The South Korean government has prohibited the country’s airlines from setting up low-cost joint venture operations with foreign carriers. This week’s order from the Ministry of Land, Infrastructure and Transport (MLIT) came in response to demands by some local low-cost carriers (LCCs) that the domestic market deserves protection from foreign-backed competition.
Rising military tension in north Asia sparked by China’s escalating defense spending and erratic posturing by North Korea is driving growth in Honeywell’s defense business. The need to maintain operational availability for the large installed base of U.S.-made aircraft operated by Japan, South Korea and Taiwan is spurring strong demand for spares and product support, according to Mark Burgess, senior director with Honeywell Aerospace Asia Pacific (Booth 23, Chalet CS42).
The U.S. has made a formal offer to Korea of four Northrop Grumman RQ-4 Global Hawk Block 30 UAVs, in a package valued at $1.2 billion. The notification to Congress states, “The Republic of Korea needs this intelligence and surveillance capability to assume primary responsibility for intelligence-gathering from the U.S.-led Combined Forces Command in 2015.” The U.S. Air Force currently flies the high-altitude mission over and around the Korean peninsula using three Lockheed Martin U-2s based at Osan Airbase.
Despite its recent successes, GKN hasn’t had everything its own way. In December 2011, it lost out to Korea Aerospace Industries for some wing structures work for Airbus A320s. According to then Airbus chief executive Thomas Enders, the European airframer opted to send the work to Korea for “purely competitive reasons,” and, in January, he stated that “GKN did not make the upmost effort to come up with a competitive offer.”
Ongoing major requirements and a growing defense budget in the Republic of Korea prompted a big showing by major aerospace companies from Europe and Israel, as well as the U.S., at the Seoul Air Show in mid-October. Show organizers claimed that nearly two-thirds of the 313 exhibitors were from 30 foreign countries.
Korea Aerospace Industries (KAI) is courting outside manufacturers to participate in its KF-X stealth fighter program. This program is expected to produce more than 120 aircraft for South Korea’s air force, and may be offered as an export to interested countries. The program’s total cost could reach $8 billion, which is causing the government of South Korea to hesitate in giving its approval.
Sikorsky Aerospace Services has opened a regional parts stocking facility with Times Aerospace Korea at Gimpo Aerospace Industrial Complex in Gimpo City, Gyongg-Do, South Korea.
Times Aerospace Korea built the complex near Incheon and Gimpo International Airports with the purpose of providing service and support facilities for the Asian aerospace industry.