Israel Aircraft Industries is to transfer management of its aircraft spare parts inventory to an outside company.
The aircraft accessories plant in the company’s Bedek division will rid itself of most of the inventory at its disposal, after signing a five-year agreement with Kellstrom of the US, which has been chosen to manage the inventory. Kellstrom bid in a tender against Aviation Sales of Miami, one of the reasons for whose rejection was that it competes with Bedek in aircraft maintenance.
Aircraft accessories plant manager Yoram Friedman did not deny that the reason for Kellstrom winning the tender is that it is owned by an Israeli. Kellstrom’s president is Ziv Nedivi, an Israel Air Force combat pilot, who became famous some years ago for safely landing an F15 with only one wing, after it collided with a Skyhawk during training.
The Bedek division holds an inventory consisting of 40,000 parts. It is currently worth tens of millions of dollars, and the need for outside management arose due to the high costs of maintaining and renewing it.
The accessories plant supplies the Bedek division with spare parts for the maintenance of aircraft belonging to foreign companies at the large hangars at Ben Gurion Airport. The agreement with Kellstrom’s Solair division, located at Fort Lauderdale, Florida, will enable it to spot new customers for IAI, such as any airline transferring its inventory management to it.
The sales turnover of the accessories plant amounted in 1998 to $60 million, reaching $70 million this year. Eighty percent of sales are for export. The Y2000 sales target is $100 million. Kellstrom’s sales turnover is $300 million a year.
Published by Israel's Business Arena August 12, 1999