IAI's development has paralleled that of the State of Israel and the Company has been privileged to play a substantial role in the industrial, technological and economic progress of the country and its defense establishment. For it was the development of Israel and its defense and security needs that has brought IAI to its present dimensions, capability and numerous achievements.
Since its founding with 70 employees on the sand dunes of Lod Airport in 1953, Israel Aerospace Industries has answered the challenge of providing the most advanced technology and the highest quality products and services to its clients. As a result, the Company has developed extensive expertise and is a recognized world leader in a range of advanced technologies, including unmanned air vehicles, early warning systems, and anti-tactical ballistic missiles. Whether in aviation or space, telecommunications or systems development, this commitment has brought about the technological evolution of IAI.
Today, the Company is the largest industrial complex in Israel and by far the country's largest exporter, accounting for approximately 50 percent of Israel's defense exports in 1997.
In contrast to companies built around a production line, IAI was originally established as an "all-purpose service and supplies" outfit. Since budgets were extremely tight in the early days of the State, the most economical approach for the Israel Defense Forces (IDF) was to send its fighter aircraft and helicopters, engines and electronics systems for modifications, upgrades and improvements to IAI. These pioneering efforts in the field of refurbishment and enhancements have led to IAI becoming a world leader in this field.
Much of IAI's expertise was born out of necessity. The need for a jet trainer for the Israel Air Force was the moving force behind the decision in the late 1950s to produce the Fouga-Magister. The experience gained from this led to IAI striking out on its own with an Israeli designed and produced aircraft - the Arava short take-off and landing aircraft (STOL), which set the stage for the Company to move into production of IAI-designed commercial and military aircraft. This modest beginning has resulted in IAI becoming a globally-recognized leader in the development of military and commercial aerospace technology.
IAI's electronics capabilities, including the Arrow anti-tactical ballistic missile and the Ofeq observation satellite, grew out of the need to develop technologies to ensure Israel's long-term security. By applying military technologies to commercial use, IAI was able to design, develop and manufacture space platforms and related subsystems, including the AMOS communications satellite and IAI-developed space launchers.