Arie Egozi/TEL AVIV
El Al is studying the creation of a low fare joint venture airline which could help it reduce its operating restrictions on the Jewish Sabbath.
The Israeli national carrier sees a niche for a low cost airline for operations on "no frills" flights to destinations in Europe. El Al is restricted from operating services each week on the Sabbath, and the spin off operation is seen as a possible way of bypassing the ban.
The airline is aiming to establish the new venture in a deal with a local Israeli private airline, possibly Arkia.
Sources at El Al confirm that it "-has an urgent need for a low fare operation, which will be formed with private partners". Talks are under way with Arkia, and other partners are being considered if the talks fail, say the sources.
The new low cost airline will have a different livery and will operate to countries such as France, Greece, Italy and Turkey.
While the low cost concept gains pace, the airline continues to await an Israeli Government's privatisation committee decision over the long delayed sale of a stake in its flag carrier. Transport minister Shaul Yahalom has indicated, however, that the state will retain control of the airline and keep in place the financially damaging ban on Sabbath flights.
The committee had been due to rule on the extent of the share sale on 9 March, but postponed a decision for several weeks.
Source: Flight International
