Page 32 - AAA MARCH - APRIL 2019 Online Magazine

ing capabilities and to preserve the design and
manufacture capabilities built in the company
along the years. The sources added that the
company prefers a program that will enable the
full design and manufacture of a new business
jet “from scratch” but a “massive” participation
in an existing or future programme is also an
option.

The company source said that a new business
jet that will be designed and produced by IAI, is
a key for using the huge potential that in recent
years was not utilized fully. IAI is in a very critical
transition period where its board and senior
management, are trying to implement a new
overall strategy that will change the situation
characterized by big annual sales of all the
company’s’ products, a big backlog and very
small profits.

Could MRO be the Future?
IAI’s Bedek Division, now part of the com-
pany’s Aviation Group, last year signed an
agreement to serve as the maintenance and
overhaul center for the engines of the Chinese
HNA Group. According to the agreement, the
engines are sent to IAI by the customers and
returned to China following servicing. The sign-
full control of the government, has been questioned many times. ing of the agreement, which is estimated at tens
Answers were not given. But while there is some sense in a situ- of millions of dollars a year, was held at HNA
ation where a defence company is controlled by the government, Group headquarters in Haikou.
especially in a country like Israel, it does not make sense that the
civil activities, like maintaining passenger and cargo aircraft con- In recent years, the Bedek division expanded
verting passenger aircraft to cargo carriers, and engine leasing for its aircraft engine services. Late last year the
airlines will be in the hands of the government. division added the V2500 engine to the list of
engines maintained and overhauled in its facili-
A New Approach ties. International Aero Engines AG (IAE) and IAI
The understanding that there is a problem brought to the formation have earlier this year signed a 10-year general
of IAI’s new aviation group. The new group that started to operate terms agreement for maintenance of V2500
in January, is intended among other things, to accelerate the com- engines at IAI’s Bedek, Engine Department.
pany’s effort to become a partner on the design and production The department performs the maintenance of
of a new business jet. The development of a new version of the a large variety of engines such as the JT9D,
Gulfstream G-280 is one option evaluated by Israel aerospace CFM56-3/5/7, PW4000 and others.
industries (IAI) to increase the production rate of the G-280 cur-
rently manufactured by industries (IAI). Earlier this year the Aviation Group announced
that it is expanding its “On Wing Support” ser-
The plan to manufacture different types or new versions of cur- vices in different parts of the world. According
rent products, is part of IAI’s strategy to increase the sales of to IAI with special teams it can provide sup-
its business jet department, part of the company’s new aviation port within 24 hours anywhere in the world. The
group. The general agreement with Gulfstream is part of the U.S on-wing support includes systems like APU’s
Company’s effort to keep the G-280 production line in operation. and landing gear in addition, the Aviation group
The agreement has been approved as IAI is in different stages of has recently started an operation based on
negotiations with some “potential partners” for other classes of buying old aircraft engines, overhauling them,
business jets. The current agreement with Gulfstream, is about and selling them. The new aviation group is also
mid-size executive jets. The efforts now are to find a manufacture leasing engines to airlines who prefer to lease
that will use IAI’s design and testing capabilities of aircraft sections. engines than purchase them for a period of
two to three years. The new department cur-
Sources said that another programme in the business jet market rently offers three types of engines CFM/3/5/7,
is “a must” in order to increase the income generated by the exist- V-2500 and PW 4000.

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