March zb, zO1J iviii ?J www.dofonsonows.

com
7
hilo critical war offorts in
Afghanistan must bo pro-
toctod fromtho upcoming
budgot cuts, this doos not moan all
Afghan programs aro sacrosanct.
For instanco, tho rocont $6OO mil-
lion cancollation of tho Afghan C-z7
programindicatod that tho U.S. Air
Forco's plans, and tho Afghan Air
Forco's capa-
bilitios, may
bo grossly mis-
matchod.
Whon tho
U.S. Air Forco
was soloctod
to montor tho
Afghan Na-
tional Army
Aviation
Forco, thoy
found thoy
woro support-
ing aircraft
thoy could not
fly thomsolvos,
namoly tho
Russian Mi-17
and Mi-Jb holi-
coptors, tho
Ukrainian An-Jz transport aircraft
and Czoch L-J9 light jot.
FromzOO9 to zO1z, howovor, a
numbor of docisions woro mado to
croato a nowAfghan Air Forco
fromtho ground up. Atraining floot
consisting of tho Cossna T-1SzT,
tho Cossna zOSBand tho MD-bJO
holicoptor was purchasod. Tho Mi-
17 was to bo givon a Wostorn cock-
pit familiar to U.S. Air Forco pilots.
Tho Ukrainian AN-Jz transport air-
craft was phasod out and roplacod
with tho C-z7. Tho Russian Mi-Jb at-
tack holicoptor is to bo roplacod
with tho rocontly awardod Embraor
A-z9 Supor Tucano light attack air-
craft.
Thoro is no doubt oach of thoso
nowplatforms could ovontually
incroaso tho capability of tho
Afghan Air Forco. Howovor, tho im-
modiato rosult is an Afghan Air
Forco flown by U.S. instructor pi-
lots and almost oxclusivoly main-
tainod by U.S. dofonso contractors.
Equally significant, thoso docisions
havo rosultod in an annual oporat-
ing bill tho Afghans can novor hopo
to pay thomsolvos. Unloss tho U.S.
intonds to spond hundrods of mil-
lions annually to support this floot
for docados to como, thoro noods to
bo a full roviowof tho supportabili-
ty of tho choson plans and plat-
forms.
Such a roviowwould rovoal thoso
basic facts:
FTho Afghans' aircraft mainto-
nanco group can support approxi-
matoly 4O porcont of tho curront Mi-
17 floot and nono of tho othor air-
craft. Tho curront maintonanco
training programwill not affoct this
situation for yoars.
FIt is loss oxponsivo to train
Afghan flight crows in Contral Eu-
ropo or tho Middlo East than to pur-
chaso a training floot and staffing it
with U.S. contractor flight instruc-
tor and maintonanco porsonnol.
FTho Mi-17 was choson for tho
Afghans bocauso it was tho aircraft
thoy had oxporionco flying and
maintaining. Yot tho Wostorn cock-
pit installod by tho U.S. Army un-
dorminos this argumont, adds moro
than $J million to tho cost of oach
aircraft and croatos a hybrid that
will cost bO porcont moro to ovor-
haul. Sticking with tho standard
Russian cockpit in nowMi-17s and
tho logacy floot will savo moro than
$11O million in tho noxt two yoars.
FEvon had tho purchasod C-z7
aircraft boon flyablo, tho high cost
of parts and tho roquiromont for
long-tormWostorn maintonanco
support would havo ovontually
doomod tho program. Tho currontly
proposod C-1JO, howovor, is an
ovon worso choico. Tho C-1JO costs
moro to purchaso, maintain and op-
orato than tho C-z7. Tho black mar-
kot in Iran for C-1JO parts will un-
dormino offorts to koop C-1JOs fly-
ing in Afghanistan.
Instoad of anothor oxponsivo
Wostorn aircraft, tho U.S. should ro-
turn tho Afghans' fivo mothballod
An-Jz transports to sorvico. Ovor-
hauling and oxtonding tho livos of
tho An-Jz floot will cost $1z million,
about a quartor of tho cost of a sin-
glo C-1JO. Equally important, tho
Afghans can actually fly and main-
tain tho An-Jz.
FTho light attack aircraft is tho
wrong choico, too littlo and too
lato. Tho idoal platformfor
Afghanistan would bo a crop
dustor-typo aircraft with commor-
cial avionics capablo of landing on
a dirt strip.
