As part of renewing its air fleet, El Al Airlines is selling a Boeing ER-767-300 to a foreign airline whose identity it has not disclosed. The two airlines signed a memorandum of understanding (MOU). If the deal is completed, El Al stands to post a $5.1 million capital gain on the sale.
In its report to the TASE, El Al said, “The proceeds stated in the MOU were according to the prevailing market pries in the industry for an airliner of this model, age, and state of maintenance at the time of delivery.” As in the auto industry, “Fulfilment of the deal and the receiving the full proceeds are subject to the signing of a detailed sale agreement, obtaining the required approvals by the buyer, and completion of a technical test of the plane to the buyer’s satisfaction.”
In early February, after 36 years of service, the last remaining ER-767-300 in El Al’s fleet was removed from service. El Al used these planes for flights to destinations in North America, Asia, and Europe in the framework of El Al’s renewal plan, which includes upgrading 737 and 777 planes in its existing fleet and receiving 16 more Dreamliners purchased from Boeing. The company now has nine Dreamliners, scheduled to increase to 14 by the end of this year.
Another model used by El Al slated for removal from service in 2019 is the Boeing 747. Tel Al’s fleet has 43 planes. In addition to Dreamliners, El Al has 15 737-800s, eight 737-900ERs designed for short and medium-range flights, and 777-200s for long-range flights. El Al also currently uses four 747-700s used for medium and long-range flights.
Published by Globes, Israel business news – en.globes.co.il – on April 14, 2019
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