page_title: Israel Aerospace Industries
section_title: 1990s onwards—export led growth
hierarchical_section_title: Israel Aerospace Industries / History / 1990s onwards—export led growth
caption_attribution_description: English: Shavit עברית: שיגור הלוויין אופק 7
context_page_description: Israel Aerospace Industries or IAI is Israel's major aerospace and aviation manufacturer, producing aerial and astronautic systems for both military and civilian usage. It has 15,000 employees as of 2018. IAI is completely state-owned by the government of Israel.
  IAI designs, develops, produces and maintains civil aircraft, drones, fighter aircraft, missile, avionics, and space-based systems.
  Although IAI's main focus is engineering, aviation and high-tech electronics, it also manufactures military systems for ground and naval forces. Many of these products are specially suited for the Israel Defense Forces needs, while others are also marketed to foreign militaries.
context_section_description: By 1989 IAI posted a profit of $11.8 million on sales of $1.28 billion. The company had four divisions—Aircraft, Aviation, Electronics, and Technologies—and 17 factories. IAI was established as a world leader in upgrading aircraft. Planes such as the Vietnam-era McDonnell Douglas F-4 Phantom II were modernized with advanced avionics and weaponry.
  In the 1990s IAI entered the space race with the AMOS communications satellites, Ofeq observation satellites and the Shavit space launcher.
  In December 1997, the IAI Galaxy, a business jet with an intercontinental range developed as a joint venture Galaxy Aerospace with the Hyatt Corporation, made its first flight and entered service in 2000. In May 2001, General Dynamics' Gulfstream Aerospace bought IAI's Galaxy Aerospace Co. L.P. unit for $330 million, although IAI continues to perform the most of the assembly and development of the jets which are marketed by Gulfstream.
  In 2003, Israel Aircraft Industries attempted to enter the VLJ (very light jet) Market by launching the Avocet ProJet, a 6–8 seat high utilization air taxi with a list price almost half the cost of the least expensive business jet available at that time. In early 2006, ProJet development stalled after a major undisclosed US OEM pulled out of the program due to unspecified reasons.
  The company was working with the Aviation Technology Group on a military trainer version of the ATG Javelin, a fighter style personal jet. The version being developed would have competed against a large field of jet trainers at a much lower cost of acquisition and maintenance. ATG halted development of the Javelin in 2008 due to a lack of funds.
  In March 2004 IAI signed a $1.1 billion contract with India to install three EL/W-2090 AWACS systems on Russian-made Ilyushin Il-76 transports, which are based in part on IAI's earlier EL/M-2075 Phalcon platform which was developed in the 1990s. In the late 2000s IAI developed the follow-on EL/W-2085 system which is installed on heavily modified Gulfstream G550 aircraft and which besides serving in the IAF were also sold to Singapore and Italy.
  On 6 November 2006, IAI changed its corporate name from "Israel Aircraft Industries Ltd." to "Israel Aerospace Industries Ltd."; to more accurately reflect the current scope of the firm's business activities, which includes not just aircraft, but also systems, satellites and launchers, as well as maritime and ground systems.
  On 13 April 2009, the Moscow Times reported that the Russian Defense Ministry had signed an agreement with Israel Aerospace to purchase $50 million in pilotless drone aircraft. The contract reportedly includes three types of UAVs manufactured by the company.
  In January 2012, IAI announced a sale of $1.1 billion of defense systems to an Asian country. The deal has been signed but the company did not name the buyer. It was reported that the sale will include IAI aircraft, missiles and intelligence technologies.
  On 4 September 2012, the Gulfstream G280, a new twin-engine business jet built by IAI, received full certification from the Federal Aviation Administration (FAA).
  IAI is a member of the prestigious Trace International and Society of Corporate Compliance and Ethics (SCCE) organizations and recognized in the Transparency International April 2015 report to be in the top third of worldwide defense companies for its ethics and anti-corruption programs.
  In April 2018, IAI systems were observed in a film made by the Azerbaijan Army, specifically the IAI Harop loitering munition system, resulting in criticism from the Armenian government concerning the supply of Israeli arms to the Azeri army. In 2019, IAI sells drone defense systems to governments to be placed in sensitive areas such as borders, army bases, or power plans, and provides equipment to shoot down military drones as well. It also sells to clients such as airports looking to protect against consumer drones. IAI in 2019 is Israel’s major aerospace and defense manufacturer. It released its Popstar system in September 2019, which "can detect and track drones up to 4 km away i
caption: An Ofeq surveillance satellite launch utilising the Shavit space vehicle
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