Instoad, tho soloctod aircraft has
a hoads-up display with an intograt-
od avionics suito, ojoction soats, ro-
tractablo landing goar, prossurizod
cockpit and acrobatics capability,
and it noods b,OOO foot of improvod
runway. Tho Afghans will not bo
flying this aircraft for yoars, cannot
hopo to maintain it or afford parts
for it, and havo no closo air support
programwith which to uso it.
Furthormoro, if tho roquiromont
for a CAS-typo aircraft actually ox-
ists in tho Afghan Air Forco, zO
Afghan aircraft would only sorvo as
a symbolic roplacomont of our
forcos (tho Coalition flowz9,94S
closo air support sortios in
Afghanistan in zO1O).
Tho light attack aircraft program
should bo haltod at 1O aircraft, and
tho aircraft should not bo donatod
to tho Afghans. Instoad, tho U.S. Air
Forco should uso thomas part of an
intornal study to dotormino if a tur-
boprop CAS aircraft is a viablo al-
tornativo to a jot in a lowor throat
onvironmont. This will savo $bOO
million in tho noxt two yoars.
Tho U.S. Air Forco has a history
of dovoloping roquiromonts for
aircraft moro capablo than tho
Afghans nood, moro complox than
thoy can hopo to oporato and main-
tain, and impossiblo for thomto af-
ford aftor our doparturo. Introduc-
ing C-1JOs and a light attack aircraft
into tho Afghan floot will only divort
rosourcos fromalroady strotchod
programs and mako achioving tho
goal of Afghan solf sufficioncy
moro romoto.
In rosponso to roalitios in thoator
and tho oconomic condition in tho
U.S., tho U.S. Air Forco should
mako tho ability of tho Afghans to
sustain a platform, with minimal
U.S. financial and tochnical sup-
port, a dotormining factor whon
choosing aircraft for donation.
Rethink Alhan Air Icrce
Hininize Ccst, Ccnplexity
b] Nark Yoaag, t|e
pres|dert of 0eferse
Iec|ro|og],
hurts|||e, A|a., a
corpar] pro|d|rg
a|at|or support
ser|ces to t|e u.S.
goerrrert |r
Afg|ar|star.
|s|rit|
8, 88I4N 85IIN
w45hIN0I0N As an Iranian F-4 fightor jot
trailod a U.S. Air Forco MQ-1B Prodator last
month, words of warning camo from an unlikoly
sourco: pilots of two U.S. fightor jots oscorting tho
unmannod aircraft.
Tho fightors woro protocting a U.S. assot that
has bocomo critical to tho war in Afghanistan for
its ability to monitor and zoro in on targots with-
out risking pilots' livos. Tho unmannod Prodators
flown by tho Air Forco to porform intolligonco,
survoillanco and roconnaissanco also aro far loss
oxponsivo than thoir mannod countorparts.
So why would tho U.S. military put up two fight-
ors that cost at loast $zO million apioco to onsuro
tho safoty of a $4 million Prodator? Evorything
about that ovont and othors liko it is shiold-
od in oporational socurity, according to U.S. Con-
tral Command.
Tho docision to oscort unmannod aircraft is
mado on a caso-by-caso basis doponding on tho
mission, location and intolligonco assossmont,"
said Army Lt. Col. T.C. Taylor, a spokosman for
U.S. Contral Command (CENTCOM).
Taylor doclinod to say whon tho flights bogan or
how ofton thoy occur. Howovor, last Novombor
two Iranian Su-zb fightors attackod a Prodator,
which is unarmod, ovor intornational wators, fir-
ing two soparato gun bursts at tho drono. Tho Pon-
tagon did not say whothor tho Prodator was os-
cortod, only that wo rosorvo tho right to protoct
our military assots as woll as our forcos and will
continuo to do so moving forward."
Contral Command did not discloso what assots
or basos aro boing usod in tho oscort flights. Air
Forco fightors aro stationod at noarby basos in
Southwost Asia, including F-zz Raptors from tho
Jrd Wing out of 1oint Baso Elmondorf-Richard-
son, Alaska. Tho air wing attachod to tho aircraft
carrior 1ohn C. Stonnis also is doployod to tho
Navy's bth Floot in tho rogion.
U.S. military prosonco supports stability and
socurity throughout tho CENTCOM aroa of ro-
sponsibility," Taylor said. Our prosonco in intor-
national wators and airspaco is part of standard
oporations in tho [aroa], to includo routino sur-
voillanco."
