Israeli flag-carrier El Al has signed an agreement with Boeing covering the purchase of 20 737 Max jets, with options on a further 11.
El Al had previously indicated in June that it was negotiating for around 30 Max jets to meet requirements for the single-aisle segment of its fleet-renewal programme.
The carrier has disclosed, during a first-half financial briefing, that it reached the agreement on 14 August.
El Al says it expects to take delivery of the firm aircraft over the course of 2028-31, while the options – if taken up – would run from 2030-32.
But it adds that it will “examine” the possibility of introducing 737 Max aircraft as early as 2027, through leasing companies. The carrier indicates that leases could cover six of the 11 optioned aircraft.
“Most of the aircraft will gradually replace existing Boeing 737s operated by the company and some will be used to expand the company’s fleet, in accordance with its strategic plan,” says the carrier.
The airline, which values the deal at $1.5-2.5 billion, has not specified the Max variants being ordered. Its current 737 fleet comprises a mix of -800s and -900s.
All 737 Max aircraft are fitted with CFM International Leap-1B engines.
El Al states that it has “partial flexibility” to postpone acceptance dates of some aircraft, and has a number of conversion rights regarding the models. The carrier also has the right to cancel any aircraft whose delivery is delayed beyond a certain threshold.
It will make advance payments for the new fleet totalling $580-750 million.
