THE ISRAELI Government has postponed the planned flotation of El Al for six months because of the crisis facing the Tel Aviv stock market.
Valuations being put on the national carrier have failed to meet Government expectations. If the market fails to improve, the Government is expected to switch attention away from a public flotation and look instead for a strategic partner for the airline.
Israeli finance minister Avraham Shochat says that it would then put bids for the carrier out to tender.
Israel's largest holding company, Koor, has expressed its interest in forming a consortium to bid for the majority of El Al's shares. Koor sources say that at least one major US airline has shown interest in joining such a consortium.
Source: Flight International
