Italy & Israel: A Billion-Dollar Offer They Didn’t Refuse

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The Israeli Air Force has known since December 2008 that its fleet of A-4 Skyhawk jet trainers and light attack aircraft would leave service. It took until July 2012 to sign a contract for the Skyhawk’s successor, despite justifiable complaints from South Korea that the process lacked full professional formality. The first M-346 Master trainers should begin arriving in Israel around mid-2014, where they will be operated by the IAI/Elbit “TOR” joint venture as a public-private partnership service to the IAF. Italy’s M-346 eventually beat KAI’s supersonic T-50, thanks to a combination of air force evaluations, geo-political considerations, and countervailing industrial offers. For most countries, “industrial offsets” mean sub-contracting work in their country, sometimes even in sectors of their economy outside of the defense industry. Israel’s weapons industry is far more developed, however, and so their advanced trainer competition saw “industrial offsets” as the purchase of full-fledged Israeli weapons systems. South Korea was already a customer for Israeli radars, UAVs, and missiles, and was seen as the favorite thanks to their relationships and their jet. Italy was a much smaller customer, but relations between Silvio Berlusconi and the Jewish state had been good for a long time. By October 2011, […]

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