IAI is competing in the tender against Boeing and Thales.
Israel Aircraft Industries (IAI), Gulfstream, and L3 have submitted a joint bid to sell four early warning and surveillance systems to the South Korean Air Force for $1.7 billion.
The three companies have set up a joint team to compete in the tender, called the E-X plan.
The joint bid includes the Gulfstream G550 plane. IAI subsidiary Elta Electronic Industries will supply the Phalcon radar system, and L3 will supply the airplanes with a telecommunications envelope. The companies are also offering reciprocal procurement in South Korea South Korean companies will be able to participate in the assembling and maintenance of the systems as subcontractors for the bidders.
The IAI Phalcon system and its predecessor, the Condor, have scored successes over the past ten years. They were chosen by the Chilean Air Force, the Chinese Air Force (the US torpedoed the deal), and the Indian Air Force, which acquired three Phalcon systems early this year on the Russian L-76 airplane platform. IAI failed in similar tenders in Turkey and Australia.
Other participants in the South Korean tender include US defense giant Boeing (NYSE: BA) and Thales of France. Elta managing director Israel Livnat expressed confidence, saying, “Our proposal will be higher quality, with the widest performance, and at a more competitive price.”
Contacts in preparation for the South Korean tender began a few months ago, and included meetings between IAI president and CEO Moshe Keret and senior officials of the South Korean defense ministry. The three companies filed their official bid last week.
