Korea Aerospace Industries (KAI) said on February 6 that it has signed a performance-based logistics (PBL) contract with the Philippine Department of National Defense for FA-50PH fighter jets.
The contract is valued at approximately 101.4 billion won ($75 million) and will run for three years through 2028. The agreement follows a one-year PBL pilot contract worth about 27 billion won that KAI signed with the Philippines in December last year, the first such arrangement with an export customer.
According to KAI, the pilot program demonstrated stable aircraft operations and high availability rates, helping build confidence in the PBL framework and leading to the newly signed long-term contract.
Under the PBL model, logistics support is provided based on performance indicators such as aircraft availability and maintenance reliability. The approach is designed to ensure stable sustainment across the aircraft’s full lifecycle, typically spanning 30 to 40 years, and is regarded as an advanced logistics support model in the aerospace and defense sector.
KAI has accumulated around 15 years of experience in PBL operations, beginning with the KT/A-1 aircraft for the Republic of Korea Air Force in 2010, followed by the T-50 advanced trainer and the Surion helicopter family. The company said this operational track record has strengthened trust among overseas customers and enhanced its competitiveness in global exports.
The Philippines is a key operator of the FA-50 platform, having first acquired 12 FA-50PH aircraft in 2014. Over the past decade, the two sides have maintained close cooperation through structured logistics support and stable sustainment arrangements.
Building on this relationship, the Philippines signed a contract last year for an additional 12 FA-50PH aircraft and is also moving forward with an upgrade program for the original batch delivered in 2014, further expanding bilateral cooperation.
Following a PBL contract signed with Thailand in April last year, the latest agreement with the Philippines highlights a maturing virtuous cycle in which aircraft exports are followed by long-term sustainment, additional procurement and upgrade programs.
As sustainment and follow-on support programs can account for two to five times the initial acquisition cost of aircraft, KAI is positioning after-sales support as a core business area and a key differentiator in the global aerospace and defense market.
Park Kyung-eun, head of KAI’s Customer Support division, said the company will continue to build tailored sustainment systems optimized for the operational environments and requirements of countries operating or planning to introduce Korean aircraft, with the aim of securing sustainable export competitiveness and expanding KAI’s global footprint.
