El Al Matmid - Haim Romano leaving El Al

Haim Romano leaving El Al

Ha'aretz
By Yoram Gabison

Haim Romano, the CEO of El Al Israel Airlines, is expected to announce his resignation, after four and a half years on the job. His contract requires him to give six months' notice, which means he will remain until March 2010, exactly five years after he started at the airline. The timing will give El Al's board enough time to find a replacement and will allow the new CEO to participate in preparing El Al's 2010 budget and plans.

As to why Romano, 55, is leaving now, one of the main reasons seems to be his continual fight with the airline's labor unions. It seems the nonstop battle with employees wore him down. His attempts to lower wage costs by 10% met with stubborn opposition from the airline's many unions. Advertisement


He also found himself fighting growing competition from low-cost and regular airlines as well as charter carriers, as the state attempted to implement its Open Skies policy for greater competition. Finally, the global economic crisis and its resulting drop in passengers, and in particular the high-profit business fliers - along with higher fuel costs - hurt El Al's most profitable routes hard: passenger flights to North America and cargo flights to the Far East.

What went right

During Romano's tenure El Al was unable to make any significant changes in its corporate culture or in its labor relations with employees, despite the airline's metamorphosis from a government company to a private firm. Romano also failed in getting the state to meet its promises to partially cover El Al's security costs.

He did succeed in leading a new strategic plan called El Al 2010, which sought to increase sales and improve profitability by reducing the age of its fleet of planes; upgrading business class to increase its market share of the premium sector to 60%; selling over 10% of its tickets over the Internet or through its call center; forging an alliance with American Airlines, which was unsuccessful due to the lowering of Israel's aviation safety ranking; opening the new route to Sao Paulo; and flying to Eilat.

Before joining El Al, Romano had been deputy CEO at cellular operator Partner Communications, and he was marked as the future CEO.

However, Romano decided to leave when then Partner CEO, Amikam Cohen, took his time in leaving the job. Cohen is now the chairman of El Al. Romano also managed customer service and human resources at Partner before being appointed deputy CEO.

He also served as the head of human resources for the Shin Bet security service before joining the private sector.

Romano owns 295,000 El Al shares worth NIS 268,000, 0.06% of the airline. Since the begining of 2009 the share has risen 36%, but over the past five years the stock has lost about two-thirds of its value.

Romano earned NIS 4.9 million in 2008, including a NIS 3.2 million bonus.

Interesting, but not surprising. I wonder who the replacement is going to be?

I don't know if it's a good or a bad news...Let's hope the next CEO is not worse

Interesting, but not surprising. I wonder who the replacement is going to be?

Why is it not surprising?

Why is it not surprising?

In this economic environment, not seeing success (and perhaps even seeing worse news to come for which he doesn't want to take the blame) and his hitting a wall with the labor unions?

He is not leaving... He was fired...
If he would finish his contract he deserve 6 months worth salary,
If he will be fired, he deserve 18 months worth salary.
He got the 18 months... 8-)
(Not to mention he had 6 month to finish his contract...)

Anyway, Between David Maymon, Eli Cohen and Lior Yavor to replace him,
I would go for David Maymon! 8-)

Anyway, Between David Maymon, Eli Cohen and Lior Yavor to replace him,
I would go for David Maymon! 8-)

I cannot agree with that. He seems to be almost a world expert at 'premium product destruction'.

He is not leaving... He was fired...
If he would finish his contract he deserve 6 months worth salary,
If he will be fired, he deserve 18 months worth salary.
He got the 18 months... 8-)
(Not to mention he had 6 month to finish his contract...)

Anyway, Between David Maymon, Eli Cohen and Lior Yavor to replace him,
I would go for David Maymon! 8-)


Who are these guys? What is their background?

Is this the Eli Cohen that was at the Ministry of Foreign Affairs like 15 years ago?

He is not leaving... He was fired...
If he would finish his contract he deserve 6 months worth salary,
If he will be fired, he deserve 18 months worth salary.
He got the 18 months... 8-)
(Not to mention he had 6 month to finish his contract...)

