The United States pressured Israel Aerospace Industries (IAI) to back out of a multi-billion dollar joint partnership with the Swedish aerospace company Saab Gripen to bid on new multi-role fighter jets for the Indian Air Force. The Israeli Defense Ministry ordered IAI to back out of the deal after the Pentagon expressed concern that American technology, used by Israel, would be integrated into the planes and reach foreign hands.
“The stated concern was that western technology in Israeli hands would make its way to the Indians,” JPost quoted an Israeli official as saying. Israeli officials said it was more likely that the Americans were concerned that if the IAI competed for the deal with Saab it would force U.S. companies Boeing and Lockheed Martin to lower their prices. Saab asked the IAI to jointly develop an advanced model of their multi-role fighter to compete for the deal.