KAI, Airbus MOU For Helicopters, Satellites, Planes

South Korea's Korea Aerospace Industries (KAI) has agreed to step up strategic cooperation in the aviation industry with Airbus Group for greater technical cooperation.

The memorandum of understanding (MOU) was also signed for expanding business areas on the side lines of the Seoul International Aerospace and Defense Exhibition, Yonhap News Agency reported today.

The MOU outlines bilateral tie-ups in both civilian and military aircraft, as well as in maintenance and repair overhaul operations.

The two companies will work more closely in fields like helicopters, space satellites, and the development of medium fixed-wing planes, which can all contribute to more business opportunities and growth.

"Close cooperation between the two companies will result in mutually beneficial growth," said Byun Sang-bong, general manager of KAI's commercial aircraft business division.

The KAI assumes that the MOU could lead to 1 trillion won (US$879 million) worth of new orders down the line. However, KAI is already working with Airbus to develop the South Korean next generation light civil and light armed helicopters.

The South Korean has been building various airframe structures for Airbus for over 10 years. In 2015, KAI expects airframe structure exports to reach 910 billion won, with this number likely to grow to 2 trillion won by 2020.