IAI Consolidates Civil Activities into +US$1 Billion Commercial Aviation Group


Israel Aerospace Industries (IAI) announced today is strengthening its commercial aviation activities by forming a single, business-oriented group that unifies six business lines currently distributed in different corporate activities. The activities that will be included in the new group currently contribute to about 25 percent of IAI’s turnover. Yossi Melamed, Executive Vice President & General Manager of Bedek Aviation Group was named General Manager of the new group.

The new structure will enable IAI to focus its activities to meet the unique challenges and opportunities of the commercial aviation market. The transformation is implemented at a time in which many countries bring home their manufacturing operations and are fighting aggressively for market shares, challenging IAI to sharpen its offering in defense and commercial aviation alike.

Currently, IAI is structured in six independent groups, each with a turnover of several hundreds of million dollars. The structural transformation establishes a single aviation group for all of IAI’s aviation businesses that will focus on four business lines:

1. Development and manufacturing of commercial and business aircraft;
2. Development and production of aviation assemblies and aerostructures;
3. Aircraft conversion and enhancement;
4. Aircraft maintenance.

The new structure will be organized according to business lines, as customary in similar leading corporations. Under the new structure, IAI will be better positioned to reinforce existing synergies between its various operations and will lead to significant operational streamlining, including coming out of existing unprofitable lines of business.

“IAI is undertaking a structural change process into a business-line-oriented structure that will strengthen our edge in the fiercely-competitive global markets in which it competes against giant multinationals.” Harel Locker, IAI’s chairman, said, “IAI has some of the world’s best human capital and technological capabilities and is well positioned to win more markets by focusing on our relative edge and clear business lines. The initiative approved today does exactly that.”