Kenko Aerospace Wins F-16 MRO Contract from Korean Air

[Asia Economy Reporter Hyunseok Yoo] Kencoa Aerospace announced on the 7th that it has secured the MRO project for the U.S. Air Force F-16 fighter jets in the Asia-Pacific region from Korean Air. The total project scale is estimated at approximately 10.6 billion KRW, and it is an annually renewed contract.

The MRO project awarded to Kencoa is part of a total 210 billion KRW contract Korean Air secured from the U.S. Department of Defense last year. Korean Air plans to extend the lifespan (flight hours) and perform overhaul maintenance (MRO) on F-16 fighter jets deployed with U.S. forces in Korea and Japan for about 10 years until September 2030.

Kencoa has been building its technical expertise and trust by conducting various overhaul maintenance (MRO) projects with Korean Air since 2017, including for UH-60 and CH-53 helicopters.

Recently, the Airbus-related cargo aircraft conversion project has been driving significant revenue growth. Additionally, the Identification Friend or Foe (IFF) replacement project and the recent F-16 project award have notably contributed to the growth in the MRO sector’s performance. Kencoa expects further business expansion as it is currently discussing additional military aircraft MRO projects with Korean Air starting from this contract.

While many aviation companies are facing difficulties due to COVID-19, Kencoa’s consecutive wins in the MRO sector are expected to translate into strong sales performance. This year, the Korean headquarters has already exceeded last year’s sales by the first half, demonstrating the fastest recovery among aviation companies.

A company representative stated, “Kencoa’s consecutive wins in the defense MRO sector prove our technical capabilities in military aircraft overhaul and passenger aircraft conversion. Having recovered our previous sales performance in the MRO sector, we plan to focus on visible achievements and external growth in future growth businesses such as UAM and space launch vehicles.”

This content was produced with the assistance of AI translation services.