Air Defense: May 9, 2001

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South Korea is still seeking a new air defense missile system under the SAM-X program, expected to cost just under $2 billion. The problem is that after the Russians withdrew their S300 missile system from the competition, only Raytheon with the Patriot missile remained, and there were concerns that without competition the price might be too high. To alleviate these concerns, Raytheon got permission from Greece to give the South Koreans financial details of the sale of similar systems to Greece, providing a price comparison. (Raytheon also cut its price, but said that this was due to a revised delivery schedule which enabled it to offer a better deal.) The Raytheon offer includes 48 Patriot missile launchers, PAC-3 radars and ground components, and GEM (Guidance Enhanced Missiles).--Stephen V Cole 

 


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