However, the Russian company had trouble meeting agreed production schedules, and the partnership was ended in 1995.

[4][5] This led to another risk-sharing agreement, with EADS Sogerma manufacturing the fuselage and empennage, and IAI being responsible for final assembly and other prime contractor duties.

[6] The Galaxy was based on a new wider fuselage, attached to a strengthened Astra SPX wing with integrated winglets and modified high-lift devices, powered by new 5,700-lb (25.3 kN) thrust Pratt & Whitney Canada PW306 turbofans, and with improved Pro Line 4 avionics and an all-new interior.

The decision to use the existing Astra SPX wing imposed a maximum limit on size but allowed a fuselage large enough to accommodate three-abreast seating.

The main change from the Astra SPX wing was the introduction of Krueger flaps on the leading edges of the inboard section.