Spacecom and Israel Aerospace Industries Signed a Purchase Agreement for Amos-6 Satellite; Deal Estimated at $195 Million

Nov 13, 2012

Amos-6 to replace Amos-2 satellite and will cover wide areas in the Middle East, Europe and Africa

The satellite is expected to operate in space for at least 16 years

Delivery date - by August 2015

 




Joseph Weiss, President and CEO of IAI (left) and David Pollack, CEO of Spacecom (right) signing the Amos-6 satellite agreement


Joseph Weiss and David Pollack raise a toast for the new agreement between the companies

Israel Aerospace Industries (IAI) President and CEO, Joseph Weiss, and Spacecom CEO, David Pollack, have signed yesterday 12/11/2012 an agreement for the design, production, preparation for launch and operation of the Amos-6 satellite. The deal's worth is estimated at some $195 million.

Amos-6 is intended to significantly expand the variety of communication services provided by Spacecom to the international market from the orbit slot 4° West, and to replace Amos-2 satellite, which is expected to end its service during 2016. Amos 6 will operate in parallel to Amos-3 satellite.

Amos-6 embodies IAI's capabilities in developing communication satellites. Significant technological enhancements have been introduced in Amos-6, making it one of the world's most advanced communication satellites. The satellite's enhancements include the integration of electric propulsion technology, which enables significant savings in the satellite's launch weight and costs. With Amos 6, IAI enters to the field of large communication satellites with launch weight of 5,500 kg and payload power of 9,000 Watts. The communication payload includes 45 transponders in three frequency bands - Ku, Ka and S, which enable the satellite to provide a variety of communication services, including direct satellite home internet services.

IAI is now in the process of producing two communication satellites in parallel: Amos-4, which will be launched next year, and Amos-6.

In addition, the sides agreed that:
• IAI will produce for Spacecom the Amos-6 satellite with its delivery date planned by 1 August 2015.
• Amos-6 will include: 39 segments in the Ku-22 frequency band, covering the Middle East, Eastern Europe and Pan Europe, 24 active beams in the Ka-19 frequency band, covering areas in Africa and Europe, and two transponders in the S-4 frequency band.
• The satellite is designed to serve in space for at least 16 years.
• Providing the "ready to launch" satellite earlier than the agreed upon date will entitle IAI to an early delivery bonus of up to an additional $3 million (depending on how early the delivery is). Delays to the "the ready to launch" satellite (which are not the result of Spacecom, the launch company or force major), will result in reduction of the satellite's price by an accumulated sum of up to $10 million.
• Amos-6 service in space exceeding 17 years will entitle IAI for a bonus for each year of operation after the 17th year, at a rate of 20% of every sum that Satecom receives from Amos-6 customers, during each additional year of operation (or relative portion in case of less than a year).

In addition, it should be noted that Spacecom signed an agreement with the government of Israel for provision of services via the Amos-6, for the duration of the life of the satellite, for the total amount of $20 million. The company will allocate for government use, for the lifetime of the satellite, the transponders and rights to use a beam in an agreed upon frequency band, and will provide to the government associated services.

David Pollack, CEO of Spacecom said: "The signing of this agreement with Israel Aerospace Industries expresses our confidence in IAI's capabilities in space, and it is a significant milestone in the business development and growth of Spacecom. The Amos-6 satellite further strengthens the technology might of the company, improves its satellite capabilities and opens new channels and markets around Europe, Africa and the Middle East for many years."

Joseph Weiss, President and CEO of Israel Aerospace Industries said: "Winning the Amos 6 tender over international competitors is of strategic importance to IAI and allows us to continue the advancement of the space area in Israel and in particular Israel's line of communication satellites. We would like to thank Spacecom for its vote of confidence in IAI's capabilities, as well as in our intention to continue and supply high performance and reliable communication satellites as IAI have been supplying in all of our previous satellite programs. Signing the Italian satellite contract, in addition to signing on Amos-6, propels the Israeli space industry to new peaks and strengthens Israel's position as an expert nation in the fields of satellites' launch and advanced technologies.

In the pictures:
1. Joseph Weiss, President and CEO of IAI (left) and David Pollack, CEO of Spacecom (right) signing the Amos-6 satellite agreement
2. Joseph Weiss and David Pollack raise a toast for the new agreement between the companies

For further information, please contact:
Doron Suslik
Deputy Corporate VP for Communications
Tel: 972 (3) 935-8509
Fax: 972 (3) 935-8512
e-mail:
hpaz@iai.co.il





 Print  Send To Friend


Back To List
Next