Anyway, Between David Maymon, Eli Cohen and Lior Yavor to replace him,
I would go for David Maymon! 8-)

ebzed - not everything should be read face value. The fact that he got 18 months does not mean he was fired for sure. Anyone who has ever been involved in emplyment situations of senior people at large companies knows that sometimes the terms of the contract are not what prevails in the case of firing or resignation. I believe Haim Romano left on his on account, was paid the full 18 months because he negotiated that before leaving (and he knows a thing or two) and he has left for a reason. Although I don't have any inside knowledge I believe it is related to Partner (Orange) but only time will tell of course.

Cheers!

economyman

I cannot agree with that. He seems to be almost a world expert at 'premium product destruction'.


Why? What did he do in the past to earn this reputation......?

good riddance. Under Romano, LY's made a number of strategic blunders: a terrible website, letting go of 787 slots which would either give them good planes or lots of delay compensation, shoddy new 'premium' seats.

But hopefully as another poster said, the next guy won't be worse

ebzed - not everything should be read face value.

He was fired, His golden parachute was 6 month worth, being fired worth 18 months..., Also EL-AL published he was fired later on...

So if it sounds like a duck, it moves like a duck, and looks like a duck,
its a duck...

He was fired, His golden parachute was 6 month worth, being fired worth 18 months..., Also EL-AL published he was fired later on...

So if it sounds like a duck, it moves like a duck, and looks like a duck,
its a duck...

The thing is here it only looks like a duck, it doesn't sound like one or move like one.

I will reiterate, simplistic journalism is what has caused people to think he's been fired. The newspapers stated that since he was entitled to 6 months if he leaves and 18 if he is fired journalists and their readers assume that he was fired.

I don't buy that. When someone leaves there are many times more negotiations which in some cases change the terms agreed in the employment contract. I myself have managed to get more than agreed out of an employer before when leaving on my own accord and I am not at Romano's job level. Romano probably knows things LY's owners don't want you and I to know and whilst he may have a duty of confidence these things are always open to interpretation.

ebzed - Do you have a soruce for the EL-AL publication which says he was fired? I follow most of the press in Israel all the time and did not see that.

ebzed - Do you have a soruce for the EL-AL publication which says he was fired? I follow most of the press in Israel all the time and did not see that.

Sorry for the hebrew:
החברה והמנכ"ל, מר חיים רומנו הגיעו לידי הסכמה לפיה כהונתו של המנהל הכללי תסתיים על פי הודעה מוקדמת על ידי החברה של 18 חודשים וזאת בהתאם להוראות הסכם העבודה האישי שביניהם

This is from EL-AL, When the company decide that you dont continue, it means you are fired no matter how nice they try to show its not.

Dont worry for him, I am quite sure he is on his way to orange... 8-)

Dont worry for him, I am quite sure he is on his way to orange... 8-)You mean back to Orange...

Sorry for the hebrew:
החברה והמנכ"ל, מר חיים רומנו הגיעו לידי הסכמה לפיה כהונתו של המנהל הכללי תסתיים על פי הודעה מוקדמת על ידי החברה של 18 חודשים וזאת בהתאם להוראות הסכם העבודה האישי שביניהם

This is from EL-AL, When the company decide that you dont continue, it means you are fired no matter how nice they try to show its not.

Dont worry for him, I am quite sure he is on his way to orange... 8-)

Okay - it seems like he was fired, although it's still not 100% sure.

Okay - it seems like he was fired, although it's still not 100% sure.

The main argument was his salary, They didnt agreed on that, Not to mention
the other plans he had (Union, Travel Agents 7% and etc).


Dont forget that the Israeli Government still hold a "little" of EL-AL stocks,
So the EL-AL workers and other parties, Its hard to believe they will will
approve an agreement where this guy takes home 8.2m Shekels in the current
company situation.

... why is going is a very a good ceo for elal he made a chence in elal for better is a good man why romano im taking my hat off for you we will miss you thanks for what you did thanks

Indeed he's a nice person, The only positive thing i think he did in EL-AL is the EL-AL 2010 program, Most of the other things that we enjoy and still happening is a continue of the hard work of Amos Shapira.

This is a person i miss in EL-AL, He was the best thing happened to EL-AL...

And Kid, I dont think he read the forum, But if you search good enough
in google, you will find his e-mail address, you can thank him personally ;)

BTW, According to EL-AL, Now the new CEO is not going to come from in-house...

Ebzed.

The main argument was his salary, They didnt agreed on that, Not to mention
the other plans he had (Union, Travel Agents 7% and etc).


