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Malaysia asks Korean Aerospace Industries to reduce the price of FA-50 to $43 million per unit, the same price offered by HAL for LCA Tejas

Source : Indian Defence Updates (IDU)

Malaysia asks Korean Aerospace Industries to lower the price of FA-50 to $43 million per unit, the same price offered by HAL for LCA Tejas
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The Royal Malaysian Air Force (RMAF) had selected the Korean FA-50 which was quoted by Korean Aerospace Industries (KAI) at $50 million per unit but now Malaysia's Minister of Finance has asked Korean Aerospace Industries to reduce the cost of the FA-50 to $43 million which is the same price quoted by Hindustan Aeronautics for its Tejas Mk 1A which is a far more capable aircraft than the Korean FA-50.

Korean Aerospace Industries is unwilling to agree to a reduction of $7 million per aircraft as it needs to certify new equipment like AESA radar and In-Flight Refueling (IFR) probe on the aircraft as mandated by the Request For Proposal (RFP).

The Royal Malaysian Air Force (RMAF) is now facing difficulties in clearing the deal from its Finance Ministry as the deal for 18 FA-50 is over budget. 

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