S. Korean aerospace firm loses UAE military jet trainer bid

(ATTN: UPDATES with more details in paras 4-7; ADDS with new information, comments
from para 8)
By Lee Joon-seung
SEOUL, Feb. 26 (Yonhap) -- South Korea's sole aerospace company failed to win a
contract to supply next-generation military jet trainers to the United Arab
Emirates (UAE), the government said Thursday.

The Ministry of Knowledge Economy said the T-50, made by Korea Aerospace
Industries Ltd. (KAI), lost out to the M-346, made by Italy's Alenia Aermacchi.
The UAE contract, estimated to be worth US$1.27 billion, calls for the building
of 48 jets for the Middle Eastern country.
The T-50 made its maiden flight in August 2002, with the initial batch of 25
production aircraft delivered to the South Korean Air Force last year. It is
currently the only modern supersonic military jet trainer in the world.
Seoul has been pitching to sell the jet since 2005, but both government officials
and KAI said that the Italian company had pulled ahead in recent months despite
efforts by President Lee Myung-bak and National Assembly Speaker Kim Hyong-o.
"Italy's Alenia Aermacchi may have pledged a substantial support package to help
the UAE build up its nascent aerospace industry, which KAI just could not match,"
said Chung Jae-hoon, head of the ministry's core industry bureau.
He did not elaborate, but said Italy's close ties to the Middle East and past
military dealings that span decades gave the M-346 the winning edge.
Chung added that since the performance of the South Korean jet has been properly
tested and highly rated by experts, the T-50 will take part in similar future
bids that could give a boost to the local arms industry.
South Korea's total arms exports topped $1 billion for the first time last year.
The country, which started selling ammunition, small arms and uniforms, currently
markets armored personnel carriers, tanks, self-propelled howitzers,
propeller-driven basic trainers and various warships.
KAI, located in Sacheon, 437 kilometers southeast of Seoul, meanwhile, claimed
that its jet, although more expensive than the M-346, outperformed its rival in
most respects and is ideally suited to meet the requirements of Air Forces
needing an advanced trainer that can be used as a light attack and air defense
aircraft.
"The UAE looked at both performance and other factors and it was the latter that
decided the outcome of the bid since most pilots are impressed with the South
Korean jet," an executive who wished to remain anonymous said.
He said that while Wednesday's announcement, made in Abu Dhabi, was a
disappointment, the T-50 will be marketed to other countries that have a need for
hightech trainers.
The company did not elaborate but said Singapore is looking for an advanced jet,
while talks are underway with countries like Poland.
yonngong@yna.co.kr
(END)