KF-X Project
Partnering with Europe's Airbus Defense and Space, Korean Air will bid to begin a Korea-built fighter (KF-X) development project on the scale of 18 trillion won (US$16.29 billion) to build new fighter aircraft for South Korea.
Korean Air recently announced a rebid for the KF-X project, signing an MOU with Airbus D&S, a manufacturer of Euro Fighter.
Accordingly, Korean Air will compete with a Korea Aerospace Industries (KAI) and Lockheed Martin consortium in order to win the KF-X project. The purpose of the project is to manufacture 120 home-built advanced fighter jets to be superior to KF-16 Korean air force fighters by 2020.
The industry says that the KAI-Lockheed Martin consortium is ahead in technology, since it has experience developing the T-50 Korean advanced trainer jet, the FA-50, a Korean light attack aircraft, and a Korean helicopter, the Surion.
However, considering technology transfers and an ability to invest, Korean Air is out-pacing the KAI-Lockheed Martin consortium. Therefore, it is difficult to predict the result. Lockheed Martin is highly likely to be restricted from technology transfers by the U.S. government.
On the other hand, as Europe is more active in technology transfers, it is said that Korean Air will have an advantage via its Airbus relationship.