DEFENCE

Workers plan to save Lavi

TEL AVIV
A plan prepared privately by some top officials of Israel Aircraft Industries in a desperate attempt to save the Lavi has practically no chance of passing the first hurdle, the Israeli Ministry of Defence, reports Arie Egozi. Prepared by a group of the Lavi project's top managers, designers, and engineers, the plan was circulated among Israeli Government ministers after Lavi's cancellation on August 30, but it appears that the ministers want nothing to do with Lavi after killing it off. The scheme mooted was to transfer one of the Lavi prototypes to the United States Air Force to evaluate its performance as a basis for the service's planned close-air support (CAS) aircraft. The second prototype would recommence its flight tests, on a limited scale, to serve later as a technology demonstrator for the Lavi's advanced avionics suite and weapon system. One of the officials involved in preparing the plan tells Flight: "By accepting our plan the USA would save five years of planning and a huge sum of money. We know that our aircraft suits fully the definition of the CAS aircraft the USAF needs to eventually replace its A-lOs". If the USAF accepted Lavi, Israel would gain part of the production Officially, IAI refuses to comment on the plan. "A group of our employees prepared a plan on a private basis. We know that, but nothing more," an IAI spokesman tells Flight. Menahem Shmul, IAI's chief test pilot, is familiar with the plan, and thinks it makes sense: "Knowing the Lavi, I can say that it can perform the mission of close air support, and in a broader sense that is very crucial in the [USAF's] European arena." Shmul adds, however, that he is very sceptical about the plan's
FLIGHT INTERNATIONAL,

prospects for success. "The only solid fact now is that the test flights were stopped, and I'm busy preparing the list of test pilots who will have to be fired. These are very bad days, both for me and my colleagues," says Shmul. IAI's management is also preparing its lists of some 3,000 employees who will be laid off (Flight understands that up to 6,000 of the 20,000 workforce will go eventually). The management of IAI was instructed by Defence Minister Yitzhak Rabin to freeze all dismissals. It appears that, even after the process gets the green light, it will be very slow, because the trade union committee at IAI will oppose any dismissals. Ministry of Defence teams are working flat-out around the clock to prepare working plans for the "IDF Alternatives". While publication of the plans is awaited, a fresh storm is brewing as other defence industries, such as Rafael, the Israel Armament Development Authority, expresses concern that IAI will get most of the contracts

involved in the IDF Alternatives package. The Lavi offset agreement between the USA and Israel will be extended for at least two more years as part of the American "compensation" following the termination of the project. The Pentagon planned to cancel the offset agreement, but reviewed its policy as a result of the Israeli decision. The offset agreement will allow Israeli companies to sell products worth $150 million a year to US manufacturers. The Pentagon wanted to cancel this arrangement, claiming that Israel "cannot enjoy both worlds"receive US FMS money and offset agreements. But as part of the USA's effort to help the Israeli defence industry, the decision was revised. In addition, the USA will allow Israel to use $400 million of the $1-8 billion annual FMS money domestically. That, also, is to ease the blow caused by the termination of Lavi. In the past only $300 million was allocated for use within Israel.

Turkey plans helicopter co-production

ANKARA
Turkey is considering the comanufacture of at least 700 military helicopters in a $5 5 billion deal. The project's goahead will depend on Turkey receiving additional military aid, probably along the lines of the $4 1 billion deal in 1983 which established the comanufacture of General Dynamics F-16s in Turkey. Although a number of manufacturers have had ongoing discussions with the Turks, no Request for Proposals has yet been issued. The investment would represent about 10 per cent of Turkey's GNP, and any progress on the proposal is likely to be delayed until after the Turkish election in early November. The Turkish Government has already identified Murted as a site for the plant.

Grumman reveals Sabre II for Pakistan

Grumman has completed a five-month feasibility study into a radical upgrade of China's Xian F-7M (Mig-21 Fishbed), with Western engine, radar, and avionics allied with a completely new forward fuselage. Known as Sabre II, the aircraft would replace 150 older Shenyang F-6s (MiG- 19s) in Pakistan Air Force service. No details of the Sabre IPs powerplant or systems have been released. The study is a co-operative effort by Grumman, Chengdu Aircraft Corporation, China Aero Technology Import-Export Company, and the Pakistan Air Force.

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19 September 1987