Rafi Maor on the challenges IAI faces

Rafi Maor on the challenges IAI faces

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IAI_Harop_PAS_2013_01By ARIE EGOZI

Rafi Maor, chairman of Israel Aerospace Industries (IAI), was in the company in several senior positions, went to the private market and came back . He knows IAI from any aspect, and is currently doing efforts to cope with some major problems that the state owned largest defense and aerospace company faces. Maor says that as a state owned company IAI is restricted in many ways. “We are now combining all our capabilities to be able to better compete in the market.”

IAIN8650Photograph: Eugene Weisberg

Can you be more specific?

“We are working on a new strategy for our civil operations. This is already in implementation-  the Bedek group was selected to supply 4 Boeing 767’s to Brazil after conversion that will make them a multi-mission aircraft, including an aerial refueling capability (MMTT). We are competing with Boeing and Airbus in South Korea for a similar conversion”

This is a good example of using the civil capabilities for increasing sales in the defense market. In recent years, Airbus has entered the special mission aircraft market. So far IAI has converted only Boeing aircraft. Any plans to go into the Airbus conversions?

“We are in contact with Airbus but I cannot be specific at this stage”

Last year IAI announced that it is evaluating going into the design and production of a small private jet. How far is this programme gone and why is IAI not in the regional aircraft business?

“After the cancelation of our Lavi fighter program in the 1987 , we have evaluated the entry into the global commuter market but I think that the cancellation trauma prevented us from investing large sums in a new development program. The Private Jet program is still being evaluated. It is based on a revolutionary approach.”

Maor, however, did not elaborate on this but went on:

“To your second question in this context: While in Brazil the government invested heavily in Embraer and made the company a major supplier of regional jets, that was and is not the situation in Israel”.

The ongoing “war” between IAI and Elbit systems, Israel’s largest private defense and aerospace company has caused losses to both companies especially in the unmanned air systems (UAS) business. What happens now on this front?

“The current relations between the companies are very good and while competition continues, which is a good thing it will be  according to the normal lines. At the same time I don’t rule out cooperation between the two companies ” Maor said.

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IAI has made huge efforts to sell its Heron TP MALE UAS to some countries in Europe, but without success, Recently it was announced that Germany, France and Italy are moving towards a European made MALE UAS. has that closed this market for you?

“Not at all, some of these countries are presently leasing UAS from us to back their operations. At we are still in close contacts with major players such as Airbus for joint military for military programmes and the establishment of a European subsidiary is still on the table.”

If this happens, the model will probably be similar to Stark Aerospace, IAI’s subsidiary in the U.S. This started mainly to help the marketing of UAS but has quickly developed in other direction. “Now this company is manufacturing aircraft sub assemblies for Boeing and this is only the beginning.”