Arie Egozi / Tel Aviv
The long-awaited privatisation of Israeli national carrier El Al has been approved by the Israeli parliament. The vote by the parliament's finance committee signals the start of the sell-off process aimed at disposing of 100% of the airline's share capital, though not necessarily in a single tranche.
The Israeli government has warned that failure of the latest privatisation attempt will result in El Al being placed in receivership.
"The committee's decision is a move in the right direction," says the carrier's president, Amos Shapira. "We think that the privatisation of El Al will allow it to better compete in the market," he adds.
One of the main obstacles encountered so far has been the opposition of religious political parties to allowing El Al to operate on the Jewish Sabbath. After the vote in the finance committee, Israeli transport minister Avigdor Liberman said "the road is open" to permitting the airline to fly seven days a week.
Another problem is the approximately $100 million that the airline has used from the employees' compensation fund. The union is insisting the money be returned before it co-operates with the privatisation process.
Source: Flight International
