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Saab worries Korea will buy Boeing's anti-sub planes with no bids
The Korea Times ^ | MARCH 20, 2018 | Oh Young-jin

Posted on 03/21/2018 7:44:40 PM PDT by sukhoi-30mki

Saab's Swordfish anti-submarine patrol aircraft / Saab

Saab is in for a difficult competition in Korea.

By the lie of the land, the Swedish company may not get a chance to bid for Korea's $1.7 billion purchase deal for anti-submarine aircraft.

Even if it is allowed, it is widely seen as a spoiler for Korean buyers to use to get a better deal from an American defense contractor.

Just for that purpose ― lower cost, greater technology transfer and bigger "offset" deals for the stalling next-generation fighter program ― it looks tempting to give Saab what it wants and pit it against Boeing's Poseidon.

"Give us an open competition," said Richard Hjelmberg, head of Saab's marketing and sales, in an interview. He was a member of a delegation in Seoul from Sweden to pitch the Swordfish anti-submarine system ― a Saab system integrated on Bombardier's Global 6000.

There were three strong points for Swordfish that Hjelmberg talked about over its competition ― he was reluctant to say by name Boeing or Poseidon on the platform of the much larger B737.

First, the Bombardier's aircraft weighs roughly half of B737 so it can take off and land on the runway at the ROK Naval Base in Pohang. The Pohang runway is 7,000 feet long, more than the 6,500 feet, the Swordfish needs with a full load, but shorter than the Poseidon's required 10,000 feet. Harding the runway's surface and strengthening its foundations would additionally be needed for the latter. "With the G6000, the aircraft can be used as it comes without much configuration," he said.

Second, the Saab official said that the cost of each fully integrated Swordfish can come at two thirds of that of the Poseidon or be lowered to half of it, when maintenance costs over their lifecycle is taken into consideration.

This means that Korea can get up to eight Swordfishes for the price of three or four Poseidons. Obviously, the Swedish argument goes that Korea, surrounded by sea on three sides, should have as many as possible, meaning more eyes in the air to watch for North Korean submarines with ballistic missiles on board, the very reason Korea has sped up the program.

Third, Hjelmberg offers a more generous package of "offset" programs whether in terms of subcontracting or technology transfers. He said that Saab can help Korea building its own indigenous fighter, which should have come before Korea's decision to purchase Lockheed Martin's F-35 joint strike fighters.

"Fifty percent," the Saab official said, referring to the ratio of the contract price that returns to Korea in a variety of programs as required by law. But his mood was indicative that there can be more incentives to be thrown in.

Now, it is still possible that Korea's anti-maritime aircraft acquisition program may be a virtual no-bids deal. Technically, no-bids deals can be possible when there is only one bidder after three tenders.

But if the Poseidons are sold under the U.S. government-backed foreign military sale or FMs contract, as with the F-35s, Boeing would be free from offset obligations. Poseidons were set on the FMS path but such a prospect has been dimmed.

Then, he dispelled the notion that the Swordfish is a "paper" aircraft.

"The basis for Swordfish is Globaleye, Sabb's early warning system," he said. "The Sword would be the product of the already existing system integrated on a very familiar platform."

Then, about the competition's bigger size, he said that the size doesn't matter, pointing out the cabin is cleverly configured to accommodate 100 more gravitational sonobuoys on board than the rival can.

Korea has every reason to buy American products as "alliance costs," with the Poseidons included, but it still does have to save every penny it can. If allowing the Swordfish to compete can put the pressure on Boeing, it is worth giving Saab ahe little less skewed playing ground, isn't it?


TOPICS: Foreign Affairs; News/Current Events
KEYWORDS: boeing; poseidon; saab; southkorea

1 posted on 03/21/2018 7:44:40 PM PDT by sukhoi-30mki
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To: sukhoi-30mki

2 posted on 03/21/2018 7:45:25 PM PDT by sukhoi-30mki
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To: sukhoi-30mki
The deal breaker may be the Swedish IKIA business plan of "assembly required".
3 posted on 03/21/2018 7:52:23 PM PDT by Deaf Smith (When a Texan takes his chances, chances will be taken that's fore sure)
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To: sukhoi-30mki

What happened to Jane’s Defense Weekly? I expect such articles from them...


