Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) today announced that Tor Advanced Flight Training, its partnership with Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1), established for the Israel Air Force's future trainer program, has reached an agreement with the Ministry of Defense on a $603 million contract, of which Elbit Systems' share is $420 million for providing services and systems as a subcontractor to Tor.
The contract is expected to be signed in the coming weeks, following the finalization of several financing procedures. In order to facilitate meeting the project’s schedule, TOR received an interim $27 million purchase order and financing from the Ministry of Defense.
In the project's establishment phase, Elbit Systems will establish an enhanced logistic support and maintenance infrastructure for the new trainer as well as an advanced ground training array. The new, advanced avionics systems that Elbit Systems will supply will improve the readiness of Air Force pilots in operating next-generation aircraft. Elbit Systems’ share in this phase of the project, worth $110 million, will be carried out over three years.
During the project's operational phase, Elbit Systems will provide logistics services for the trainer and the new aircraft array, worth $310 million, over twenty years.
Elbit Systems outgoing president and CEO Joseph Ackerman said, “We are proud to take part in yet another important project for the Ministry of Defense and the Air Force. In recent years, we have provided the Air Force with advanced avionics systems and training infrastructure, as well as maintenance and logistics support services."
Elbit Systems Aerospace Division co-general manager Yoram Shmuely said, "The Air Force's future trainer program marks a significant milestone in the Aerospace Division's activities, and I congratulate and thank the division's employees for their contributions in achieving this selection."
Published by Globes [online], Israel business news - www.globes-online.com - on September 10, 2012
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