An Israeli Government committee has recommended the full privatisation of national carrier El Al, although the politically sensitive issue of flying on the Jewish Sabbath, which has dogged previous attempts at a sale, has yet to be resolved.
The inter-departmental committee proposes the flotation of all the airline's shares on the Tel Aviv stock exchange, with around 10% being offered to staff at a discount. The sale should be made "soon" to allow the airline "-to cope with the developments in the airline market", says the report.
Although the committee addressed the issue on Saturday flights, expressing the view that there should be no Sabbath restriction after privatisation, the issue has yet to be agreed.
Israel's minister of transport, rabbi Yitzhak Levi, has already expressed his objection to the proposals and, in a press conference on 2 June, prime minister Benjamin Netanyahu evaded giving a direct answer to the issue, saying that it will be studied "during the privatisation process".
El Al sources remain sceptical that these latest privatisation proposals will fare any better than previous attempts over the last few years, unless the political issues are resolved. "The issue of the Sabbath flights will have to be solved fully before any process can begin," says one airline official.
Source: Flight International
