The new version of the aircraft will be adapted in Israel for intelligence, observation, and light strike missions, with an emphasis on low operating cost, prolonged air endurance, and fast response. The choice of a durable, light, and simple-to-maintain platform provides a solution for the needs of the Gaza and Lebanon borders, where continuous aerial presence is required, but not necessarily supersonic interception or the operation of expensive fighter jets.

The approach led by Israel Aerospace Industries relies on rich experience in converting civilian platforms for military purposes – such as the Westwind (Shavit) that was converted into a maritime intelligence aircraft, the Eitam and Oron models, which are advanced intelligence aircraft based on Gulfstream business jets, the Arava, as a dedicated light transport aircraft, and the Kfir, and the Nesher before it, which were based on the French Mirage 5 plans, that were refined, developed, and produced by Israel Aerospace Industries. Especially remembered is the daring, unsuccessful attempt to produce an advanced and independent Israeli fighter jet, the Lavi, whose development was halted by the US administration.

In addition, many Gulfstream business jets were manufactured, developed, and assembled in collaboration with the IAI. The cooperation focuses on the production of specific models like the G280, whose development and production are carried out by IAI, and other models produced in the past, such as the G100 (Astra), which were designed by the Israeli side. The IAI is also a world leader in converting passenger aircraft, such as the 777, into cargo planes.

Video: The OA-1K Skyraider II / Courtesy

The integration of advanced Israeli systems into the new aircraft, such as open mission interfaces, encrypted communication, electro-optical sensor pods, and a dedicated doctrine, turns the platform into a modern tool capable of integrating into the IDF's operational network and providing constant awareness, fast response, and precise operational capability along the borders. The Blue Sky Warden is not a replacement for fighter jets like the F-35 or for an escort force, but a flexible addition to the aerial mix. It allows field commanders to monitor patterns, direct interceptions, and respond to changing targets, all without straining expensive fighter jets or luxurious drones. In fact, it returns the routine missions that take the most significant resources of the Israeli Air Force to cheap and reliable platforms.

Similar platforms exist in the international arena – the AT-802 from Air Tractor, the Brazilian Super Tucano (Embraer), the US OV-10 Bronco, and the IOMAX Archangel – all demonstrating the trend of using light aircraft, sometimes agricultural, that have been converted for strike and reconnaissance missions. On the heavier side is the US A-10 Thunderbolt II, which illustrates the challenge in preserving dedicated strike platforms against advanced threats.

In the US, a debate has been ongoing for years whether to keep the A-10, the slow but deadly strike aircraft, in service, or to prefer a small, high-capability fleet. Behind this argument is a fundamental dilemma: How to balance cost, flexibility, and survivability in an era where advanced air defense systems threaten the operational freedom of fighter jets. The choice of the US Special Operations Command of the military version of the Sky Warden, called the OA-1K Skyraider II, is a clear response to that problem. Even when it is inefficient to send heavy and expensive aircraft on a mission, it is still possible to achieve intelligence control and limited strike capability using a simple and cheap platform.

In Israel, the need is similar, but more geographically focused: not strategic superiority thousands of kilometers (thousands of miles) away, but a reliable presence along the border fence. If the Blue Sky Warden succeeds in this mission, it may become a significant tool in the IDF's toolkit. It will not be a glittering air symbol like the F-35 Adir or the Ra'am F-15I, but a diligent worker that will prevent dozens of small crises and save expensive flight hours.

Alongside its advantages, the Blue Sky Warden also has clear limitations: It is vulnerable to modern air defense threats and is therefore effective mainly in sectors where the aerial risk is limited. Its success depends on meticulous mission planning, quality intelligence, and wise integration into the overall array, while maintaining a high cost-benefit ratio. The choice of this aircraft continues an Israeli tradition of adapting existing solutions to changing operational needs, and combines advanced engineering capabilities with simple operational logic aimed at improving Israel's security efficiently and significantly.

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Israel Aerospace Industries and US defense giant Lockheed Martin announced the signing of a Memorandum of Understanding on Tuesday for collaboration in the field of integrated air- and missile-defense systems.

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"Under this collaboration, the companies will explore potential joint opportunities in areas such as research and development, production, marketing, and other activities," the American and Israeli defense giants said in a statement.

They added that "both companies will establish an executive steering committee and working groups for the implementation of this MOU and cooperation."

Boaz Levy, IAI president and CEO, called the development a "strategic agreement for us."

