November 28, 2018 / 6:38 PM / 14 days ago

State-owned Israel Aerospace to partner with Boeing on potential aviation contracts

The Boeing logo is pictured at the Latin American Business Aviation Conference & Exhibition fair (LABACE) at Congonhas Airport in Sao Paulo, Brazil August 14, 2018. REUTERS/Paulo Whitaker

(Reuters) - State-owned Israel Aerospace Industries (IAI) said on Wednesday it signed an agreement with U.S. planemaker Boeing Co (BA.N) last week to cooperate on commercial and military aviation in Israel and some other markets.

As part of the agreement, Boeing is expected to provide IAI with contracts worth billions of shekel, relating to potential sales of its new tanker aircraft and other defense products.

Boeing last month entered into a “reciprocal procurement” partnership with Israel, agreeing to spend billions of dollars in the country over the coming decade if it wins major defense contracts.

That agreement called for Boeing to collaborate with Israeli industries for at least 35 percent of the value of any transaction it signs with the Israeli government.

The Israeli Air Force is evaluating the procurement of fighter aircraft, helicopters and tanker aircraft from Boeing that could be worth more than $10 billion.

Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty

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