[Yang Nak-gyu's Defence Club] If Lockheed Martin Buys More F-35s, Will Maintenance Rights Also Be Granted?
[Asia Economy Yang Nak-gyu, Military Specialist Reporter] As the project to additionally procure 20 advanced stealth fighter jets F-35A (F-X Phase 2 project), which was delayed during the Moon Jae-in administration, is being promoted, attention is focused on how much more of the F-35A parts maintenance business South Korea will secure. Lockheed Martin, the U.S. company that produces the F-35A, cannot handle all maintenance and thus entrusts parts maintenance to the countries operating the F-35A.
Recently, the military reviewed and approved the basic strategy plan for promoting the next-generation fighter (F-X) Phase 2 project. The basic strategy plan involves investing about 3.9 trillion KRW from 2023 through the mid-to-late 2020s to additionally procure high-performance fighter jets.
The F-X Phase 2 project was effectively halted under the previous government. Although preliminary research and requirements verification were conducted between 2018 and 2019, the project was postponed in 2020 to prioritize the carrier-based aircraft project for the light aircraft carrier. At that time, the F-35B, a vertical takeoff and landing stealth fighter, was strongly considered as the carrier-based aircraft, but it was known to be several hundred million KRW more expensive per unit than the F-35A, sparking debates over cost-effectiveness.
With the promotion of the F-X Phase 2 project, the question arises as to how much of the F-35A parts maintenance South Korea can handle. Since the U.S. government is expected to send a Request for Proposal (RFA) for F-35A parts supply in the first half of this year, interest in the volume of contracts is growing.
The U.S. government, as the number of F-35A operating countries expands beyond the U.S. to Japan, Australia, and some European countries, has found it difficult for Lockheed Martin, the manufacturer of the F-35A, to handle all maintenance. Therefore, it divides the regions into Asia-Pacific, Europe, and North America, selecting operators in each region to perform their own maintenance. This is the Performance-Based Logistics (PBL) model.
The U.S. Department of Defense plans to select operating country companies for about 700 F-35A components in three stages. The overhaul of airframes and engines was already decided in December 2014 for Australia and Japan. This means that for the overhaul of the F-35s owned by the Republic of Korea Air Force, it is inevitable to entrust Australia or Japan.
During the ‘Phase 1 regional maintenance company’ selection conducted in 2016 for 65 parts across 11 fields, Korean companies were represented by a consortium led by Korean Air, which was selected as the maintenance company for one part (ejection seat). The ejection seats used in F-35s by other countries are all manufactured by Korean Air, supplied to Lockheed Martin, and then distributed by Lockheed Martin to each country.
For the ‘Phase 2 regional maintenance company selection,’ targeting 398 parts across 17 fields of F-35A components, the Korean defense industry consortium ‘Team ROK’ was assigned maintenance for parts in three fields: avionics, mechanical and electromechanical, and ejection. Team ROK is a consortium consisting of Hanwha Systems, Hanwha Machinery, Hanwha Techwin, Korean Air, LIG Nex1, and Hyundai Glovis. This means that within about two years, the range of fields that domestic companies can maintain independently has significantly expanded.
The U.S. government plans to select companies this year according to the Request for Proposal (RFA) for the ‘Phase 3 regional maintenance company selection.’ There are more than 300 parts fields involved.
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However, some hold a skeptical view. Considering that South Korea did not participate in the joint development of the F-35A and that companies from joint development countries handle maintenance for a significant portion of the F-35A, it is uncertain how many maintenance items South Korea will secure. In fact, during the ‘Phase 1 regional maintenance company’ selection, Korean Air was selected for only one part, whereas Australia was selected for 64 items.
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