Israeli industry clinched its largest-ever defence deal on 5 March, when India signed a $1.1 billion contract for three Phalcon-type airborne early-warning systems, writes Arie Egozi.
Signed in New Delhi, the contract will trigger a downpayment of $300 million that will enable Israel Aircraft Industries (IAI) subsidiary Elta to begin manufacturing the Phalcon radar systems at Ashdod. Deliveries to India are scheduled to begin in 2007.
The radars will be installed on three Ilyushin Il-76 transport aircraft for the Indian air force, along with electronic intelligence (ELINT) systems and communications equipment. Aircraft missions will include the tactical surveillance of airborne targets and collection of ELINT data.
India's signature followed an Israeli government agreement on 29 February to underwrite IAI's contract in the event of cancellation due to political pressures.
Israel had to pay China $350 million compensation after its Phalcon deal was scrapped following US opposition.
Source: Flight International
