The Israeli air force will be able to trim the overall cost of its proposed advanced jet trainer aircraft deal by up to 35% thanks to the use of US export funding.

The two shortlisted aircraft in the Israeli contest - the Alenia Aermacchi M-346 and Korea Aeropsace Industries's T-50 - both use US-made engines and some US-sourced avionics, qualifying them for subsidies from Washington.

The funding mechanism will ease the direct burden on TOR, the joint venture formed by Elbit Systems and Israel Aerospace Industries, which will purchase the trainers and sell flight hours to the Israeli air force.

Source: Flight International