Andrzej Jeziorski/PARIS
Creditors of the three South Korean aerospace companies planning to merge into a single operation this year have rejected a second business plan.
According to Lim In-Taik, president of Korea Aerospace Industries (KAI) - the entity being formed by Samsung Aerospace, Daewoo Heavy Industries and Hyundai Space & Aircraft - the Corporate Restructuring Committee (CRC) representing the creditor banks felt that the plan was too heavily weighted in favour of military programmes. A previous version was rejected this year.
Lim says the major programmes in KAI's business plan are based on the "mid- to long-term plan of the military", and that the KAI partners have full confidence in these programmes. "I think the concern [of the CRC] is 'what if the government has inconsistent policies?' We have taken the advice seriously and will revisit this," he says.
Some of the international companies bidding for selection as foreign direct investors (FDIs) in the merger feel that the current business plan is weighted in favour of Lockheed Martin. Two of the key programmes in the plan are the Samsung KTX-2 - a joint development with the US company - and the continued licence production by Samsung of F-16C/Ds.
Lockheed Martin has responded to the concerns over military bias by teaming for a joint bid with France's Aerospatiale Matra, signing a memorandum of understanding (MoU).
FDI candidates include British Aerospace, GEC and DaimlerChrysler Aerospace (Dasa), as well as Aerospatiale Matra and Lockheed Martin. All of the companies have signed MoUs on taking a stake of up to 30% in the merged entity.
An essential longer-term element of the business plan is KAI involvement in the production of the new generation F-X fighter for the South Korean air force. A request for proposals (RFP) on this programme has been released to Boeing, Dassault, Eurofighter and Sukhoi - offering the F-15, Rafale, Typhoon and Su-30 fighters.
Lockheed Martin has not received an RFP because its F-16 Block 50-plus does not meet South Korea's requirement for a twin-engined aircraft.
Sources close to the programme say the US company is hoping that South Korea will delay its F-X decision until the US Government permits export sales of the F-22. The air force is looking at a purchase of 40 F-X fighters, to be in-service by 2007. A selection decision is expected in 2000.
Source: Flight International