Dont forget that the Israeli Government still hold a "little" of EL-AL stocks,
So the EL-AL workers and other parties, Its hard to believe they will will
approve an agreement where this guy takes home 8.2m Shekels in the current
company situation.

Aha - so you see they did not agree on terms. It wasn't so much that he was fired but that they did not agree to what he wanted to do and so agreed to separate.

can you help me find Haim Romano email adress @:-)

can you help me find Haim Romano email adress @:-)
You've got a PM with his email and cell. Knock yourself out kid.

I think that Mr. Romano did good for Elal and did very good for the FQTV.
I hope that the next person won't forget us when he will fight
with all the unions.

LiorM

Aha - so you see they did not agree on terms. It wasn't so much that he was fired but that they did not agree to what he wanted to do and so agreed to separate.

Basic calculation, IF he finish 6 months till the end of contract, And contact
is not renewed, He will get additional 6 Months worth of salary and go home.
Now, What happened:
- He got 18 Months worth of salary as compensation since he was fired.
- He will continue to work for 2 to 3 months, And then get 3 salaries in addition.
(so anyway, he get the salary)

So paying 12 Months salary + 20% (Raise) vs paying 24 Months Salary.

You've got a PM with his email and cell. Knock yourself out kid.Oh dear, poor Mr Romano, perhaps we should call him to let him know what's coming? :D ;)

I think that Mr. Romano did good for Elal and did very good for the FQTV.
I hope that the next person won't forget us when he will fight
with all the unions.

LiorM
And more important cancel the 7% for the travel agents...
Today we pay extra 7% for nothing, An EL-AL cannot sell tickets directly
or thru the web in lower prices than the TA...
TAs still sell LH, AA and others and not getting the 7% from them!

And more important cancel the 7% for the travel agents...

Really? and how is your TA meant to make a living exactly?

Or should they deal with your booking out of the goodness of their heart?

clubman you dont like that i in the forum just why :confused:

I hope the new CEO will continue the renewal fleet program, and upgrade the cabin features (AVOD...) and the meals...

you right

clubman you dont like that i in the forum just why :confused:Hey don't take it so seriously, I was only joking hence the smiles! Take it easy kid... ;)

Really? and how is your TA meant to make a living exactly?

Or should they deal with your booking out of the goodness of their heart?
Clubman... what's your problem?
70% of the Air Lines dont pay commissions to TA but those still sell them,
The agencies themselves get rebates and etc on top of the 7% believe me that they earn enough.

Why most of the agents charge from regular customers "Dmei Tipol" in addition to the 7%?

Who said i am using an agent? But EL-AL cant sell the tickets cheaper
than the agents, so they collect the 7%, Indeed they earn more, but
the amount of tickets el-al sale vs the agents is a minimal one.


Thanks,
Eran.

Clubman... what's your problem?
70% of the Air Lines dont pay commissions to TA but those still sell them,
The agencies themselves get rebates and etc on top of the 7% believe me that they earn enough.

Why most of the agents charge from regular customers "Dmei Tipol" in addition to the 7%?

Who said i am using an agent? But EL-AL cant sell the tickets cheaper
than the agents, so they collect the 7%, Indeed they earn more, but
the amount of tickets el-al sale vs the agents is a minimal one.


Thanks,
Eran.

I would suggest to take somebody neutral for the job of the new CEO possibly not an israeli and somebody with experience in the Airline Industry. How about Andre Dosé, he used to be CEO of Crossair, then SWISS and latter on of Gulf Air :). I think it is good that Haim Romano is leaving as if he calls himself proud of upgrading it's Business Class I can just laugh. He choose a outdated Business Class and First Class prduct that was already one generation behind before the first LY aircraft was equiped with it.

I would suggest to take somebody neutral for the job of the new CEO possibly not an israeli and somebody with experience in the Airline Industry. How about Andre Dosé, he used to be CEO of Crossair, then SWISS and latter on of Gulf Air :). I think it is good that Haim Romano is leaving as if he calls himself proud of upgrading it's Business Class I can just laugh. He choose a outdated Business Class and First Class prduct that was already one generation behind before the first LY aircraft was equiped with it.

He did the best he can with the budget he had, Knowing the 2 Burovich he had
on top, We should be thankful we dont fly 2nd hand seats from a recovered crashed topolov business class...

im sorry clubman i didnt understood so back be friends


have a nice day


from ely :cool: ;) :)