Korea Aerospace Industries wins $1.22 billion contract

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Korea Aerospace Industries wins $1.22 billion contract

Korean aerospace company Korea Aerospace Industries (KAI) said yesterday it has won a $1.22 billion contract to exclusively supply wing parts to Europe’s Airbus SAS.

The contract, signed in France late Monday, calls for the building of wing bottom panels for the very popular A320 passenger jets and marks the single largest civilian aircraft components deal won by a local company.

KAI said it will supply the panels for the duration of the aircraft’s production that may extend to 2025, with the first delivery to be made in 2014.

The company said if Airbus decides to extend A320 production until 2030, the contract will grow to around $1.7 billion.

There are currently 4,000 twin-engine A320 series planes in operation with 200 airlines around the world and outstanding orders exceeding 7,000 planes.

Annual production of short- and medium-haul planes that seat between 124-175 passengers could reach around 500 per year.

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