16 Korean T-50 Trainers
By JUNG SUNG-KI
Published: 26 May 2011 11:40

SEOUL - Korea Aerospace Industries (KAI) signed a $400 million deal to sell 16 T-50 Golden Eagle supersonic trainer aircraft to Indonesia, marking the first overseas sale of the $20 million jet co-developed by Lockheed Martin under a 2006 deal.

The deal obligates South Korea to buy Indonesian-built CN-235 transport airplanes, Seoul and Jakarta government officials confirmed.

Officials with KAI and the Defense Acquisition Program Administration (DAPA) officials had denied that the trainer deal would require the airlifter purchase.

The contract was signed May 25, about a month and a half after Jakarta picked KAI as the preferred bidder for its trainer jet acquisition. The T-50 beat out Russia's Yak-130 and the Czech L-159B.

KAI is set to deliver the jets to the Indonesian Air Force by 2013.

The day after the T-50 announcement, KAI received approval from the Korea Exchange to proceed with an initial public offering (IPO) estimated to be worth about 576 billion won ($523 million).

The state-owned Korea Finance Corp. owns 30.1 percent of the aircraft maker, while Samsung Techwin, Hyundai Motor and Doosan Infracore hold 20.5 percent apiece.

The IPO may be held by the end of June.

Industry and securities sources expect KAI to sell 36 million shares at 14,000 won to 16,000 apiece.

"I'm very happy that the deal has been concluded before the planned IPO," said KAI President Kim Hong-kyung. "This Indonesia deal is just the starting point for the country's aircraft exports. As the leading aerospace company in South Korea, we will make best efforts to help the country become the world's top seven aircraft exporters by 2020."

South Korea will become the sixth country to export supersonic jets, following the U.S., Russia, the U.K., France and Sweden, according to a KAI-DAPA news release.

The single-engine T-50 plane has digital flight controls and a modern, ground-based training system. It is designed to have the maneuverability, endurance and systems to prepare pilots to fly next-generation aircraft such as the Eurofighter Typhoon, the F-22 Raptor and the F-35 Lightning II. The jet has a top speed of Mach 1.4 and an operational range of 1,851 kilometers.

The news of the offset provision confirmed what Amir Sambodo, special staff for the Indonesian Coordinating Economic Minister told the Jakarta Post on May 20: "There have been talks that if Indonesia buys T-50s, there will be compensation for Korea to purchase CN-235s."

Sambodo said South Korea would buy two or four more CN-235s.

"This needs to be increased to mutually benefit both countries. If South Korea is good at trainer jets, we are strong in transport aircraft," he said.

Seoul and Jakarta had a similar barter trade deal in 2001, when South Korea bought eight CN-235 transport planes in return for selling 12 KT-1 Woongbi basic trainers.

The CN-235 is a medium-range twin-turboprop airplane, jointly developed by Spain's CASA and Indonesia's PT DI. The plane is used for VIP transport, maritime patrols, airlifts and troop carrying.

South Korea has 20 CN-235s, 12 built in Spain and eight in Indonesia.

Indonesia To Buy 16 Korean T-50 Trainers - Defense News