Israel Aerospace Industries CEO Boaz Levy says Israel’s next-generation interceptor is advancing rapidly as the Arrow system’s wartime performance boosts global demand; Germany receives its first Arrow 3 battery in the largest defense deal in IAI’s history

“This is a significant milestone in a process that has lasted two years since the signing,” said Boaz Levy, CEO of Israel Aerospace Industries (IAI), referring to this week’s ceremony marking the delivery of the first operational Arrow 3 missile defense system to Germany.

“It’s the result of extremely intensive work by the State of Israel and by IAI in the midst of a war. We demonstrated Israeli capabilities, delivered a full weapons system on time, trained our partners in Germany — and today they know how to operate it independently,” he added, speaking at the Calcalist–Bank Leumi Berlin Conference.

Israel Aerospace Industries CEO Boaz Levy
(Photo: Yaron Brener)

“A fantastic deal. They signed it about a week before October 7,” Levy said. “At the time, they knew they were choosing the best system in the world. Today they know it with complete certainty, because it was proven on the battlefield in Israel. Just as it intercepted ballistic missiles from Yemen and from Iran with phenomenal accuracy, it will be able to intercept threats aimed at Germany — and also provide protection for countries surrounding Germany.”

Is this the first deal in a series of future contracts? “In Israel’s war, the need for missile defense systems against ballistic threats was demonstrated beyond debate. Questions that existed before the war — ‘why do we need this?’ and ‘what does it cost?’ — no longer exist. Any leader in the free world who feels threatened must protect his citizens. And the cost-effectiveness of that protection was proven in Israel: a single interceptor launched at the right altitude can prevent catastrophic damage on the ground. Israel’s citizens know they have someone to rely on — and starting this week, Germany’s citizens will also be less worried and know they have someone to rely on.”

The Arrow 3 missile defense system delivered to the German Armed Forces
(Photo: Defense Ministry)

Can IAI supply the necessary interceptors both to Germany and to the IDF? “The system supplied to Germany was mandated by the chancellor to be identical to the Israeli system. We are delivering exactly the same system the IDF has. All that remains is production — and that we know how to do. We’ve already proven that if we commit to a two-year timeline, we meet it, even in the middle of a war.”

The war is accelerating development of Arrow 4. Where does that project stand? “In the recent conflict we relied on Arrow 3 and Arrow 2. The first Arrow 2 interceptor was delivered on November 29, 1998. Some have done their job, and some now need to be replaced by Arrow 4. We’re deep into development and approaching the start of serial production. Together with Arrow 3, it will provide the best answer to regional threats — and threats elsewhere.”

The Arrow 3 missile defense system
(Photo: IDF)

This is the largest defense deal in IAI’s history. On a personal level, is this a kind of full-circle moment? “I’m closing several circles here. I began my career on the Arrow project as a guidance and control engineer who wrote the missile’s autopilot. I went on to become the project’s chief engineer, then head of the Arrow program — the one who took Arrow 3 from concept to reality. It protected the State of Israel, and it’s an immense source of satisfaction to deliver it to Germany, knowing this missile will defend not only Israelis but citizens of the free world.

“On a personal level, I’m closing another small circle, as the son of a Holocaust survivor. The world’s first ballistic missile was created by Dr. Wernher von Braun in Germany — and now the State of Israel is delivering a weapons system designed by the son of a Holocaust survivor to German soil, where it will defend against ballistic missiles.”

As reported by Ynetnews