Israel has renewed efforts to win a contract to supply Turkey with a surveillance satellite. The move follows the Turkish Government's cancellation of the purchase of a surveillance satellite from French manufacturer Alcatel.
Turkey says that its cancellation of the contract is in response to the French Parliament's comments on the massacre of the Armenian minority by Ottoman Turks 85 years ago. But Turkish sources say that the real reason is Alcatel's failure to meet the Turkish demand for wide-ranging offset and technology transfer as part of the deal.
Israel Aircraft Industries (IAI) was informed last July that it had won the contract with a $270 million bid. When news of the IAI win was leaked to the Turkish press, losing bidder Alcatel protested to the Turkish Ministry of Defence requesting approval to submit a new price. After negotiations the Turkish Government accepted Alcatel's $249 million offer.
The competition has now been reopened, with IAI and Lockheed Martin seen as likely bidders. Israel's chief of general staff Gen Shaul Mofaz will visit Turkey later this month, when he is expected to push the IAI bid for the contract to the Turkish defence minister. Israel is also expected to offer Turkey access to its first civil satellite, Eros 1, until it has its own in orbit.
Source: Flight International