"Combining the development capabilities and the vast know-how of Lockheed Martin and IAI experience accumulated over the years in IAMD systems will create win-win opportunities for both sides," he said.

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Tim Cahill, senior vice president and head of global business development for Lockheed Martin, said his company aims "to expand our businesses around the world while delivering unmatched IAMD capabilities to our customers."

Lockheed Martin employs around 114,000 around the world. IAI is one of Israel's largest defense technology employers.

Reprinted with permission from JNS.org.

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A week after the discovery of the worst cyberattack in the history of the United States, which caused damage that still has not been fully assessed, it appears as if Israel is smug in the face of cyber threats.

For a few days now reports have been circulating that the Pay2Key hacker group has carried out an attack on the transportation and health ministries, and even on ELTA Systems, a subsidiary of Israel Aerospace Industries. When the IAI was asked about the matter last week, it responded that "the company operates advanced defense mechanisms and constantly scans its computer systems for threats."

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This hack didn't scoop any sensitive security or business information – at this stage, only Elta employees' user names. But the IAI continued business as usual. After claiming on Sunday that the Defense Ministry forbade them to discuss the issue, which only three days earlier they had denied ever happened, the IAI changed its tune and stated that the incident was being reviewed.

It would appear that officials in Israel have not yet realized that in 2020, information cannot be concealed. Certainly not information in the hands of the hackers, and they will decide when to publish it, and under what terms. What's worse, it's doubtful that officials have realized the dangers: with all due respect to the Start-up Nation, if US government computers and computers of the most sensitive agencies were hacked, Israel is just as vulnerable. A strong attacker who invests enough money and effort can penetrate plenty of targets and cause major damage.

Elta is not Shirbit. It is much more protected, but also has much more sensitive information. It is one of Israel's most unique and sensitive defense companies, and develops capabilities that no one else has, either Israel or abroad. Its radars are the most advanced in the world and are used, among other purposes, for Iron Dome and David's Sling, as well as other defense systems. They are a key element to the company's contribution to Israel's defense superiority, as well as its flourishing defense export sector.

But the problem doesn't end with Elta's internal information The company is linked to its customers – the most notable of which is the IDF – as well as to several other militaries worldwide, and their own sensitive information. In that aspect, it is a key link in the supply chain, making it a favorite target for hacker groups all over the world. As in the case of Amital, which supplied logistics services to dozens of companies in Israel, or the US company Solar Wings, attacking a supplier like Elta could give the attacker a bigger prize than they intended to secure.

On the face of things, Israel has been working on cyberdefense for years, and is supposedly very good at it. Evidence of that is that thus far, only a few serious attacks that managed to penetrate critical Israeli infrastructure or top Israeli companies. But it looks like those happy days are over. Whether it was the successful attack on Shirbit that proved that Israel is less protected than we thought, or whether the attackers' daring and capabilities have grown – we have recently seen a spoke in the number of attacks on Israel and Israeli companies.

Despite the natural tendency to ties everything to Iran, the reality is more complicated. The Iranians might employ a lot of hacker groups, although up to now they have yet to cause a major attack that led to significant damage (as far as we know). But there are also civilian groups with impressive capabilities that operate for money or enjoyment and could do a lot of damage here.

Russia and China – which constantly launch cyberattacks against US targets – could also operate in Israel for the sake of industrial espionage or defense, and it will be much more complicated to handle them. Israel would do well to be realistic about the issue. The ambiguity with which officials address cybersecurity was appropriate for other times, not the cyber era. If we don't adopt a policy of transparency and leadership, we will find ourselves chasing our attackers.

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During the exercise, Indian warships simulated complex threats and ran the Barak 8 system through a number of tests, in which it detected aerial threats and fired missiles at them in time.

Created by Israel Aerospace Industries in conjunction with Rafael, the Barak 8 represents one of the most significant Israeli defense exports in recent years. In 2018, IAI announced a mega-contract worth $777 million for the supply of long-range surface-to-air Barak 8 missile systems to seven Indian warships.

In the previous year, India awarded IAI with a mammoth $1.6 billion contract for the land version of the Barak 8 system.

Such contracts reflect Israel's major role as an exporter of defense technology and weapons systems to international clients worldwide. The extent of Israel's defense exports is apparent in annual sales figures.

In April, the Defense Ministry announced that defense sales to the international market surpassed $7.5 billion. A defense source told Jewish News Syndicate that this figure is considered "a significant success, as it is the second-highest level in the past decade and is reflective of a highly dynamic global market."

