Korean aircraft manufacturer KAI has lost a multibillion dollar contract to build next-generation training aircraft for the US Air Force, thwarting its plans to expand exports, the company said Friday.
With hopes to win the lucrative project, KAI had formed a consortium with the US’ Lockheed Martin to replace 350 units of the aging T-38 jets.
The local stock market instantly reacted, with KAI’s shares sliding 28.5 percent to 35,750 won ($32.30) per share compared to the previous day’s close as of 1:54 p.m.
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KAI`s T-50A (Yonhap) |
“In partnership with Lockheed Martin, we participated in the bid with a strategic price, but were turned down due to Boeing’s low bid,” KAI said in a statement.
KAI had pitched to supply the T-50A, an improved version of the training aircraft T-50 used by South Korea’s Air Force. Flight demonstrations for the T-50A took place at Donaldson Center Airport in South Carolina.
If it landed the contract, KAI projected it would rack up 100 trillion won, including increased exports of roughly 50 trillion won and 33 trillion for 650 training jets for the US Marine Corps in 2025.
By Kim Bo-gyung (
lisakim425@heraldcorp.com)
