Israel Aircraft Industries (IAI) today signed the final agreement for the supply of three Phalcon Airborne Warning and Control System (AWACS) planes to India. The $1.1 billion supply contract is the largest ever for Israel’s defense industries.
IAI president and CEO Moshe Keret flew to New Delhi on Friday to sign the deal, after the defense cabinet gave the go-ahead. Keret said today, “Completion of the deal follows extensive diplomatic, marketing, and engineering efforts. IAI and Elta Electronic Industries have unique AWACS capabilities. The connection between IAI and the Indian defense establishment has been significantly tightened, to the benefit of both parties.”
The AWACS system, manufactured by IAI subsidiary Elta, will be installed on three Il-76 Russian cargo planes. The systems include radar, electronic intelligence, and communications systems. The planes will fly early warning, air control, and electronic intelligence-gathering missions.
Installation of the systems on the first airplane is slated for completion in two years, and supply of the three planes is expected to take 5-6 years.
IAI sources said that Elta had many years of experience in developing AWACS technology, starting with the Condor project in for the Chilean Air Force in 1995. The Phalcon is based on radar developed in the Lavi fighter project. After the Lavi project was canceled, the radar was altered, and offered for sale to various countries. The first Phalcon was sold to the Chinese Army, but the US prevented the deal from going through. Israel had to disassemble the systems from the plane after it was already ready for delivery to China, and to compensate China for its money already spent, plus damages.
IAI also tried to market the Phalcon to Australia and Turkey, but both countries preferred US systems, although the Phalcon is considered to be the best in the world. IAI is currently competing against Boeing (NYSE: BA) in a tender to supply four planes to the South Korean Air Force.
Published by Globes [online] - www.globes.co.il - on March 7, 2004