Israel Aircraft Industries' (IAI's) Bedek maintenance division may merge with that of Israeli airline El Al in the face of mounting costs and a downturn in business. Both are located at Ben Gurion International Airport in Tel Aviv.
El Al maintains its own all-Boeing fleet, but has failed to get substantial work from other customers, and the maintenance costs - 15% higher than at Bedek - have become a heavy burden on the Israeli airline. Sources say that a joint maintenance subsidiary will be established.
Earlier plans to merge El Al's maintenance division with Bedek met opposition from El Al unions. Talks will soon resume to formulate the structure of the joint subsidiary.
Source: Flight International
