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Iai Sues Spanish Firm

Israeli Aircraft Industries has filed a lawsuit against a Spanish electronics company, asking for more than $125 million in compensation for stolen technology, breaking a contract, lost income and a perceived loss of world market share in the business of modernizing old airplanes.

Ceselsa, the Spanish firm, which is a private concern, said Wednesday through its president, Jose Antonio Perez-Nievas, that the IAI accusations had no basis for its claim.

Perez-Nievas said that his company was forced by the Defense Ministry to stop its cooperation with the Israelis in modernizing 23 Mirage airplanes of the Spanish air force. The two companies began their partnership in 1986.

Perez-Nievas said Ceselsa was not using Israeli technology but rather an advanced technology developed by Ceselsa itself. He said his firm’s technology was already in use for repairing aging F-18 airplanes.