Ahead of the Ministry of Defense decision on the Air Force's new jet trainer, a senior executive from Korean Aerospace Industries Ltd. has come to Israel to try to persuade Israeli officials to pick the company's T-50 Golden Eagle. Israel is considering either the T-50 or the M-346 jet made by Italy's Alenia Aermacchi.
In the past few months, the Air Force has tested the performance of both jets, and senior Air Force officers say that both jets meet the training needs of pilot cadets. The planes will be purchased by a joint venture set up by Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) and Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1), which will sell the Air Force flight time. The training jet that will be chosen will replace the Air Force's obsolete A-4 Skyhawks.
At a meeting with correspondents in Tel Aviv today, the Korean Aerospace executive in charge of the T-50 program in Israel, Song Choi, said that, irrespective of the pending deal, Korean Aerospace had bought many components from Israeli defense companies, amounting to about $400 million. Most of the items were advanced avionics from Elbit Systems, electronic warfare systems from Elbit Systems subsidiary Elisra Group, and advanced radars for its aircraft from Elbit Systems subsidiary Elta.
Song expects that, in view of South Korea's developing aerospace industry, procurements from Israeli defense companies will expand in the coming years. He predicts that the figure could reach $800 million.
Components that Korean Aerospace plans to buy in Israel will be integrated with various models of the T-50, including the attack version, which will be delivered to the Republic of Korea Air Force beginning at the end of the year. This is in addition to systems that will be installed in 200 helicopters that the company is manufacturing for the Korean Air Force.
Korean Aerospace is producing the T-50 jointly with Lockheed Martin Corporation (NYSE: LMT).
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2011
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