Interesting Article about "UP"
 

I came across this interesting article about "UP" and it starting ops last week.

http://www.economist.com/blogs/gulli...iation-deal-eu

Two things that are striking about this article and "UP" in particular.

1. An EL AL spokesman admitted to launching a low cost brand but it's costs aren't low. This is exactly what United and Delta tried over 10 years ago. Does EL AL honestly think they will have better results recycling a tried and failed idea from decades past?

2. "Seventy per cent of Israeli customers prefer to fly with El Al," says the spokeswoman. " I suppose the EL AL spokeswoman chose to ignore EL AL's dwindling marketshare which is hovering around 32% and going down. Also, Israeli high yielding business pax surely do not prefer EL AL. For proof all they have to do is visit this forum :p

Seems like the powers that be inside EL AL are living in a bubble.

I think it's time to place bets on when LY will go bust (or taken over)

It won't be taken over with its current union contracts and debt obligations.

Nobody wants to assume the mess that is the current EL AL. The company needs major restructuring but both the employees and the management are heavily unionized and therefore no serious restructuring can take place at this juncture.

The conversation I've been waiting to happen happened yesterday after shul - my in-law's shul is filled with TATL commuters, and a bunch asked the few that stick with LY why they're sticking there. Sounds like my father-in-law and others may switch to UA

Moderator Note
 

Got an "UP" Email Today
 

I got an email today from EL AL with the subject line "UP" is in the Air."

The email contained the below link showing how the "UP" planes are repainted with the "UP" livery. https://www.youtube.com/watch?v=kT_3bizqdh8

Interesting that this email came in on April Fools day. The whole idea of "UP" and the belief that EL AL will be able to compete on a low cost basis when their costs are high is one big joke that was played out a decade ago in the United States by Delta and United.

Rather than investing in this ridiculous idea, EL AL should have spent money upgrading its long haul feet and installing WIFI like Delta has done with 3 of its 744's that will certainly be deployed to TLV.

First, they sould have painted some mainline a/c which now wear the partial livery for ages (EAJ/EAK/EAL/ELE/ELH)