Seoul has delayed its selection of an airborne early warning and control (AEW&C) aircraft until early 2005, as negotiations with two potential vendors drag on. Industry sources say negotiating teams from Boeing and Israel Aircraft Industries (IAI) are still trying to hammer out contracts with South Korea, which hopes to conclude negotiations by year-end and announce a winner in February or March.
Negotiations for a four-aircraft AEW&C purchase began three months ago and evaluation of the two shortlisted aircraft took place in September. Boeing is offering a 737-based solution using Northrop Grumman's Mesa radar, while IAI is teamed with Gulfstream and L-3 Communications in a proposal for a G550 business jet-based solution using Elta Systems' Phalcon radar.
South Korea negotiates contracts including offsets with all shortlisted vendors for most procurements, before asking for a final round of price bidding.
Source: Flight International
