Sources inform "Globes" that ImageSat, which markets the Eros civilian photo-reconnaissance satellites, has not managed to obtain enough customers to justify launching the second satellite in the series.
ImageSat is owned by Israel Aircraft Industries (IAI), El-Op, and foreign investors. The Eros B satellite is scheduled for takeoff in another year. Its construction is being completed at IAI's Mabat plant.
The sources also reported that ImageSat CEO Jacob Weiss, a former IAI senior executive, recently resigned, even though the company has made no announcement. Former IAI VP of marketing Menashe Broder was appointed in his place.
The first Eros satellite was launched in December 2000. The planned series includes eight satellite launchings, based on the Ofek-4 Israeli military satellite.
IAI sources close to the satellite industry said, "Only three customers are guaranteed for the second satellite in the series: the Israel Ministry of Defense, which needs the photo-reconnaissance services until the Ofek-5 spy satellite is launched, and the governments of Taiwan and India."
ImageSat signed an agreement with Bank Leumi this year, under which the bank will extend a $70 million credit line to the company to finance development of the next satellites in the series. The funds are needed to meet the launching timetable for the satellites.
Most revenue from the satellites is expected to come from regular customers hiring the satellite for their needs through multi-year agreements that include the ability to aim the cameras. ImageSat asserts that it has signed contracts for satellite services worth $300 million with companies in Japan, Singapore, Canada, Argentina, Italy, Russia, Sweden, Taiwan, and South Africa.
ImageSat is registered in the Netherland Antilles. IAI holds 31% of the company, El-Op 9%, and foreign concerns 60%, including Core Software Technology of the US.
Published by Israel's Business Arena on December 27, 2001