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Thursday, March 15, 2012

Israel's embargo could undermine IAI-Boeing partnership

[Boeing 737-700 AEW&C (Peace Eagle)]Israel's order to Israel Aerospace Industries, Ltd., unit Elta Systems to delay the delivery of early warning electronic systems to Turkey could undermine Boeing's cooperation with other Israeli defense suppliers, according to Defense News magazine.

The Israeli Ministry of Defense has instructed Elta, responsible for the production of the early warning subsystems for Boeing, to delay the delivery of two of the four systems.

Defense News magazine reported that these recent developments in the $1.6 billion Peace Eagle project have led to fears in Israel that its bilateral commercial relations with the United States would deteriorate.

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