Aviation Industry Sources: The Rejection Was Politically
Motivated
Airbus Industrie has
rejected Israel Aircraft Industries’ (IAI) proposal to
manufacture fuselage parts for the future A380 super-jumbo jet.
Airbus, a consortium of France, Germany, Spain, and the UK,
estimates 1,300 A380s will be sold over the next 20 years.
Aviation industry sources tell ANN's contributor in Israel that
Airbus rejected IAI’s proposal for “political reasons."
They said Airbus admitted that IAI’s proposal was
economically and professionally viable, but the EU poor relations
with Israel over its conflict with the Palestinians were a factor
in the rejection. A second reason was El Al’s purchase
of new Boeing planes. Lobbying by the US administration on
Boeing’s behalf has been noteworthy in recent tenders,
including El Al’s.
IAI has been negotiating to participate in the A380
project since 1999. Former IAI VP development and now
representative in France Dr. David Harari once said IAI would be a
1-2% risk partner in the project, for an estimated cost of $1.5
billion.
A senior IAI source said that it was hard to disassociate El Al
failure to purchase Airbus planes from the European company's
decision about possible manufacturing in Israel. Sources at IAI
production plant said, “Airbus manufacturing decisions are
inherently political. Potential reciprocal procurements from Israel
would be a key factor in any decision.”
Airbus’s rejection of
IAI’s proposal contradicts statements from 1999 when Airbus
Industrie CEO Noel Forgeard discussed the subject with IAI
president and CEO Moshe Keret. Airbus Industrie COO Dr. Dietrich
Russell visited Israel to handle the negotiations.
Airbus Industrie chief commercial officer John Leahy said in
1999, “IAI can make parts for European super-jumbos similar
to those it makes for Boeing, i.e. fuselage parts, avionics, and
landing gear.”
Aviation industry sources said, “Airbus was unquestionably
displeased by El Al’s preference for Boeing planes. The
greatest ever opportunity for Israel’s aerospace industry to
participate in European projects would have been created if El Al
had chosen Airbus. Airbus expressed a willingness to make
reciprocal procurements amounting to 50% of the deal, but the
Israeli government deliberately blocked the
participation.”
Special thanks to ANN Contributor Dave Bender in Jerusalem,
Israel