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Israel signs $2.5 billion F-16 deal

By Arieh O'Sullivan

JERUSALEM (September 7) - Israel signed a contract yesterday for the purchase of 52 F-16I fighter-bombers from American firm Lockheed Martin. The $2 billion deal follows the order for 50 Israel made two years ago.

The agreement was actually an amendment to the original deal, which gave Israel the option to purchase more of the planes.

The deal is for the same two-seat F-16I configuration as in the previous order, with deliveries expected to start in 2006 and end in 2009. Most of the funding will come from the nearly $2 billion in annual US military aid.

The F-16I is considered one of the most advanced fighter-bombers in the world and has been equipped with conformal fuel tanks that extend its range.

Israel has the largest fleet of F-16s outside of the US, and the plane makes up the backbone of Israel's fighter fleet. Egypt has the second-largest F-16 fleet.

Israel had announced during this summer's Paris Air Show that it was likely to go for the Lockheed Martin option for more F-16s. The first planes from the first order are expected to arrive in 2003. A public competition held by the Air Force recently chose the name "Sufa," or storm, for the new plane.

The agreement signed yesterday covers aircraft, logistics support, training, and other services.

"Israel's sixth acquisition of F-16s demonstrates their continued confidence in the F-16I to satisfy their future defense needs," Lockheed Martin president Dain Hancock said.

Lockheed Martin and defense officials said the new planes will include a number of systems produced by local companies.

Earlier this summer, the Defense Ministry announced it had chosen Pratt & Whitney to supply the engines.

The final assembly of the F-16Is will take place at Lockheed Martin's facility in Fort Worth, Texas

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