Initial round of negotiations to open this week, but contenders fear schedule could slip despite ministry assurances
AgustaWestland, Bell Helicopter and Eurocopter submitted bids at the end of last month to assist Korea Aerospace Industries (KAI) in developing a new 6,800kg (15,000lb) utility helicopter.
KAI plans to hold an initial round of negotiations with the three companies this week, hold a second round of talks with two shortlisted companies in late September and recommend a winner to the Korea Helicopter Programme (KHP) office by the end of September. The defence ministry plans to select a foreign partner in early October and launch the development programme in December. However, the manufacturers believe the schedule could slip by several months despite assurances from the ministry that it has already secured presidential approval for the project and the programme will go forward this year.
The South Korean army plans to acquire over 200 helicopters to replace its Bell UH-1s and MD Helicopter MD500s. Seoul seeks a new design, but the proposals submitted on 29 July do not fully comply with this requirement. Industry sources suggest an indigenous design is not feasible given the programme’s current schedule and budget.
Sources say all three proposals exceed the programme’s budget and South Korea is hoping to convince the manufacturers to lower their prices during forthcoming negotiations.
Bell’s proposal is believed to be the least compliant because the manufacturer is unable to guarantee the transfer of US government-controlled technology. The AgustaWestland and Eurocopter proposals are believed to offer the technology transfer and financing South Korea seeks. AgustaWestland’s offer is based on the new A149, a proposed military version of the Bell/Agusta AB139, which the company is prepared to launch if it can secure a large commitment from South Korea, Australia or other potential buyers.
Boeing and Sikorsky, which submitted proposals last year for the earlier Korea Multirole Helicopter (KHP) programme, decided against bidding for KHP because it did not present a viable business case (Flight International, 14-20 June).
BRENDAN SOBIE/SINGAPORE
Source: Flight International
