Established April 1967 from former Bedek Aircraft Company (founded 1953), as a repair and maintenance organization. Bedek manufactured Slingsby sailplanes under license from 1957, and also initiated license production of the French Fouga Magister. IAI now composed of several operating groups and subsidiaries, including Bedek Aviation Group (for aircraft maintenance and modification/ upgrading, engine work, overhaul, and modification of components and subsystems, and manufacture of manned and unmanned ground equipment, boats and aircraft structures), Commercial Aircraft Group (work includes Westwind, Astra, and Galaxy business jets, manufacture of subassemblies for Boeing, and much more), Military Aircraft Group (overhaul, repair and modification of combat aircraft, design and manufacture of UAVs, and helicopter work), and Electronics Group.

Built Nesher fighter 1969, an Israeli-designed interim modified version of the French Mirage III. Developed a more-capable version as the Kfir, which first flew in 1973 and went through several progressively improved variants by manufacture and modification. Designed light STOL transport known as Arava, prototype of which first flew November 27,1969, and produced civil and military versions. Acquired in 1967 all rights of Rockwell-Standard Corporation's Jet Commander twin-turbojet business transport and developed this into the improved twin-turbofan IA11124 Westwind, which entered production in 1976. Developed the IA11125 Astra (first flown March 1984), which remains available in 1999 in latest SPXform.

Shareholder in Galaxy Aerospace (q.v.) in U.S.A., which promotes the Astra SPX and promotes and fitsout the new Galaxy wide-body bizjet developed by IAI. Developed the Phalcon airborne early warning and intelligence aircraft, using the conformal Phalcon radar system developed in cooperation with Elta Electronics Industries of lAI's Electronics Group, which can also be installed on aircraft other than the original modified Boeing 707 type (first B707/Phalcon flew May 1993; other platforms being proposed include Airbus A310, Boeing 767, and llyushin II-76).

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