KAI Signs Follow-up Support Contract for T-50IQ with Iraq

Brigadier General Adil Dawood Ibrahim of the Defense Acquisition Program Administration (left) and Bae Chan-hyu, Executive Director of Export Business Operations at KAI. (Photo by KAI)

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] Korea Aerospace Industries (KAI) has signed a contract with the Iraqi Air Force for the T-50IQ CLS (Contractor Logistics Support) and training project.

On the 8th, KAI announced through a public disclosure that the contract size amounts to 426.7 billion KRW, which corresponds to 15.1% of last year's sales, and the project is scheduled to proceed until 2024.

Through this project, KAI will provide maintenance, logistics support, and logistics management programs for the T-50IQ operated by the Iraqi Air Force, as well as support education and training for new pilots and maintenance personnel.

KAI signed an export contract for 24 T-50IQ aircraft with Iraq in December 2013 and completed the delivery of the aircraft. This contract is the first follow-up operational support project signed with an overseas customer. The company explained that this is expected to be an opportunity for KAI's export business, which has been focused on aircraft exports, to expand into the high value-added service sector.

A KAI official said, "Aircraft are typically operated for more than 30 years, and if the entire aircraft lifecycle is considered as 100, development and mass production account for 30 to 40, while follow-up operational support forms a larger market of 60 to 70."

KAI plans to expand follow-up operational support services to other export target countries and commercialize the business in earnest, starting with this contract.

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