IAI loses Korea plane tender
Boeing is to supply South Korea with new early-warning aircraft, the South Korea Defense Ministry announced at the weekend.
The Boeing bid totaled $1.65 billion. Boeing's competitor was an American-Israeli bid from Elta, a subsidiary of Israel Aircraft Industries, Gulfstream and DRS, worth $1.15 billion.
According to Israeli estimates, the Israeli-American group failed to convince the Koreans it would be able to receive export licenses for all of the technologies it was offering them.
The meaning of this for IAI is mostly the loss of future income. Defense sources said no firings are expected at Elta as a result of the loss, because the company has other foreign customers with existing contracts.
Elta, the most profitable company in the IAI, is not expected to post a loss as a result of the loss of the tender.
IAI will also lose out in the field of technology - the company was supposed to be exposed to new technologies from DRS for integration between air and ground systems.
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