Doploying mannod assots to protoct unmannod
aircraft makos sonso bocauso whilo tho Prodators
aro choapor than mannod fightors, thoy still cost
millions of dollars, a rotirod Air Forco official said.
Comparod with tho MQ-1B prico tag of about $4
million, an F-16Ccosts approximatoly $zO million,
and tho nowor F-zz is about $14J million.
Showing tho musclo of armod, mannod aircraft
also sonds a mossago to Iranians that tho assots
will bo protoctod. Iran has mado high-profilo stato-
monts about Amorican survoillanco aircraft, fa-
mously displaying a capturod RQ-17O Sontinol
that wont down noar tho bordor with Afghanistan.
Obviously thoro is a hugo irony, on many lov-
ols, to fightor pilots now oscorting unmannod
dronos," said Potor Singor, tho diroctor of tho Con-
tor for z1st Contury Socurity and Intolligonco at
tho Brookings Institution. But tho roason is not
so much about valuing tho machino moro than tho
man, but rathor about sonding a mossago to tho
Iranians: Stop mossing around with our stuff.
lra||: beerst|re0r|||tar]t|res.cor.
|rtttttis
!lt |rti+ttr
u.S. AlR l0R0l
Need|ag aa scort: Ar V- lredator urrarred a|rcraft prepares for ta|eoff |r support of operat|ors |r
Sout|West As|a. Ar lrar|ar f|g|ter jet trac|ed a lredator recert|] before be|rg Warred off b] u.S. f|g|ter jets.
|sttrtitw
?? |t|tsstKtws March zb, zO1J www.dofonsonows.com
Q. what's |t ||ke to he |ear|ag the oa|,
emp|o,er ,oa're erer kaowa?
A. Intorostingly, I'vo novor had to
proparo a rsum. I finishod in tho
military and was a farmor until ago
Jz, whon I camo to Elbit. And it
was ono of thoso fortunato coinci-
doncos that ovory timo my rospoc-
tivo bossos loft, I movod in to
roplaco thom. So I supposo I fool
moro obligatod than most to do
tho typo of moticulous planning
that will onsuro a succossful
doparturo and a smooth transition.
Q. Yoa're heea groom|ag |h|t laad
S,stems esecat|re 8etta|e| 8att|"
Nach||s, ,oar haad-p|cked saccessor,
for some t|me, ,es?
A. Wo'vo boon joinod at tho hip for
four months now. Wo proparod
togothor a budgot and a stratogy,
and latoly ho's boon running man-
agomont mootings. Butzi has a
doop undorstanding of tochnolo-
gy, tho oporational onvironmont
and a broad managorial porspoc-
tivo. All of us from our chair-
man, Mickoy Fodormann, on
down havo full confidonco that
ho'll bring Elbit a vory good yoar
in zO1J and tho yoars to como.
Q. look|ag hack, was there a s|ag|e
coatract or ereat that ,oa cred|t for
|h|t's traasformat|oa |ato a top-t|er
defease e|ectroa|cs f|rm?
A. Tho turning point was our pur-
chaso of tho Eloctronic Manufac-
turing Contor [EMC] from
Gonoral Dynamics. Wo woro tho
first in Israol and among tho first
intornational companios in tho
world to undorstand tho impor-
tanco of having an industrial pros-
onco in tho Unitod Statos. Wo
undorstood wo couldn't just pro-
duco thoro, wo had to bocomo an
Amorican firm, with all tho rights
and privilogos that ontailod.
Q. whea was that?
A. Wo signod tho doal with Gordon
England on Fob. 1b, 199J, tho
samo day [Gonoral Dynamics' Fort
Worth Division] was sold to Lock-
hood. Wo startod with loss than
$JO million, addod onginooring,
our own tochnology, markoting
and ovontually changod tho namo
to Elbit Systoms of Amorica.
Today wo do moro than $1 bil-
lion in annual work on Bradloys,
Apachos, Black Hawks, F-Jb, F-
16s, F-1bs, V-zz, [multiplo-launch
rockot systoms], lasor, thormal,
you namo it. Wo'ro connoctod to
all tho big primos.
A fow yoars ago, an Amorican
colloaguo told mo pooplo no
longor ask, Who is Elbit?" Thoy
ask, Did wo call Elbit?" That's
tho transformation.
Q. Is that the temp|ate ,oa're as|ag |a
8rat|| aad other target markets?
A. Protty much. Wo'ro fulfilling
oxpoctations, supplying jobs, pro-
viding tochnology and domonstrat-
ing wo'ro thoro for tho long haul.
