The Philippines has signed a performance-based logistics (PBL) programme with Korea Aerospace Industries (KAI) for the FA-50PH light combat aircraft.

This is the first time a PBL contract has been awarded for an aircraft exported from South Korea, says KAI.

Philippine FA-50

Source: Commonwealth of Australia

KAI says the FA-50 enjoyed excellent availability rates during the recent Pitch Black exercise in Australia

The value for the first year is W27 billion ($20 million), and covers spare parts, maintenance, inventory management, and other items required for the Philippine air force fleet of 12 FA-50PHs.

The contract covers a one-year pilot, and KAI hopes to secure multi-year contracts thereafter.

It adds that its customer support was instrumental in the successful deployment of the FA-50PH to the recent Pitch Black exercise in Australia.

The company has experience with PBL contracts through its work with the South Korean military on programmes such as the T-50 series, unmanned air vehicles, and the KUH-1 Surion utility helicopter.

The company estimates that since aircraft serve for 30-40 years, the value of follow-on support can add up to two to five times the original acquisition cost.

“Stable PBL follow-up support can be a win-win model for both customers and companies by promoting improved capabilities and reducing operating costs,” says KAI president Kang Koo-young.

He says that the Philippine contract lays the foundation for more international PBL contracts.

In August, KAI entered a memorandum of understanding with Thai Aerospace Industries related to the local support of T-50TH advanced jet trainers. It also said that it was preparing to sign a PBL contract covering the T-50TH with the Royal Thai Air Force.