Boeing Awarded Large Maintenance Contract for ROK F-15

by: Matthew Potter
February 24, 2012

Category: Boeing, Business Line, Companies, Contract Awards, Countries, Events, logistics, Military Aviation, South Korea | RSS 2.0

One of the reasons that the Indian, Brazil and U.A.E. new fighter contracts are being so hard fought among the various U.S. and European defense contractors is not only the size of the initial procurement but also because they offer long term requirements and revenue.

India has so far chosen the Rafale fighter from Dassault although there are reports that Eurofighter with the encouragement of the U.K. government is trying to offer a better price in the hope of winning that contract. Brazil is considering the Rafale and Boeing’s (BA) F/A-18 and the U.A.E. seemed committed to the French aircraft but at the Dubai airshow earlier this year seemed to have second thoughts.

South Korea chose to buy some F-15 fighters from Boeing (BA) last decade. This was a significant procurement for the company as the U.S. had stopped buying the aircraft concentrating on the F-22 and JSF. Now they have signed a contract for long term logistics support for the advanced fighters and strike aircraft. This is worth about $300 million and last five years.

Korea can be expected to use the aircraft for a few decades and Boeing along with its Korean partners should consistently receive contracts to support the systems. Often as the U.S. has demonstrated the long term support, modernization and modification of aircraft can easily cost more then the initial purchase price. Often this goes to the OEM so they have several years of revenue after production is complete. With overseas contracts the chances are even higher that this kind of work will be needed.

Modern combat aircraft are now having service lives measured in decades. The B-52 for example is approaching its 60th year of service. The U.S. F-15 over 30 and so on. Boeing can expect South Korea to pay a great deal of money for their support as time passes.

Photo from Bundeswehr-Fotos Wir.Dienen.Deutschland.’s flickr photostream.

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