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How will 'Israel' finance its F-15IA fighter jets deal with Boeing?

  • By Al Mayadeen English
  • Source: Israeli media
  • 13 Nov 2024 23:48
3 Min Read

The latest deal raised questions about its financial structure, particularly as the total investment exceeds the annual US aid to "Israel" by $1.4 billion.

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  • Globes
    An Israeli air force F-15 war plane flies over during a graduation ceremony for new pilots in Hatzerim air force base near the southern city of Beer al-Sabe', occupied Palestine, on Thursday, June 29, 2023 (AP)

The Israeli Security Ministry's recent announcement of an agreement with Boeing to purchase 25 F-15IA fighter jets for $5.2 billion, with funding to be drawn from US military aid, raised several questions, primarily about whether US military aid to "Israel" would cover the latest procurement, the Israeli news website Globes reported Wednesday.

According to the Watson Institute at Brown University, the US provided "Israel" with $17.9 billion in military aid during the first year of the war, significantly exceeding the formal annual aid package of $3.8 billion that Washington has committed to Tel Aviv, the news website highlighted.

It noted that among the $3.8 billion annually in military aid—$3.3 billion allocated for procurement and $500 million for joint air defense projects—along with other grants provided each year.

Globes added that the Israeli Security Ministry has stated that delivery of the F-15IA fighter jets is expected to begin in 2031, with 4-6 aircraft delivered per year through 2035 under the most favorable scenario.

It pointed out that this raises further questions about the financial structure of the deal, particularly as the total investment exceeds the annual US aid to "Israel" by $1.4 billion.

So how will "Israel" finance the F-15IA deal?

The report suggested that payments to Boeing may be structured in installments.

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In this regard, Globes cited Moti Besser, who served as a financial advisor to the Israeli occupation forces Chief of Staff and headed the Ministry of Security’s budget division from 1997 to 2000, as saying that "Israel" is unique in that US security aid enables it to commit to long-term contracts based on project milestones.

Besser highlighted that while other parties must pay for defense products upfront before delivery, "Israel has a different model that has been built over the years and allows for funding to be deployed over a long period of time and to take into account existing and future sources."

He explained that when a $5.2 billion contract is spread out, it doesn’t deplete accumulated aid, but rather aligns with a multi-year funding flow that supports additional procurements.

It is noteworthy that since October last year, the Israeli Air Force has conducted relentless airstrikes in the region, killing more than 43,000 people in the Gaza Strip and more than 3,000 others in Lebanon, in addition to leveling civilian infrastructure.

Israeli aircraft have also been used in repeated assaults on Syria and Yemen, as well as Iran.

In late September, "Israel" received a new US military aid package totaling $8.7 billion.

Ido Nehushtan, president of Boeing Israel, pointed to the long-standing relationship with the Israeli occupation entity and confirmed the company's commitment to "working with the US and Israeli governments to deliver the advanced F-15IA aircraft through standard military procurement channels."

Read more: Many Israeli F-35 jets destroyed in Operation True Promise II: IRGC

  • United States
  • Israel
  • Israeli occupation
  • F-15
  • Gaza
  • boeing
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