El Al to buy Airbus 330's in snub to Boeing

For first time, El Al to buy Airbus instead of Boeing
By Zohar Blumenkrantz Haaretz today

The Borovich-Mozes group, (see footnote)which bought the controlling interest in El Al from the state, in a massive snub to Boeing, are to buy eight A-330 Airbus aircraft, which will replace Boeing 767 passenger jets. The deal, including spare parts, is estimated at US$500 million.

A series of meetings, held under a veil of secrecy, ended Tuesday night at the Ramat Hahayal offices of the Borovich-Mozes group.

European Union Banks will provide credit to finance the deal, in the same way to the credit El Al has received in the past with Boeingto be repaid over a 14-year period. Airbus is committed to a three-year delivery schedule from the date the deal is signed.

Elsewhere, Emirates, the biggest customer for the new Airbus A380, said it may buy more of the aircraft in place of a $4.2 billion order for 20 Airbus 340-600's which have been put on hold.

Pic the Airbus transporter, shipping A380 wings from North Wales UK to Toulouse France.(c) Airbus Industrie

FOOTNOTE

The sale of El Al was completed in January 2005 with transfer of control of the company to Knafaim – Arkia Holdings Ltd. controlled by the Borovich family, and the company began a new era – an era of full independent management.

There is a close connection between El Al, as the national carrier, and the State of Israel, via aviation policies and agreements determined by the government. The State owns a “golden share” in ensuring its vital interests via the company, including the ability to maintain national air transportation in times of emergency. Additionally, El Al continues in a range of national activities such as airlifting immigrants, flying March of the Living participants, humanitarian aid and medical missions for the needy after the tsunami, contributions to Jewish communities around the world, etc.

In addition to cutting staff from a high of 5,000 (at the start of the intifadah) to 3,500 today. State employees are no longer made to fly El Al and can fly with other carriers, self check-in is to be introduced, and the airline is now said to be profitable.

In a recent article in Forbes Israel the Borovich family were named as one of the 12 families owning 60% of the listed companies in Israel. They were named as Sami Ofer, Nochi Dankner, Shari Arison, the Cerberus-Gabriel consortium, Charles Bronfman, Yitzchak Tshuva, the Saban group, Lev Leviev, Matthew Bronfman, Tzadik Bino, the Borovich family, and Eliezer Fishman and are said to be well connected with Kadima.