Korea Aerospace Industries (KAI) announced on February 6 that it has signed a three-year performance-based logistics (PBL) contract with the Philippine Department of National Defense for the FA-50PH fighter aircraft.
The contract is valued at approximately KRW 101.4 billion (about USD 75 million) and will run through 2028. It follows a one-year pilot PBL agreement worth around KRW 27 billion that KAI signed with the Philippines in December 2024. According to the company, stable operational performance and high aircraft availability during the pilot phase led to the expansion into a long-term contract.
Under the PBL framework, logistics support is provided based on performance indicators such as aircraft availability and maintenance reliability, rather than on a parts-and-services basis. The approach is designed to ensure stable support throughout an aircraft’s lifecycle, which typically spans 30 to 40 years.
KAI has operated PBL programs for South Korean military aircraft, including the KT/A-1, T-50, and Surion helicopter families, for more than 15 years. The company said this experience has helped build confidence among overseas customers and strengthen its competitiveness in export markets.
The Philippines is one of KAI’s key FA-50 operators, having first introduced 12 FA-50PH aircraft in 2014. Since then, the two sides have maintained cooperation through follow-on support programs. In recent years, the Philippines has expanded its partnership with KAI by ordering an additional 12 FA-50PH aircraft and signing a contract to upgrade the performance of the original fleet.
The Philippine PBL agreement follows a similar contract signed with Thailand in April last year, highlighting a pattern in which aircraft exports are followed by long-term support, additional orders, and upgrade programs. KAI noted that after-sales support has become increasingly important in the global defense market, with lifecycle support costs often exceeding initial acquisition costs.
Park Kyung-eun, head of KAI’s Customer Support Division, said the company plans to continue developing tailored logistics support systems based on each customer’s operating environment. “By doing so, we aim to secure sustainable export competitiveness and further expand our presence in the global aerospace and defense market,” he said.
