CEO’s Determination

Ha Sung-yong, president of Korea Aerospace Industries Ltd (KAI).
Ha Sung-yong, president of Korea Aerospace Industries Ltd (KAI).

 

Ha Sung-yong, president and CEO of Korea Aerospace Industries Ltd (KAI), has suggested that he would step down if KAI failed to win the T-X project of the United States Air Force to buy advanced jet trainers.

According to industry sources, he said, “I submit my resignation first in order to confirm my determination that I will step down when KAI fails to win the contract of the T-X project in the presence of 39 executives attending an executive strategy meeting held at LIG’s Sacheon Training Institute in Gyeongnam Province, adding “I hope all of you will join me to hand in a resignation en bloc.”

Those gestures by president Ha and other executives are a manifestation of their resolution that they will win the project at any cost. The T-X project is to replace about 1,000 jet trainers used in US Air and Naval forces at minimum US$ 20 billion. The US government is planing to give public notice of a bid within this year and select the model of jet trainers next year.

The T-X project is a mega project beyond the KFX (Korean Fighter Experimental) that KAI has been carrying out. KAI has strived to win the project in partnership with US-based Lockheed Martin. The South Korean aerospace company is expecting that the selection of T-50A, the US version of advanced jet trainer T-50, could have approximately 100 trillion won ripple effect on related industries.

CEO Ha’s determination has something to do with the situation that Lockheed Martin has recently made a clean sweep of contracts in the US. As Lockheed Martin has made such outstanding results in obtaining orders, there is speculation that the US government could give favors to Boeing and Northrop. Boeing is challenging the bid for the T-X project by building a consortium with Swedish firm Saab, while Northrop is trying to obtain the deal through a consortium with British aerospace company BAE.

 

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