Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) and Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) joint venture Tor Ltd. has approached South Korean and Italian aircraft manufacturers for quotes for a new trainer for Israel Air Force cadets.
As "Globes" was the first to report, in December, IAI and Elbit Systems obtained permission from Antitrust Authority director general Ronit Kan to collaborate in the independent purchase of trainers for combat pilot cadets. Tor will sell services to the Air Force.
A few days ago, Tor approached Italy's Alenia Aermacchi, which makes the M-346 jet, and Korea Aerospace Industries, which makes the T-50 jet, for quotes and delivery times.
Sources inform ''Globes'' that Tor plans to independently purchase 60 jet trainers from one of the two companies. The jet trainers will replace the Air Force's Skyhawks for training pilot cadets. The obsolete Skyhawks will be taken out of service.
The company that will sell the next jet trainers will be required to make reciprocal procurements in Israel. A plan for reciprocal procurements and the amount required that will be sent to the two foreign companies, are now being formulated by the Ministry of Industry, Trade and Labor's Industrial Cooperation Authority.
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2011
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