Wednesday, January 15, 2025

Malaysia Selects FA-50 Over LCA-Tejas For $920M Contract Due To Superior Service Record & Reputation

By Aritra Banerjee

Malaysia has awarded the contract to supply 18 aircraft for its Fighter Lead-In Trainer-Light Combat Aircraft (FLIT-LCA) program to Korea Aerospace Industries (KAI). The contract, valued at US$920 million, will see KAI deliver the FA-50 Golden Eagle, a weaponised version of the T-50 trainer, in 2026. The decision comes after a competitive tender that included India’s Tejas fighter jet made by Hindustan Aeronautics Limited (HAL).

The FA-50 Golden Eagle is combat-tested, having been used by the Philippine Air Force in various missions against militants, including the 2017 Marawi campaign. This operational experience could be crucial for the Royal Malaysian Air Force (RMAF), which is likely to use the aircraft for air patrols and interceptions due to the low availability rates of its mainstay fighters, the F/A-18 Hornet and SU-30 Flanker, and the suspension of the Multi-Role Combat Aircraft (MRCA) program over budgetary issues.

The decision to select the FA-50 over the Tejas, which has a lower price tag of about $28 million and is more capable in areas such as range and service ceiling, may be due to the platform’s established brand name and proven capabilities. Some 200 of the FA-50 aircraft are currently in service with South Korea, Iraq, and ASEAN members, including Indonesia, the Philippines, and Thailand. Colombia also recently placed an order for 20 FA-50s, and KAI is confident of striking an FA-50 deal with Egypt, its first venture into the African market.

For Malaysia, acquiring the FA-50 marks the first step on its Capability Development Plan 2055 (CAP55) transformational journey. The roadmap outlines Malaysia’s plan to acquire 36 aircraft under the FLIT-LCA initiative, which could mean the procurement of another 18 FA-50s. As part of CAP55, the RMAF plans to streamline the types of combat aircraft from five to two (the MRCA and FLIT-LCA) to reduce operating costs. The FA-50, with its proven capabilities, should alleviate any “heavy” fighter gap that Malaysia would face.

A Republic of Korea Air Force FA-50 carrying a captive training missile on its wingtip; File Photo

“We were short-listed for the Malaysian LCA contract. We were hopeful as we were very competitive on several criteria but unfortunately, this has not gone our way,” said a highly placed source in HAL.

HAL’s reputation may have influenced Malaysia’s decision to select the FA-50 over the Tejas. HAL has had a chequered safety record, with its quality and delivery being other aspects it has also been called out for in the domestic market as well. According to sources, HAL’s poor safety and reliability record led to a horrible accident in Ecuador, where the company exported the ALH. HAL’s poor spare support damaged the reputation of the domestic industry and negatively impacted the country’s name, contributing to the lack of exports.

The Rafale procurement process was reportedly affected by the public sector undertaking’s poor reputation. Dassault Aviation hesitated to enter into a deal with HAL during the process due to the company’s quality control issues. This clearly highlighted the need for more confidence in HAL’s production capabilities. It also underscores the importance of addressing these issues to ensure India’s military-industrial complex’s continued success and reputation. The loss of the Malaysian contract, if even partly on reputational grounds, is worth introspecting over as the company and the country look to make it big in the global export market.


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