Airbus has signed a memorandum of understanding with Korea Aerospace Industries (KAI) which will result in up to five risk-sharing supplier contracts on the A350.
Airbus says the MoU, completed at the show, covers A350 wing and fuselage components and is worth more than $1 billion. KAI is bidding on five separate work packages from the French, German and UK divisions of Airbus and contracts will be awarded in the middle of this year, says KAI vice president of commercial business development Seong Jong Lee.
The value of KAI’s investment in the A350 programme and the ultimate value of the contracts is still subject to negotiation, says Lee, but the $1 billion figure is based on 1,000 shipsets at $1 million each.
Lee says this is the first time KAI will be a major risk-sharing partner in a commercial aircraft programme. KAI is a supplier on several Airbus and Boeing programmes but has only a small risk-sharing role on the A380, for which it supplies the outboard wing bottom panel.
Source: Flight International