Boeing wins S. Korean fighter deal


The F-15K line has only been kept open by a tiny order for 10 of the fighters by the Pentagon

Staff and wires

SEOUL, South Korea -- Aerospace giant Boeing Co. has won a controversial $4.5 billion contract to build fighter jets for South Korea's air force -- prompting complaints and the threat of legal action from rival bidder Dassault Aviation.

The American company beat French firm Dassault's Rafale jet to build and supply 40 F-15K aircraft by 2009, South Korea's Defense Ministry said on Friday.

Boeing prevailed in the bidding because of South Korea's close military alliance with the United States, the Associated Press quoted South Korean military officials as saying.

"We are honored that the F-15K was selected, and excited that we will be able to expand our long-standing relationship with the Republic of Korea," said Boeing Chairman and Chief Executive Officer Phil Condit in a statement on Boeing's Web site.

"Our best people and strongest efforts will help ensure a successful program for the Korean people."

However, reports said that the Rafale outperformed the F-15K in combat capabilities, drawing claims from Dassault accusing the defense ministry of using the bid as a "lifesaver for the U.S. competitor," the Associated Press reported.

Dassault had asked the fighter competition to be frozen by a South Korean court with a rukling on the case expected later this week.

"The decision is not fair," Yves Robins, Dassault's vice-president of international relations, was quoted by the Associated Press as saying.

"We will proceed with our legal action."

Allegations

FACTBOX

Details of the contract

CNN.com Asia

More news from our
Asia edition

A small group of activists led a demonstration outside the defense ministry calling for the government to nullify the decision.

Allegations of bribery, industrial espionage and favoritism during the bidding process have dominated South Korean media.

Other planes in the running were the Russian Sukhoi Su-35 and the Eurofighter Typhoon which were both eliminated last month in the first round of the competition.

Boeing and Dassault then squared off in the second round, which allowed for political and economic considerations.

The ministry has not disclosed which plane it considered the best at combat capabilities but found that the Su-35 was the cheapest to buy and maintain.

The contract allows Boeing – which last year lost out on the biggest defense contract in history – to keep its F-15K fighter line open.

Lockheed Martin Corp won the $200 billion Joint Strike Fighter contract last October. The JSF is planned to replace nearly all fighter jets currently in use, involving as many as 3,000 JSFs over four decades.

The F-15K line has been kept open only be a tiny order from the Pentagon for 10 of the jets.

General Electric

U.S. firm General Electric was another big winner in the South Korean deal, prevailing to build the engines for the fighters.

Boeing will also hand over $880 million worth of technology and supply South Korean aircraft parts companies with $2 billion worth of deals under the terms of the contract.

Almost 40,000 U.S. military personnel are stationed in South Korea – a legacy of the 1950-53 Korean War.

The F-15K is an advanced derivative of the U.S. Air Force F-15E, which Boeing says is the world's most capable long-range, multi-role fighter.

It is billed as virtually an all-weather fighter capable of performing air-to-ground and air-to-air missions during the day or night. Its maximum payload is 23,000 pounds (10,433 kg) and has a top speed of Mach 2.5.