IAI denies threat to Arrow 3 development program

Despite defense budget cuts, Israel Aerospace Industries insists the Arrow 3 ballistic missile interceptor is not at risk.

Even as the Ministry of Defense widens its threats to cancel weapons development programs due to a lack of funds, Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) Arrow program director Itzhak Kaya says that the Arrow 3 ballistic missile interceptor is not at risk. "The program is on track as one of the defense establishment's most important programs, and it has high priority. I am unaware of any threat to its continuance," he said at the 52nd Israel Annual Conference on Aerospace Sciences today.

IAI and Boeing Company (NYSE: BA) jointly develop the produce the Arrow.

Kaya said that Arrow 3, the system's latest version to intercept ballistic missiles in outer space, is undergoing rapid development. This capability is intended to incept missiles with non-conventional warheads outside Israel's borders, while retaining the ability for a second interception if the first fails.

IAI recently conducted a platform test of the Arrow 3, which included the launch of a model from the Palmachim Air Force Base to test various features of the missile. Kaya said that the first comprehensive test for the Arrow 3 system's effectiveness would be held soon in Israel. It is not clear when a trial to test the Arrow 3's ability to intercept an incoming missile will be held.

Kaya said that exports of the Arrow 3 were not on the agenda at this time. "This is the most effective and unique system, and there is no doubt that it can fit the needs of many countries as a primary defense asset. At the moment, no export deals are on the agenda, and in any case, the matter would be handled at the highest political level. Such deals need a long process, and they are not handled by IAI's channels."

Last month, IAI reported progress in the Arrow 3's development, with a successful test of the missile's tracking, discovery, and identification Super Green Pine fire control radar system, based on the Arrow 2's Green Pine radar system. The Super Green Pine successfully tracked a Blue Sparrow 2 target, which imitated an incoming ballistic missile. The Super Green Pine includes elements of the US Ballistic Missile Defense System.

The Arrow defense system is Israel's answer to the threat of Iran's ballistic missile, in a scenario that Iran responds to an attack against its nuclear facilities. The defense establishment has said that the large number of recent Arrow system tests is unrelated to security developments in the Middle East, and that the tests were in accordance with the system's development timetable that was prepared long ago.

Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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