The Israeli Government is planning to sell its 100% holding in national airline El Al. The decision is a major change to the previous government's policy of retaining control by selling only 49 % of the shares.
The new policy was revealed by Israeli prime minister Ehud Barak , following a series of consultations with the finance and transport ministries.
The government recently announced that it intended to allow the airline to fly on the Jewish Sabbath and religious holidays (Flight International, 12 -18 September).The restriction had been a major impediment to previous schemes to privatise the carrier.
At this point its not clear what the conditions of the sale will be and whether the shares will be offered on the stock market, sold in a trade sale or a combination of the two.
The government did not put a date on the sale but declared its intention to start the process soon. Sources in the airline estimate that the sale could net the government between $250-350 million.
Source: Flight International