Failure of the peace process between the Israelis and Palestinians has forced El Al to implement an emergency plan in the face of major financial losses and a continuing slowdown in passenger numbers.
Last year the Israeli flag carrier lost $110 million. The slump in passenger numbers following the eruption of violence between the two sides is worsening, and traffic from the vital US market has fallen 50%. The situation is little better on other routes.
The emergency plan is expected to include wage cuts, staff layoffs, the closure of certain routes and the immediate sale of a number of older Boeing 747s and 767s.
Despite the situation , the carrier is determined to purchase a fourth 777 to enhance its capability to compete on long haul markets to the USA and the Far East.
Source: Flight International
