If the Israel Air Force agrees to buy $10 billion worth of tanker aircraft and fighter jets from Boeing, IAI could receive work worth billions of shekels.
Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) and Boeing have signed a strategic agreement setting out principles of cooperation between the two companies in commercial and military aviation, in Israel and other markets around the world.
According to the agreement, Boeing is expected to provide IAI with work packages totaling potentially billions of shekel, relating to potential future Boeing sales of defense products to Israel, including new tanker aircraft. The agreement also covers cooperation in other deals Boeing expects to participate in worldwide. >פIAI and the Israeli government have already cooperated for many years with Boeing in the development and manufacture of the Arrow system, production of parts for commercial airplanes, and a wide array of service activities. This decades-long partnership is now set to continue on a broader and deeper basis. IAI chairman Harel Locker said: "IAI has for decades viewed Boeing as a strategic partner in many areas, both military and civil. The Term Sheet which was signed last week will further strengthen and deepen the existing cooperation between the two companies, acting in partnership and synergy in Israel and internationally in many varied fields. I am grateful to the Ministry of Defense for its assistance in reaching this agreement with Boeing."
Published by Globes, Israel business news - en.globes.co.il - on November 29, 2018
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Harel Locker