Whon wo camo to Brazil 1b yoars
ago, no ono was thoro. Our acqui-
sition of Aorooloctronica [AEL]
was basod on our oxporionco in
Fort Worth. Wo invostod hoavily
until tho businoss startod to boar
fruit. But now, wo aro tho largost
multidomostic firm in a vory
vibrant markot with total salos of
hundrods of millions of dollars.
Q. S|ace the 2000 acqa|s|t|oa of |op
aad sahseqaeat strateg|c ha,s, ,oar
portfo||o has espaaded to |ac|ade
04ISk, groaad s,stems, tra|a|ag aad
s|ma|at|oa, aad c,her. what's ,oar ra|e
for rat|oaa||t|ag the rar|oas sectors?
A. Wo want to bo among tho
world's top throo in ovory soctor
wo ontor and ovory nicho tochnol-
ogy wo chooso to dovolop. If
wo'ro not thoro aftor a roasonablo
amount of timo, wo'll oithor drop
tho offort or do somothing drastic
to got us in tho top tior. If you'ro
not in tho top throo, you'ro just a
commodity.
Q. ow |oag |s a reasoaah|e per|od of
t|me?
A. Usually, things tako about fivo
yoars to provo thomsolvos.
Q. Naa, here r|ewed ,oar receat fora,
|ato radars as cost|, aad redaadaat,
g|rea that IAI's [Israe| Aerospace
Iadastr,'s] |ta |s Israe|'s pr|ac|p|e
radar pror|der.
A. Radars do, indood, roquiro
onormous invostmont. But wo
soloctod a vory limitod nicho soc-
tor of tactical dotoction radars for
land applications, which will
complomont othor aroas of our
portfolio. Wo just introducod this
last yoar, so wo'ro cloarly not yot
among tho top throo. But I boliovo
wo'll got thoro, and onjoy tho syn-
orgy it brings to our systoms-of-
systoms approach. But I must
omphasizo, wo don't want to bo
mo, too." That's not our concopt.
Q. Ioda,, |h|t |s kaowa wor|dw|de for
|ts uAVs, aaother sector |oag moaopo-
||ted h, state-owaed IAI. wasa't that a
case of me, too"?
A. It's truo that zO to JO yoars ago,
IAI had tho monopoly on UAVs.
But wo took a stratogic docision
to ontor into this fiold. Whon wo
informod tho authoritios horo wo
wantod to compoto, nobody took
us soriously. But wo acquirod a
small company callod Silvor
Arrow, which wo purchasod
togothor with Elop. Wo studiod
what tho Israol Dofonso Forcos
was doing. It took a fow yoars,
but ovontually wo camo up with a
compolling proposal tho Hor-
mos 4bO which today forms
tho backbono of tho unmannod
invontory in Israol, Britain and
othor countrios.
Q. Yoa a|so e|howed |ato the |arger
c|ass of uAVs w|th the se|f-faaded
ermes 000? A h|gh-r|sk gamh|e, |a
retrospect?
A. Aftor tho amazing succoss of
Hormos 4bO, wo startod to work
on tho noxt gonoration. No ono
wantod to go with us, but wo
I!||K |K|KMK
President and CL0, Llhit Systens

ftor loading Elbit Systoms from a local avionics upgrado firm to a

global aorospaco and dofonso ontorpriso with subsidiarios or
joint vonturos in noarly zO countrios, 1osoph Yossi" Ackorman
rotiros April 1.
During his 17-yoar administration, Elbit's annual salos grow by an ordor
of magnitudo, from $z86 million in 1996 to oxactly $z.86 billion, according
to zO1z yoar-ond financial figuros roloasod March 1J.
Through a morgor-and-acquisition doctrino whoro ono plus ono must
oqual moro than two," Elbit now claims somo 9O porcont of Israol's
nonstato-ownod dofonso soctor. It also pridos itsolf on tho rapid growth
of its socond domostic markot," whoro Fort Worth, Toxas-basod Elbit
USA turns ovor an annual $1 billion and omploys somo 1,8OO in 14 U.S.
locations.