4 posted on 03/21/2018 7:56:29 PM PDT by nwrep
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To: sukhoi-30mki

Nothing said about range or loiter time. Ordnance load not impressive on either. Acoustic suite not mentioned on either—but likely neither is up to tracking any modern sub.

ASW is so far behind—unfunded for decades, the platform almost does not matter.


5 posted on 03/21/2018 7:58:46 PM PDT by whistleduck ("....the calm confidence of a Christian with 4 aces".....S.)
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To: sukhoi-30mki

When measuring capability, there is no comparison.

Poseidon is the best in the air.


6 posted on 03/21/2018 8:02:22 PM PDT by Mariner (War Criminal #18)
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To: sukhoi-30mki

On a per capita basis, South Korea runs a bigger trade surplus with the US than China. In 2017, this surplus was $23b. Vs ROK’s 50m population, this works out to a surplus of $460 per Korean. Whereas China ran a trade surplus of $375b. Vs PRC’s 1.379b population, this works out to a surplus of $272 per person.
https://www.census.gov/foreign-trade/balance/c5800.html#2017
https://www.census.gov/foreign-trade/balance/c5700.html#2017

Note that the Koreans don’t have the excuse that their population’s per capita output (a rough proxy for wages) is 1/7 the US number, as China’s is. South Korean GDP per capita is roughly 1/2 the US number. And yet South Korea persists in running huge trade surpluses while keeping trade barriers up in major sectors of the economy. For instance, Korean tax officials went to dealerships to obtain lists of buyers of American cars against whom to conduct tax audits.

Oddly enough, the free trade agreement signed with South Korea by Obama has had the effect of doubling Korea’s trade surplus. So the question is - if the Koreans won’t even buy American weaponry, maybe they can rely on the Swedish Navy to transport spare parts to them when the balloon goes up.


7 posted on 03/21/2018 8:10:28 PM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: sukhoi-30mki

The Art of the Deal.


8 posted on 03/21/2018 8:12:39 PM PDT by Parley Baer
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To: Mariner

I do like the digital camo on the Saab though.


9 posted on 03/21/2018 8:37:03 PM PDT by shanover (...To disarm the people is the best and most effectual way to enslave them.-S.Adams)
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To: sukhoi-30mki

If the SHTF in Korea it will be South Korean and American pilots flying, fighting and dying, not Swedish pilots.

If you were South Korea, which plane will you buy, Saab or Boeing?


10 posted on 03/21/2018 8:54:08 PM PDT by cpdiii (cane cutter, deckhand, roughneck, geologist, pilot, pharmacist, The Constitution is work dying for!)
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To: sukhoi-30mki

Considering what the USA has spent defending S. Korea over many decades they should buy anything we want to sell them.


11 posted on 03/21/2018 9:42:55 PM PDT by Enchante (FusionGPS "dirty dossier" scandal links Hillary, FBI, CIA, Dept of Justice... "Deep State" is real)
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12 posted on 03/21/2018 9:54:35 PM PDT by DoughtyOne (01/26/18 DJIA 30 stocks $26,616.71 48.794% > open 11/07/16 215.71 from 50% increase 1.2183 yrs..)
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To: Zhang Fei

Your posts are always great.


13 posted on 03/22/2018 12:20:39 AM PDT by gaijin
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To: sukhoi-30mki

I loved SAAB’s but they probably would have been more reliable and lasted longer had the Koreans made them.


14 posted on 03/22/2018 7:38:25 AM PDT by VietVet876
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To: sukhoi-30mki

Is the ignition switch down between the seats?


15 posted on 03/22/2018 7:54:38 AM PDT by brooklin
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To: gaijin

Your posts are always great.


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16 posted on 03/22/2018 4:09:23 PM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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