For many years Israel Aerospace Industries (IAI) has been active as a manufacturer and exporter of business jets and a supplier of aviation aerostructures, components and subassemblies to major aircraft manufacturers.
Through its growth plan the Company is expanding its activities in the US, Asian and European markets, in the fields of aerostructures subcontracting, passenger-to-cargo conversions and Maintenance, Repair and Overhaul (MRO) services. Strengthening its commercial portfolio, IAI has signed a strategic agreement with Boeing, to explore opportunities for future contracting that could be worth several hundred million dollars.
IAI and Boeing have a 40-year history of working together. Currently IAI supplies Boeing with the empennage leading edge for the 777 as well as the pivot bulkhead, passenger floor beams and door surround details for the
To earn expanded work from Boeing, IAI is committed to sustain required levels of performance in areas including quality, delivery, cost, and supply chain management.
In the beginning of 2016 Boeing and IAI have signed a Strategic Agreement. Under this Agreement IAI has been awarded a new contract by Boeing to build the empennage leading edges for the Boeing 777X - the latest and most advanced wide-body aircraft in development by Boeing, expected to enter into service in 2020. IAI will build the 777X empennage leading edge at its Lod, Israel, manufacturing facility, with first delivery expected in the second half of 2017.
IAI was also awarded an extension of its existing contract for the 777 empennage leading edges through the life of the Programs.
The new contract for the 777X demonstrates a shared commitment by Boeing and IAI leaders to expand the strategic relationship between the companies, and also, represents Boeing's renewed vote of confidence in IAI. Working with the world's leading aviation giant serves as a stamp of quality for IAI's technological and aviation capabilities.
In 2015 IAI reorganized its commercial aircraft activities under the newly established Civil Aviation Organization that coordinates the activities of the company’s Commercial Aircraft Group and Engineering Group, which operates in both the civilian and defense fields. By establishing the Civil Aviation Organization, IAI created a center of knowledge and excellence that concentrates the company’s extensive experience in these areas. Civil aviation today accounts for about 30% of IAI's activities and company officials expect civil operations to increase in the future, reaching the level of IAI’s defense operations.
Coordinating IAI's civil aviation activities on a company wide basis allows the company to build and develop an efficient, unified strategy and make the most of the potential synergies between the groups. It enables IAI to streamline operations, reduce overhead and duplication across all operations.
IAI has continually invests in expanding its manufacturing lines, particularly in the field of composite materials, supporting orders from Boeing for a number of aerostructures for the Boeing 787 and 777 aircraft, creating potential opportunities for additional packages using the existing modern facility.
Company officials are also optimistic about obtaining subcontracts from other major OEM's, to which IAI has offered aerostructures elements as cost-effective alternative to current parts.