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Frontiers July 2013 Issue

ILLUSTRATION: (This page, far left) Israel’s Arrow 3 interceptor missile is being jointly developed with Boeing. Boeing PHOTOS: (Near left) A Boeing F-15 operated by the Israel Air Force. Boeing (Opposite page, bottom) Israel will be the first international operator of the Bell Boeing V-22 tilt-rotor aircraft, shown here on a U.S. Marine Corps mission. Cpl. Jenifer Pirante/U.S. Marine Corps BOEING FRONTIERS / JULY 2013 29 military products, Hill noted. Boeing F-15 jet fighters and Apache helicopters are at the core of the Israel Air Force’s fleet. In April, at a news conference in Tel Aviv, the United States and Israel announced that the U.S. will deliver an unspecified number of the Bell Boeing V-22 Osprey tilt-rotor aircraft to Israel, which will make it the first V-22 international operator. For more than a decade, Boeing and Israel Aerospace Industries (IAI) have shared a partnership for missile defense initiatives, including co-manufacture of Israel’s Arrow 2 interceptor. Boeing and IAI are now developing the Arrow 3. Boeing’s Huntsville, Ala., facility will play a major role in manufacturing the new interceptor. “The Israeli defense market is a very important one because of the very discreet and capable systems that Israel requires,” Hill said. “Our collaborative development of the Arrow 3 is creating a product that is both essential to Israel’s national defense and has global applications that could lead to third-party sales.” David Ivry has served as president of Boeing Israel since 2003. Prior to that, he was Israel’s ambassador to the United States and has held leadership positions in both government and industry. He was also a military pilot and served as commander of the Israel Air Force. “I was qualified in 38 types of airplanes, from the Spitfire to the F-15,” Ivry recalled. “In the beginning, we couldn’t afford new airplanes so we relied on the secondhand market, including some older models. We all had to pilot a wide range of aircraft.” Boeing Israel, based in Tel Aviv, maintains a staff of both outside and local hires, as well as employees on temporary assignment. Although Boeing has no subsidiary operations in Israel, the team has diverse responsibilities working with commercial and military customers as well as local partners and suppliers. “Boeing has a very solid reputation here,” Ivry said. “Customers have a high regard for our reliability and the quality of our products. Since the beginning of the state, Boeing has been the clear choice of the Israeli military and the nation’s airlines.” The Israel Air Force has a strong international reputation, and its choice of Boeing products has strengthened international sales, Ivry noted. El Al, which was privatized in 2003, continues to fly an all-Boeing fleet, including 747s, 767s, 777s and Next-Generation 737s. Arkia Israeli Airlines, which operates charter, scheduled domestic and cargo services, is in line to become the first Israel-based carrier to operate the Boeing 787 Dreamliner. Todd Nelp, vice president, European Sales, Boeing Commercial Airplanes, said Israeli airlines have been excellent longtime partners. But the market is becoming increasingly competitive, with Airbus offering products to replace aging Israeli airplanes. “Our relationship with both El Al and Arkia is as strong as it’s ever been,” Nelp said. “While we still look on it as a favorable market, it is an increasingly challenging market. So we need to maintain our high level of customer service and work with the airlines to support their fleet replacement and expansion plans.” Israel has a strong technical sector, and Boeing has important business alliances with Israeli companies. For example, Israel Aerospace Industries joins other companies—including Elbit Systems and Rafael Advanced Defense Systems—that contribute technology or manufacture components for a wide range of Boeing defense and commercial products. Working with Israeli partners has been mutually beneficial. “What has really impressed me is the technological innovation and speed at which Israelis develop things,” said Mira Ricardel, vice president, International Business Development, Boeing Network and Space Systems. “They’re also very good at keeping products affordable throughout their life cycle. This has evolved in their business culture over time as they’ve found ways to overcome the challenge of working with limited resources.” Israel has a layered missile defense system, with the lowest layer made up of systems to defend against rockets, artillery and mortars. A layer above this is the Arrow 2, which is designed to intercept shorter-range ballistic missiles. Arrow 3 will be the highest layer of defense—intercepting longer-range ballistic missiles that can potentially carry weapons of mass destruction. “Israel is a small country in a difficult neighborhood, so Arrow 3 is a vitally important program,” Ricardel said. “When you


Frontiers July 2013 Issue
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