IAI to supply spy aircraft systems to Turkey - report

"Hurriyet Daily News" reports that Israel Aerospace Industries is to restart manufacturing the systems following pressure from Boeing.

Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) unit ELTA Systems has decided to restart the manufacture of electronic measures systems the Turkish Air Force's Boeings 737 early warning and control Systems spy aircraft, "informed sources" have told Turkey's "Hurriyet Daily News."

The newspaper added that the decision paves the way for the release of Boeings long-delayed four 737 planes, which were built for a total of $1.6 billion. The Turkish daily also speculated that the decision to supply the critical devices may also mean an end to Israel's two-year defense exports ban for Turkey. The sources said that with the decision to continue production recently, the manufacture of a third plane approached completion. ELTA had finished the production of the EMS systems for the first two aircraft years ago.

"Hurriyet Daily News" recounted that in 2002, Turkeys defense procurement agency, ordered four 737-700 AEW&C aircraft from Boeing, ground radar and control systems, plus ground control segments for mission crew training, mission support and maintenance support. Under the agreement the four aircraft were supposed to be released in 2006. But the integration of the planes took much longer. ELTA is building the EMS systems for four aircraft and its Turkish systems are expected to cost more than $100 million.

The ELTA decision follows Boeings efforts to urge the Israeli company to restart this Turkish manufacturing. Elta is the single producer of the EMS systems for Boeings 737 aircraft. The 737 Boeing AEW&C aircraft are to be used as part of Turkeys NATO capabilities.

Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2012

Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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