The Israeli government is coming under fierce pressure to lift the ban on flag carrier El Al's operations on the Sabbath. The limitation of a six-day operation is blamed for $50 million of the airline's $120 million loss in 1996 and contributed to last year's shelving of its planned privatisation.
Former El Al director general Rafi Harlev has warned that the airline risks being overtaken by competitors unless the ban is lifted, and a pilots group is also seeking to end the restriction. 'If El Al is not privatised in the next two or three years another Israeli airline will arise which will wipe [it] off the map,' says Harlev. He says privatisation would be almost impossible unless new owners were permitted a seven-day operation.
Harlev is leading a group of investors seeking to set up a wet-lease company offering capacity on El Al aircraft to overseas carriers on the Sabbath. He believes this would bypass domestic religious objections.
Ran Avshalom, a former leader of the El Al pilots' association, has organised 20 El Al pilots to operate aircraft owned by the Israeli independent Arkia Airlines on Saturdays. El Al is already looking to extend cooperation with Arkia. El Al's pilots would certainly welcome the extra working hours, having long voiced discontent at the effect of the Saturday ban on their earnings.
Operations on the Sabbath apart, the carrier's financial performance could suffer further with the start of FedEx operations to Israel. El Al is concerned its profitable cargo business - which carried 260,000 tonnes in 1996 - will suffer after the integrator launched four weekly flights to Israel from Paris in mid-February. Uri Dagan, Fedex's managing director Israel, says the company already has 35 per cent of the express package market and has signed up 100 clients.
Meanwhile, expansion opportunities from the spluttering Middle East peace process continue to drip through to El Al with the restart of bilateral talks between the Israeli and Moroccan governments.
The talks have been stalled for six months but one source close to the discussions says the sides are each aiming for two weekly flights between the countries. El Al has already signed an agreement with Royal Air Maroc to offer connections with the Moroccan carrier in Paris until a new bilateral is signed.
Source: Airline Business
