Israeli carrier El Al has signed for the financing of its first Boeing 787-8, which is scheduled for delivery during November.
Israeli carrier El Al has signed for the financing of its first Boeing 787-8, which is scheduled for delivery during November.
The airline is intending to acquire 16 787s, of which it has received 12 – all of them the larger -9 variant.
El Al states that, on 25 November, it signed a $125 million financing agreement to purchase its first 787-8 from Boeing.
The financing takes the form of a JOLCO structure, the airline adds, with the aircraft held by a special-purpose vehicle and transferred to the carrier’s ownership after 10 years.
El Al is to receive four 787-8s, of which two aircraft are being purchased from the US airframer.
All of its 787s are being fitted with Rolls-Royce Trent 1000 powerplants.
El Al has been introducing the 787s as it phases out its Boeing 767-300ER and 747-400 fleets.
It disclosed earlier this month that, in connection with the withdrawal of its 747s, it has sealed an agreement to sell 12 Pratt & Whitney PW4000 engines to an unidentified foreign buyer.
El Al says it expects to make a capital gain, before tax, of around $30 million from the powerplant sale, subject to checks on their condition.
