By Arie Egozi in Tel Aviv
Israel Aircraft Industries (IAI) is refusing to comment on Boeing's selection as sole bidder in South Korea's E-X competition. However, Israeli industry sources say IAI's South Korean bid is believed to have been significantly cheaper than Boeing's, at around $1.1 billion, and a single factor tipped the scales in favour of Boeing: "Elements of the US administration" that seek to block the transfer of sensitive US defence technology to Israel.
Sources say this opposition follows allegations that Israel transferred sensitive technology to China. Several years ago the USA blocked an airborne early warning system deal between IAI and China for Phalcon-type radar systems to be installed on Ilyushin Il-76s.
Last year Israel had to agree to a complete termination of all defence exports to China, after Washington accused Israel of agreeing to upgrade IAI Harpy attack drones secretly sold to China. However, Israel claimed the upgrade was part of a deal agreed with Beijing in the late 1990s.
In September 2005, L-3 pulled out of its partnership with IAI subsidiary Elta on the E-X project. Elta subsequently teamed with DRS Technologies. The Elta AEW system mounted on a Gulfstream G550 has a similar configuration to the one selected by the Israeli air force.
Source: Flight International
