Korean Air signs Joint Marketing Agreement on P-3 Upgrade with Lockheed Martin

Korean Air and Lockheed Martin have signed a joint marketing agreement on the P-3 Orion Maritime Patrol Aircraft upgrade and refurbishment business.

Suh Sang-Mook, President of Korean Air Aerospace Division, and Jennifer Smith, Vice President of Lockheed Martin Tactical Systems, announced at a signing ceremony held in Korean Air's headquarters today that the two companies agreed to jointly explore overseas business for P-3 Orion Maritime Patrol Aircraft.

Under the agreement, Lockheed Martin will transfer all core technologies related to the P-3 Orion refurbishment project to Korean Air. Lockheed Martin and Korean Air will conduct projects in a combined effort to extend aircraft service life and expand operational capabilities at home and participate in the business abroad as well.

"This agreement secured an opportunity for the two companies to join the P-3 Orion upgrade and refurbishment project in third countries," said a Korean Air official. He added, "Lockheed Martin designated Korean Air's Gimhae plant as LM's first-ever "P-3 Orion Service Center" in Asia. Therefore, Korean Air will be provided with Lockheed Martin's expertise and equipment exclusively so that Korean Air can improve P-3 Orion's operational and integrated logistics support capabilities."

Jennifer Smith, Vice President of Lockheed Martin Tactical Systems, said, "In addition to the Korean Navy's Lot-II Maritime Patrol Aircraft upgrade project, this agreement aims to find a larger market abroad for the business in the future." She also said, "Lockheed Martin will seek business opportunities to modernize the P-3 Orion proactively with Korean Air in the U.S. Navy and Asian - Pacific countries down the road."

Around 450 units of P-3 Orion Maritime Patrol Aircraft, developed and supplied by Lockheed Martin in the late 1960s, are now in operation in 16 countries. The aircraft is in need of upgrade and refurbishment after more than 20 years of service. Given the bright outlook for the aircraft upgrade project, Korean Air is expected to find a way to tap overseas markets worth more than KRW2 trillion with this strategic alliance as a momentum.