The highest annual figures came in 2017, when Israel sold $9.2 billion worth of defense products. In 2016, the figure was $6.5 billion.

Within the Defense Ministry sits the International Defense Cooperation Directorate, known by its Hebrew acronym, SIBAT. This directorate is responsible for building cooperation with existing and potential clients and formulating Israel's defense export policies.

Throughout the year, SIBAT and Israeli defense companies have signed dozens of major contracts – work that has contributed to the high figure of Israeli defense exports.

According to the Defense Ministry's breakdown of the figures, missiles and air-defense systems, such as the Barak 8 system, represented the largest chunk of sales in 2018 (24%). This was followed by UAV and drone systems (15%); radars and electronic warfare systems (14%); aircraft and avionics (14%); and land systems, ammunition and weapons stations (12%). Further down the list are observation systems (9%); intelligence, information and cyber systems (6%); command, control and communications systems (2%); and satellites and space (1%).

When broken down by region, Asia and the Pacific region lead the way in purchasing Israeli defense products (46%). This region is followed by Europe (26%), North America (20%), South America (6%) and Africa (2%).

These trends are well-represented by India's growing use of Israeli defense products, such as the Barak 8, which is also in service by the Israeli Navy.

Nimrod Sheffer, IAI's CEO and president, described India last year as "a major market for IAI, and we plan to … reinforce our positioning in India, also in view of increasing competition."

IAI collaborates with India's Defense Research and Development Organization (DRDO) and local industries in India to develop the Barak 8.

Such sales trends appear set to continue in 2019.

In late April, Israel's Globes business newspaper reported that the Indian Army plans to urgently purchase 240 Spike anti-tank missiles and 12 launchers made by Israel's Rafael Advanced Defense Systems.

And at the start of the year, India purchased another $93 million worth of Barak 8 medium-range naval air-defense systems.

"We have concluded another successful year of Israeli defense exports. Over the past year, we have signed dozens of contracts with various countries around the world," said Brig. Gen. (Ret.) Mishel Ben-Baruch, SIBAT director, in a statement.

Yiftah Shapir, formerly head of the project on Middle East Military Balance at the Institute for National Security Studies in Tel Aviv, said that Israel enjoys a number of "built-in advantages" when it comes to being a defense exporter.

On the technological level, Shapir said, "The connection in Israel between the user and the developer of defense systems is much closer than in Europe or North America."

The IDF's close ties with defense industries make Israel a cutting-edge laboratory for defense development. In addition, Israel is willing to cooperate with clients and let them produce some of the products on their soil, which European and American exporters do not allow, he added.

Clients such as those in the Asia Pacific region "always think ahead and see how they can develop their own industry and get the technology – technology that others will not give them, but Israeli exporters do," explained Shapir.

At the same time, he cautioned, the export market is inherently unstable due to the fact that any change of government in any state that imports Israeli defense goods can affect sales. Turkey, which was once a major recipient of Israeli systems, is one such example, he noted.

"The State of Israel specializes in the enhancement of land, air and naval military systems, and exports some of the most advanced technology in the world," Ben-Baruch added.

The high sales figures, he said, are "evidence of the desire of more and more countries to cooperate with the State of Israel, and a sign of their confidence in the excellent capabilities of our defense industries."

This article is reprinted with permission from JNS.org.

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The company was considering selling a minority stake publicly, but Lieberman ordered a halt to the preparations after Defense Ministry officials expressed concerns that outside investors might become privy to highly classified information, the report said.

According to the report, the freeze will remain at least until senior ministry officials complete a detailed review of the potential implications and risks of offering IAI shares to the public.

The Defense Ministry declined to comment on the report. An IAI spokeswoman was not immediately available.

IAI Chief Financial Officer Eyal Younian told Reuters in March last year that to help finance planned acquisitions by the company, the government needed to move ahead soon with plans to sell a 20% stake in the company on the Tel Aviv Stock Exchange.

Younian said the company needed to issue bonds or borrow money from banks and pay interest of 3% to 4%. An IPO would raise new capital, minimizing the need to borrow.

IAI has annual sales of about $3.7 billion and a backlog of orders exceeding $9 billion.

The 64-year-old company, which helped pioneer the development of military drones and produces satellites, missiles and radar systems, is planning to acquire companies and set up subsidiaries in countries including India and the United States, where protectionist policies demand that defense spending increasingly benefit local industry.

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