June 1, 1999 (by Lieven Dewitte) -
Israel on Wednesday put off by at least a month a decision on the competition between Lockheed Martin and Boeing for a 2.5 billion jet fighter tender. Prime Minister-elect Ehud Barak requested late on Wednesday that the decision be left to his new government, which is expected to be formed by early July.
Under terms of a U.S. Congressional decision that set guidelines for the sale, Israel has until July 20 to make its decision. Israel will however ask the U.S. Defense Department for a three-week delay. Further postponement will require Israel to seek renewed Congressional approval for the sale.
Lockheed has offered 50 single-engine F-16 aircraft for $2.5 billion, according to a top defense official. Industry sources said Lockheed's offer included an option to buy another 50 planes in the next nine years for $2 billion.
The company also committed to $2billion in joint projects with Israeli firms if Israel exercised the option to purchase all 100 planes, the sources said.
