Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) and Israel Aircraft Industries Ltd. (IAI) are competing in two tenders for the privatization of flight schools, one by the Israel Air Force (IAF) and the other by the Singapore Air Force. Both tenders are for first-stage trainers. Each tender is reportedly worth tens of millions of dollars.
The IAF tender is for the replacement of Zukit trainers (formerly known as the Fouga Magister). Elbit Systems is offering the EMB-314 Super Tucano trainer/light attack aircraft made by Embraer-Empresa Brasileira De Aeronutica S.A. (NYSE:ERJ; Bovespa:EMBR3). IAI is offering its two-seat Javelin executive jet, jointly developed with Aviation Technology Group Inc. of the US.
The IAF began the privatization process of its flight school four years ago, when it transferred the maintenance of first-stage trainers to Elbit Systems. The company replaced the flight school’s obsolete Piper trainers with advanced Grob trainers made by Grob Aerospace Aircraft of Germany. The present stage of the IAF tender is the most prestigious, since it involves first-stage trainers to replace the Zukits in service since the 1950s.
In the of Singapore Air Force flight school privatization tender, Elbit Systems and Embraer are jointly competing against three companies, one of which is Raytheon Corp. (NYSE:RTN). Elbit Systems and Embraer are offering a range of trainers. IAI also recently announced that it intended to compete participate in the tender, and was considering a joint bid with the Singapore Technologies Aerospace Ltd.
Published by Globes [online], Israel business news - www.globes.co.il - on August 23, 2006
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