EADS dropped from $7.3 bn South Korea jet fighter bid: Report

European aerospace consortium EADS have been eliminated from a bid to offer fighter jets worth $7.3 billion to South Korea by using a failure to satisfy some requirements, a report said Sunday.

The Eurofighter was dropped from the bid also sought by US company Boeing after the South’s military found that the EADS proposal didn’t meet its key demands, Yonhap news agency said.

It cited an unidentified official on the Defense Acquisition Program Administration (DAPA). A spokesman for DAPA was not immediately available for comment.

“A problem was present in the proposal document of 1 of 2 final bidders,” Yonhap quoted the DAPA official as saying, adding the troubled bidder was known to be EADS.

“The company in question was deemed unfit (to hitch the general bid),” the official was quoted as saying.

Seoul is looking for 45 one-seater aircraft and 15 two-seaters. But EADS proposed only six two-seater aircraft, that are costly to provide, resulting from budget problems, Yonhap said.

It also quoted the estimated budget in British pounds rather than in US dollars as demanded by Seoul, the scoop agency said.

DAPA will submit the proposal from the remainder bidder for a last review by top military officials, the official added, indicating Boeing’s F-15 Silent Eagle will be the only candidate.

The contract to exchange Seoul’s ageing fleet of F-4 and F-5 jets comes as major defence suppliers reel from drastic cutbacks in military spending within the US and Europe.

It was initially sought by EADS and US firms Boeing and Lockheed Martin, but Lockheed Martin has reportedly dropped out of the race.

South Korea’s military procurement needs, especially where the air force is anxious, have overwhelmingly been met by US suppliers before — a mirrored image in their close military ties.

But EADS’ hopes were raised in January, when Anglo-Italian company AgustaWestland beat US defence giant Sikorsky for a $567 million contract to provide six helicopters to the South Korean navy.

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