Originally Posted by apirchik
The average Israeli buys cars and most electronic appliances mainly from the Far East and Europe. This is not because we love Europe and hate America - it's just because we buy what's fitting us best (functionality and pricing), regardless of where it's made. Hey, we even buy clothes, furniture, and fruits and vegetables made in the Palestinian Authority - we all know how much they support us.
El Al is not Israeli government anymore. It can do whatever business decision it wants to do. As much as we all appreciate what the USA is doing to support Israel and what European countries don't do, politics should not play a part in El Al's decisions, just as they don't play a part in any other private company in Israel.
OK I think I might have misconstrued what I was trying to explain.
Obviously nobody would expect Israel to buy solely from the US. After all, how many Americans do anymore
. Nevertheless, El Al is buying a product in which there are only two companies making what it needs. Yes, El Al is privatized. Yes El Al is "independent" from the Israeli government. I
do recognize that. But let's examine this. While the US government would gladly let one or two airlines disappear from existence (Southwest, Jet blue, USAir even). It not going to let one of its "flag" carriers - UA and AA fold overnight (or at least not without extensive leniency and toleration of their mismanagement). They are too important to American interests. They are both members if the two largest alliances, they fly to the most international destinations, they serve too much domestic travel. That being said, does a member of the DOT or FAA sit on the airlines Board of Directors? No. Absolutely not. But how tolerant was the US of UA in bankruptcy? How many did USAir get before anyone really cared about trying to turn it around? Airlines are terribly mismanaged here, but we won't let them fold without a fight; they serve "vital national interests." Would the British government let Virgin fold? You bet. BA? No way in hell. Would the Italians let Alitalia fold (even though they should!)? Nope.
The USA and North America has one major commercial aircraft manufacturer (unless you want to fly around in CRJ's!). Boeing. The Europeans have Airbus. They are always at each others throats. I don't think that PIA picked the 772LR only because its a superior aircraft. Just as there is such political posturing in the EU. At the end of the day, its not just the quality of the A/C it's the political maneuvering that also makes the sale.
This brings to Israel. Will Israel allow Israir to fold? Well, they might give it some small support, but its a private company. Will they allow El Al to fold? I don't see that happening. It serves too many routes important for trade and the Israeli government. Nobody in the states has really heard of Israir. Do you think people in HKG have? It's essentially an extension of the government in this respect. As much as you and I would like it to be private (which would make it more competitive) at the end of the day, just as in so many other nations, the governments pull the strings.
Now I think most Americans support Israel. But how will this look? Israel gets a ton of US aid and loans. I think its pretty balsy to have El Al buy Airbus planes. I don't think UA would try this one (if they ever got new a/c). I do think that blockheaded senators on the Hill will think that Israel has total control offer El Al and will be very insulted by this move. Am I? Not really. But I don't think many of them care that LY is private. It's all politics.