South Koreans F-16 Upgrade Deal Finalized by BAE

Britain's BAE Systems said on monday to upgrade 130 F-16 fighter at its Forth Worth, Texas, Plants and Other Sites it will hire 300 workers after the US government finalizes the deal, it hopes to replicate in other places in Europe and Asia in coming years.

According to the South Korean Media Reports, In 2012 the BAE beated out  the jet makers, Lockheed Martin Corp for the upgrade work, whose worth was around $1 billion.

Historically the companies that made warplanes also serviced them and upgraded them but due to the tight budget of the military the arms maker in the US and Europe looks for business in this new era like upgrade works.

Erin Moseley, president of BAE Systems' Support Solutions sector said that the deal was a significant expansion of BAE's F-16 modernization business. She added that the company is also in talks with other companies in Europe and Asia about similar works.

Mosely said, 
"A number of countries were watching to see if this model could be successful."
40 percent of the work building and upgrading the avionics on the jets is done by BAE.

The cost structure of the company was different the Lockheed which made it more cost effective

She said that the company is expecting another F-16 upgrade deal by the end of 2014 for over 3000 F-16 to be upgraded.

Mosely added :
"The options are endless, or close to it,We believe F-16s are going to be there for quite some time. It's going to be a great chance for a franchise."

he said that some countries are intrested in buying the Next Generation F-35 made by Lockheed but until they are available for delivery they are looking to upgrade their F-16s.

Bae is the major supplier of F-35 but for some countries  who cannot afford them Upgrading of F-16 is a good option.

Bae said the first phase is worth $200 million and covers the initial design and development efforts. The second phase, covered under a separate contract, would kick off in 2014, covering the production and installation of upgrade kits for South Korea's KF-16C/D Block 52 aircraft.

(Reporting by Andrea Shalal-Esa; Editing by Jeffrey Benkoe)