Korean Air Wins Partial Victory in Patrol Aircraft Project Lawsuit Against Government, Entitled to 47.3 Billion KRW

Korean Air, which did not receive 72 billion KRW from the Defense Acquisition Program Administration (DAPA) due to delays in the P-3C maritime patrol aircraft performance improvement project, filed a civil lawsuit and won partial victory in the first trial.

The E737 Peace Eye P-3C is flying in formation.

On the 7th, the Civil Division 29 of the Seoul Central District Court (Presiding Judge Han Jeong-seok) ruled in a 72.6 billion KRW claim lawsuit filed by Korean Air against the state, ordering the state to pay Korean Air 47.34747 billion KRW plus related delay damages. The court stated that unavoidable reasons such as natural disasters or delays in government-supplied materials should be taken into account for the extended project period.

Previously, in March 2013, Korean Air won a contract worth 400 billion KRW from DAPA for the P-3C maritime patrol aircraft performance improvement project. The P-3C maritime patrol aircraft, introduced in 1995 from Lockheed Martin in the United States, uses radar to detect submarines. The project was originally planned to be completed by 2016 but was delayed by nearly four years. DAPA deducted approximately 72.6 billion KRW, including interest, from the payment to Korean Air, citing failure to fulfill the contract within the deadline, and Korean Air filed a lawsuit in 2021.

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