US Drops Objections, Clearing Way For Deal

Israel's security cabinet Sunday approved the $1.2 billion dollar sale of three Phalcon AWACS aircraft to India, after the US dropped the same kind of objections which blocked a similar deal with China.

"Approval of the sale of early warning systems craft to India, by the cabinet Security Council, is an important step in the completion of the deal, and now the process will move along quickly to its realization. This deal also represents an important acknowledgment of IAI’s technological capabilities by a nation like India," said Moseh Karett, CEO of IAI.

The aircraft, built on an Ilyushin IL-76 airframe, is touted as one of the most advanced AWACS aircraft in the sky. The three aircraft to be sold to New Delhi will include a large satellite dish at the rear of the airframe, along with Israel's much-vaunted Elta radar system.

The deal has been on the table since the end of 2001, according to the Israeli news publication Maariv. Negotiations began after the US objected to a similar sale of Israeli AWACS technology to China. American officials also initially objected to the India deal. But those objections were dropped last summer.

FMI: www.iai.co.il