The national state-owned aerospace company competes with Boeing in an industry that is on the upswing.
At the height of the recovery of world tourism, Israel’s state-owned aerospace company taps into e-commerce growth. It does this by transforming passenger planes into cargo planes for Amazon and DHL.
To adapt, Israel Aerospace Industries sped up the process at the start of the pandemic and expanded its assembly line. At a cost of 35 million dollars, the company currently converts about 25 planes per year, against 18 per year before the coronavirus.
Boeing as the main competitor, the Israeli company fully immersed itself as a major player in the market. Their numbers continue to rise and they have reserved orders for the next four years.
“This is about the relationship between passengers, cargo and the pandemic”said Shmuel Kuzi, executive vice president and general manager of the company’s aviation division.
In 2023, IAI expects to convert Boeing 777 with the new work plant in Abu Dhabi. This is in part because of the US-brokered Abraham Accords, which favored agreements between Israel and the United Arab Emirates..
Beyond this, analysts say the exponential growth of remote purchases may level off with the pandemic slowdown. The other reasons are that inflation rises and people spend less time in front of computers.