Elbit Systems Ltd.( NASDAQ: ESLT) announced today that has been awarded, through its wholly owned subsidiary Cyclone Aviation Products Ltd., a 10-year contract from the Israeli Ministry of Defense for the operation and maintenance of the helicopters of the Israel Air Force (IAF) Flight School.
Under the contract, which will be executed by providing flight hours, Cyclone will provide full maintenance services to the IAF Bell 206 and Cobra AH-1A helicopters. The contract is valued at approximately $40 million. Cyclone has recruited approximately 30 specialists who are experienced in the maintenance of these IAF helicopters.
The maintenance and full logistic support of the IAF Flight School helicopters are being transferred from the IAF to Cyclone as part of the IAF process of outsourcing and privatization of various services. The service and support activities to be performed by Cyclone under the new contract are in line with other outsourcing services being performed by Elbit Systems for the IAF.
Elbit Systems is currently operating the Snunit GROB 120I trainer aircraft for the IAF Flight School. The Snunit program is a private finance initiative (PFI) contract, under which the trainer aircraft are owned and fully maintained by Elbit Systems. The Snunit trainers have already accumulated thousands of operational hours in the service of the IAF Flight School.
Elbit Systems president and CEO Joseph Ackerman said, "The contract for the maintenance and support of the IAF Flight School helicopters is an additional important milestone in the realization of Elbit Systems' strategy to expand its activities in the area of maintenance, support and operation services, in Israel and worldwide.
Published by Globes [online] - www.globes.co.il - on Wednesday, June 02, 2004