THE ISRAELI parliament has approved a state guarantee for the $50 million loan which the US Prizcker family has pledged Israel Aircraft Industries (IAI) in return for gaining the marketing rights on IAI's new Galaxy corporate jet.
The deal with the family, which owns the Hyatt hotel chain, has been agreed for several months but has had to await for a loan guarantee approved by the Finance Committee of the Knesset.
In return for the cash injection, a Prizcker family-owned company will become a partner in a new company with IAI. This will replace Astra Jet in the USA as the marketing operation for the Israeli company's range of Astra SP, Galaxy and SPX corporate jets.
With the funding concerns out of the way, the first flight of the Galaxy has been scheduled for May 1997. The first two prototypes are under construction at IAI.
An earlier teaming arrangement with Yakovlev fell through.
Source: Flight International