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Israeli Manufacturers Win $150M Turkish UAV Contract (Updated)

02-Sep-2008 13:54 EDT

Related Stories: Air Reconnaissance, Contracts - Awards, Issues - International, Middle East - Israel, Middle East - Other, Other Corporation, Partnerships & Consortia, Sensors & Guidance, UAVs

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AIR UAV Heron Takeoff
IAI Heron
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In April 2005, Israel Aircraft Industries (IAI) and Elbit Systems won an estimated $150 million contract to supply unmanned aerial vehicles (UAVs) to the Turkish military.

The contract’s terms have been the subject of shifting reports, and the type of UAV was not specified in the official releases. Nevertheless, DID was able to lend clarity on both fronts. According to various sources, the contract involves 3 systems of 10 Heron aircraft each, plus surveillance payloads and ground control stations. Turkey’s local industry will provide sub-systems and services amounting to 30% of the contract.

Reports indicate that the UAVs have now been used in combat, but unspecified issues are creating delivery delays, and creating problems with the relationship…

  • Contract Arrangements and Participants
  • The UAVs
  • Updates [new]
  • Additional Readings and Sources

Contract Arrangements and Participants

TAI

A subsequent IAI/Elbit Systems news release several months later provided additional clarity:

“The contract is valued at $150 million and each company’s share will amount to approximately $75 million. The contract was signed in May 2005 between Israel UAV Partnership (IUP) and the Turkish MOD is entering into effect now.

IUP is an equally owned partnership between Israel Aircraft Industries (IAI) and Elbit Systems. IUP will act as the major subcontractor to TUSAS Aerospace Industry (TAI) for the program. The systems will be delivered to the Turkish MOD over a three-year period, and will be operated by the Turkish Armed Forces.”

Elbit Systems manufactures the Hermes family of tactical UAVs, as well as the smaller man-launched Skylark. IAI Harpy anti-radar attack UAVs are already in service with the Turkish armed forces. IAI also manufactures the popular Hunter; a Ranger UAV specially adapted for inclement European conditions; the close range I-VIEW UAV in service with Australia; the Searcher Mk. II; and the large Heron UAV.

The UAVs

AIR_UAV_Heron.jpg
Heron in India
(click to view larger)

The Israel-based Defense Update Magazine asserts that the contract is for IAI Heron medium-altitude, long endurance (MALE) UAVs. It will also include Elbit Systems ground systems, and appropriate payloads.

The Heron is capable of flying for more than 30 hours at a time, at altitudes exceeding 32,000 feet. It has a maximum range of about 3,300 kilometers and can carry a maximum payload weighing 250 kg/ 550 lbs. It is built to carry multiple payloads at a time for a variety of multiple missions, which can include electro-optical and thermal surveillance equipment, SAR radars for ground surveillance, maritime patrol radars and sensors, signals and other intelligence collection antennas and equipment, laser designators, and even radio relays.

Subsequent reports indicate that the Turks will be receiving an updated version of the Heron called “Shoval,” or “Heron 1,” to distinguish it from original models.

Updates

Aug 27/08: Looks like delivery delays are still an issue. Middle East Newsline reports that:

“Turkish industry sources said the General Staff has been displeased with delays by two leading Israeli defense companies. The sources said both the state-owned Israel Aerospace Industries and Elbit Systems have failed to meet deadlines in their UAV projects for Turkey.”

Note that none of the reports to date specify why the deadlines keep slipping. IUP is a joint industrial partnership involving Turkish firms as well as Israeli companies. The problems that have stymied delivery could lie on either side of that partnership, or on both sides.

Dec 29/07: A StrategyPage report claims that the problems with the Turkish UAV deal lie on the Turkish side of the industrial partnership:

“Turkish firms were to supply some of the components, like the cameras, and delivery was scheduled for October 2007. But the Turkish camera suppliers had some problems integrating their equipment with the UAV, delaying service until early 2008…. So the Israeli manufacturer made an interim deal to supply wholly Israeli Herons, along with support personnel, on a $10 million lease.”

Dec 27/07: The Israeli newspaper Ha’aretz reports that Turkey has begun using IAI’s Heron UAVs as part of its military operations against Kurdish PKK terrorists in northern Iraq. The report also quotes Turkish sources that claim IAI personnel are acting as field support contractors.

It adds that the Heron UAVs have had their delivery delayed by unspecified complications, annoying the Turkish military and leading to a $10 million interim lease of UAVs until delivery takes place. The first shipment was initially set for October 2007, but has reportedly been postponed until the spring of 2008. See also AP report.

Additional Readings & Sources

Note the changing parameters throughout.

  • Defense Update – Heron UAV. Notes Turkish deal.

(DID originally covered this on April 20, 2005. The original news article gave a figure of $200 million with 33% workshare, until Elbit’s news release came out a couple of months later with a $150 million figure. Further research pinpointed the UAV type, which had not been disclosed in the releases or in response to DID inquiries.)