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| KC-30A (A330 MRTT) of the Royal Australian Air Force |
Competition for Seoul’s project to procure four aerial tankers is heating up as contenders highlight the ways they can help enhance South Korea’s air defense with several months to go until the announcement of the winner. Boeing’s KC-46, Airbus’ A330 MRTT and Israel Aerospace Industries’ B767 MMTT have been vying to clinch the deal worth 1.4 trillion won ($1.25 billion) since Seoul gave public notice of its plan in March to introduce four tankers between 2017 and 2019.
Seoul initially planned to announce the winner next month. But its decision is expected to be delayed to early next year as negotiations are likely to be prolonged due to the bidders’ failure to meet the requirements Seoul proposed as part of the offset agreements.
“We are nearing the tail end of our price negotiations. But the competitors’ proposals regarding the offset agreements are yet to satisfy our targets. Thus, there may be a delay in choosing the winner,” an official of the Defense Acquisition Program Administration said, declining to be named.
"But we are trying our best now in consideration of our best national interests. We may need at least one or two more months to finish negotiations."
In the defense sector, offset agreements usually involve technology transfer and other support programs.
Read the full story at Air Recognition