Boeing will deliver the first subassemblies for the Arrow anti-tactical ballistic missile to Israel Aircraft Industries (IAI) in 2005. Although talks are under way to export the system, "at this point co-operation with Boeing is aimed at supplying missiles to the Israeli air force only", says Dani Peretz, IAIhead of the Arrow programme.

The US company will manufacture around 50%of the missile's components. Boeing president missile defence systems Jim Evatt says the deal will reduce the Arrow missile's unit cost. "This is the aim of the co-operation," he says.

Raytheon, which manufactures the competing Patriot system, has claimed the IAI/Boeing Arrow joint venture will hamper the export of US anti-tactical ballistic missiles. "If we get US approval to export the Arrow system to other countries, it might compete with the Patriot system, but this is a normal situation," Peretz says.

One key Arrow target customer, India, has also been offered the Patriot system, say Israeli sources. The US government may block India's Arrow acquisition plans. "We have concerns about the introduction of more missiles into this area. It would be destabilising," says the US State Department.

Meanwhile, Israel believes the missile-defence agreements with Alenia Spazio, BAE Systems and EADS announced by Boeing at Farnborough have opened the way for Arrow to be offered in the European market.

Source: Flight International