Aftor J1 yoars with tho company, Ackorman plans to dovoto his timo to
farming, family, philanthropy and study. But ho'll romain ongagod through
his now rolo as vico chairman of Elbit's board.
|M|K |K||||
workforce: !2,5JJ
20I2 f|nanc|a| resu|ts:
F 5a|es: $2.8c |||||c|
F ear-end back|og: $5. |||||c|
F 0ross rof|t: $8!5.9 |||||c|
Ke, bus|ness sectors: A|||c||,
|+|J, C4lSR, |||ccp||
Ke, markets, |n order of 20I2
sa|es: |c||| A|||+, A|+
P+|||, Eu|cp, l|+|, |+|||
A|||+
Scu|. || |W |+||
ASSAl Shll0/lSRAll Su|/llblI S\SIlVS
docidod thoro was no timo to
wait for a customor. It was
oxtraordinary in tho world of
UAVs to go ahoad and do it on
our own. Wo built only ono proto-
typo and flow it all tho timo. Obvi-
ously, wo woro scarod to doath
that somothing would happon to
it. But onco wo oarnod customor
confidonco, wo woro ablo to roap
rowards for our risk.
Q. what's aest? 0o ,oa p|aa to go for
erea h|gger reh|c|es ||ke the u.S.
Areager or IAI's eroa IP?
A. Tho minuto you montion thoso
othor systoms, it moans you'ro
looking backwards. That's tho
opposito of our thought procoss.
Wo'ro now thinking what tho
futuro noods will bo, and that will
dictato our diroction. But it cor-
tainly won't bo in tho diroction of
tho namos you citod.
Q. |h|t's jo|at reatare w|th IAI oa
aamaaaed groaad reh|c|es [u0Vs]:
Shoa|d |t get ased |f |t fa||s to meet
,oar f|re-,ear, top-three ra|e?
A. First of all, it's not yot fivo
yoars. Socondly, wo alroady aro
among tho world's top throo, it's
just that thoro's no world yot out
thoro. I think wo woro ahoad of
tho markot by about a docado.
Thoro's a lot of intorost, but no
firm oporational roquiromonts.
Q. wh, aot?
A. Armios around tho world still
don't undorstand what to do with
this capability. And to bo fair, it's
much oasior to oporato an
unmannod vohiclo in tho air than
on tho ground. So wo docidod to
givo it anothor two or throo yoars
of broathing room to soo what
dovolops. Moanwhilo, wo'ro con-
tinuing to domonstrato thoso
UGVs and oxplain thoir addod
valuo. You can soo thom oporat-
ing along tho bordor with Gaza.
Q. 0esp|te he|ag the aad|spated dr|rer
of Israe|| defease |adastr, coaso||da-
t|oa aad tremeadoas persoaa| effort,
,oa aerer maaaged to crack the code
for pr|rat|t|ag the state-owaed sector.
0|sappo|ated?
A. I won't dony that I was among
tho loadors in tho Israoli dofonso
industry pushing for an ond to
tho bloat, rodundancios and
countorproductivo compotition
of our industry. For many long
yoars, I'vo mot with ministors,
govornmont authoritios and my
colloaguos on this issuo. Thoro's
no disagroomont, wo all boliovo
tho local dofonso industry must
undorgo somo typo of rationaliza-
tion. Yot it hasn't happonod.
Q. wh,?
A. Politics, porhaps. But whoro I
could influonco things, consolida-
tion happonod with groat succoss.
All tho companios wo acquirod
rocognizod that if thoy had to go
it alono, thoy wouldn't havo sur-
vivod. It's too small horo no
critical mass. And tho fact that wo
bocamo tho largost dofonso firm
in Israol and provod that a compa-
ny that is not govornmont-ownod
can bo ontrustod with tho most
sonsitivo, advancod dofonso toch-
nologios hopofully will pavo tho
path to what wo all agroo must bo
dono in tho futuro.
Q. Israe| |ost a ra|aah|e market |a
Iarke, orer po||c|es r|s-a-r|s the
Pa|est|a|aas, ,et |ts |adastr, thr|res
oa capah|||t|es prorea |a perpetaa|
coaf||cts w|th |ts ae|ghhors. Irom a
pare|, has|aess perspect|re, what's
preferah|e: war or peace?
A. Obviously, for our childron, wo
want poaco. But also for our
industry, poaco is proforablo. In
wartimo, many nations want to
disassociato from us. Whon war
is raging horo, thoro's no busi-
noss. But a promising atmos-
phoro for poaco is propitious for
oxpanding cooporation and forg-
ing now tios. But what shall I toll
you, wo'ro horo in Israol. It's a
tough noighborhood.
b] 8arhara 0pa||-kome |r Ie| A|.