Israel Aerospace Industries announced on Wednesday it has signed a strategic agreement with Boeing last week, 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 Boeing platforms that could total more than $10 billion, including the sale of fighter aircraft, helicopters, and tanker aircraft.
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.
“IAI has for decades viewed Boeing as a strategic partner in many areas, both military and civil,” said Harel Locker, Chairman of IAI. “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.”