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By Jun Ji-hye
Korea Aerospace Industries (KAI) is seeking to develop civilian and military helicopters by 2020 and 2022, respectively, in cooperation with Airbus Helicopter (AH), the nation's sole aircraft maker said Thursday.
"KAI signed a contract with the Defense Acquisition Program Administration (DAPA) to develop Light Armed Helicopter (LAH), and with the Ministry of Commerce, Industry and Energy to develop Light Civil Helicopter (LCH)," the company said in a press release.
The project, where a total of 1.6 trillion won ($1.4 billion) will be invested, aims to develop the LAH based on the LCH to replace the aging 500MD and AH-1S military choppers.
The firm said the simultaneous development of the military and civilian helicopters will have a number of merits, such as high efficiency in the development process and an easy technology transfer between military and civilian sectors.
"The project is also expected to have an economic effect worth 23 trillion won as well as helping to create jobs for 110,000 people," the company said.
Since being chosen as the preferred bidder in July last year, KAI has conducted marathon negotiations with the DAPA and other relevant agencies to iron out various issues such as cost.
Under the agreed deal, the DAPA and the industry ministry will shoulder 650 billion won and 350 billion won, respectively, while KAI will front 200 billion won and AH 400 billion won.
KAI signed an agreement with AH in March to receive technical assistance from the European company. KAI will develop the LCH and LAH based on AH's H155 (EC155) platform in an effort to secure stability and performance at an early stage of development.
After the LAH and LCH development is completed, the two firms will carry out marketing activities together, while KAI will exclusively produce the choppers, in accordance with the contract. Airbus Helicopter promised to stop producing the similar class H155 after the project is completed.
"Our goal is to sell over 400 LAHs and LCHs in the domestic market and export over 600," KAI said.
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