Agreement on Joint Aerospace Activities in Israel and Internationally, Amounting to Billions of Shekel
November 28, 2018- Boeing and Israel Aerospace Industries last week 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 transactions Boeing expects to participate in worldwide.
The “term sheet” agreement reflects Boeing’s commitment to the State of Israel and its activities here. The Israeli Air Force is evaluating the procurement of world class Boeing platforms that could total more than $10 billion, including the sale of fighter aircraft, helicopters, and tanker aircraft. If Boeing is successful, it could place work at IAI worth billions of shekel.
IAI and the State of Israel 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.
Harel Locker, Chairman of IAI, 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.”
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