Defence firms see Asia opportunity in Russian absence from air show

Korea Aerospace Industries

22/02/2024 11:03

By Gerry Doyle
       SINGAPORE, Feb 22 (Reuters) - Russia's absence from the
Singapore Airshow, as its companies struggle with sanctions and
the demands of sustaining the invasion of Ukraine, shows an
opportunity for rivals to step in with some Asian customers,
experts and industry sources say.
    Defence giants such as UAC and Russian Helicopters have
historically had large presences at Asia's biggest air show,
where companies show off a range of systems, from sensors and
small arms to massive transport aircraft, missiles and
satellites.
    This year, however, no Russian companies were listed among
attendees - which competitors said was a sign the door was open
in Asia.
    "In this region you have seen a shift away from Russian
equipment already," said Robert Hewson of Sweden's Saab
 SAABb.ST . "Of course there are some natural client
countries... who stay where they are" in terms of suppliers.
    Sangshin Park, regional manager and chief of international
business development for Asia at Korea Aerospace Industries
 047810.KS , noted that his company had sold its FA-50 light
fighter aircraft to Malaysia in a deal worth more than $1
billion. Malaysia also operates Russian-made aircraft such as
the Sukhoi Su-30.
    Several other Southeast Asian countries, including
Indonesia, Vietnam, Cambodia and Laos, also use Russian-made or
Soviet Union-vintage equipment, sometimes alongside Western-made
gear.
    Russia's largest arms exporters did not respond to Reuters
requests for comment.
    "I think there will always be opportunities for Western
defence companies, and in particular, South Korea would be a
highly visible exporter in the region," said Malcolm Davis, a
senior analyst at the Australian Strategic Policy Institute. 
    "It largely depends on the needs of the customer - but I'd
imagine maritime and naval capabilities, UAS and drone systems,
and combat aircraft and helicopters that can respond to
challenges in a maritime and archipelagic environment would be a
priority," he added.
    A senior executive at a U.S. defence contractor said support
for purchased systems was a crucial part of arms sales in Asia
and elsewhere. He said that was a selling point for his company,
and other Western and Asian industry officials said their firms
also saw this as an advantage.
    India has been trying to move away from Russian arms imports
as munitions and parts are expended in the war in Ukraine,
Reuters reported last month.
    "As you grow and your needs grow ... you can build upon what
exists, and you know that there will be support," said the U.S.
company executive, who declined to be named because of the
sensitivity of the matter.
    No major Asian defence deals have been announced at the air
show so far. The trade portion ends on Friday.

 (Reporting by Gerry Doyle; Editing by Jamie Freed)
 ((Gerry.Doyle@thomsonreuters.com;))