ElAl effectively shutdown...
Apr 16, 2020 | 1:11 am
#16
Original Poster
FlyerTalk Evangelist
Join Date: May 2005
Location: TLV/LHR
Programs: BA GGL, IHG Diamond Elite Amb, HH Diamond, Avis PC, Hertz PC, Sixt Platinum
Posts: 13,004
Looks like the ball is now in ELAL's union court. Become a far smaller company (and get bailed out) or cease to exist.
In Hebrew:
הכדור נמצא בידי העובדים: אל על קטנה הרבה יותר - או פירוק החברה?
In Hebrew:
הכדור נמצא בידי העובדים: אל על קטנה הרבה יותר - או פירוק החברה?
Apr 17, 2020 | 4:38 am
#17
FlyerTalk Evangelist
Join Date: Dec 2009
Programs: UA, LY
Posts: 13,179
Looks like the ball is now in ELAL's union court. Become a far smaller company (and get bailed out) or cease to exist.
In Hebrew:
הכדור נמצא בידי העובדים: אל על קטנה הרבה יותר - או פירוק החברה?
In Hebrew:
הכדור נמצא בידי העובדים: אל על קטנה הרבה יותר - או פירוק החברה?
Apr 17, 2020 | 8:29 am
#18
FlyerTalk Evangelist
Join Date: Feb 2002
Location: San Francisco/Tel Aviv/YYZ
Programs: CO 1K-MM
Posts: 10,859
The unions are only part of the problem, the other is LY's bloated and way overpaid mismanagement team.
El Al could be an amazing airline, but its handicapped by both the unions and a management team that are steeped on socialist Israel, not modern Israel.
El Al could be an amazing airline, but its handicapped by both the unions and a management team that are steeped on socialist Israel, not modern Israel.
Apr 17, 2020 | 2:43 pm
#19
Suspended
Join Date: Nov 1999
Posts: 24,150
That can be said for most of the Country. But to be fair its not any better over here where its basically the same situation and even worse in NYC with the Unions and Execs in any field
Apr 19, 2020 | 3:37 am
#21
Join Date: Feb 2008
Location: Paris, France
Programs: El Al Matmid, Air France Flying Blue Silver
Posts: 2,365
According to TheMarker (Hebrew, paywall), El Al is expected to lay off 2000 employees, including one quarter of its pilots, and significantly reduce its fleet.
Shuly
Shuly
Apr 19, 2020 | 2:00 pm
#22
FlyerTalk Evangelist
Join Date: Feb 2002
Location: San Francisco/Tel Aviv/YYZ
Programs: CO 1K-MM
Posts: 10,859
I guess they could dump a bunch of the older 738's but they have 15 brand new 787s, I suppose some of the 777 could be dumped, but right now, at rock bottom prices seems like a bad idea.
Apr 20, 2020 | 12:02 am
#23
Original Poster
FlyerTalk Evangelist
Join Date: May 2005
Location: TLV/LHR
Programs: BA GGL, IHG Diamond Elite Amb, HH Diamond, Avis PC, Hertz PC, Sixt Platinum
Posts: 13,004
We need 350 million shekel aid or we'll be shut within days, the airline says.
Apparently debt to customers (for cancelled flights) stands at 200 million shekels which they don't have, and so they are working on some incentive offering customers more value and flexibility for the tickets they are holding if they don't ask for a refund.
https://www.mako.co.il/news-money/20...m_medium=Share
Apparently debt to customers (for cancelled flights) stands at 200 million shekels which they don't have, and so they are working on some incentive offering customers more value and flexibility for the tickets they are holding if they don't ask for a refund.
https://www.mako.co.il/news-money/20...m_medium=Share
Apr 20, 2020 | 9:04 am
#24
Join Date: May 2000
Location: Zichron Yakov, Israel
Programs: BA Silver
Posts: 842
https://en.globes.co.il/en/article-e...aid-1001325887
According to the plan - the fleet will shrink from 48 to 36 planes and they will likely get rid of leased aircraft even if that means using older aircraft that they own.
Also - 2 of the 777's have been converted from passenger to cargo.
According to the plan - the fleet will shrink from 48 to 36 planes and they will likely get rid of leased aircraft even if that means using older aircraft that they own.
Also - 2 of the 777's have been converted from passenger to cargo.
Apr 20, 2020 | 10:56 am
#25
Join Date: May 2000
Location: HFA
Posts: 1,801
The market value of El Al as of today is 382M shekel, or about US$108M. According to the two sources cited above, El Al seeks a government-guaranteed loan of 350M US dollars, not shekel. That is three times its value. Why should the government back up 75-80% of this loan, which is quite unlikely to be returned, when it can buy (and nationalize) the entire airline for one third the cost?
Shuly
Shuly
Apr 21, 2020 | 5:19 am
#27
Suspended
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,077
There is probably no better time than now to let the airline be liquidated, if ever so inclined to let the airline be liquidated and let the market be the market in matching supply with demand.
Apr 21, 2020 | 5:44 am
#28
Join Date: Feb 2005
Programs: EL AL Matmid Platinum, BA Club GfL, Avis President's Club
Posts: 2,205
If any previous Israeli precedents are anything to go by, the likely outcome in such a situation would be just as bad, or even worse: The company would fold up, but it would only be sold if the buyers guaranteed what are called "the workers' rights". And guess what? Some Israeli socialist dreamer with too much cash (or, more likely, the ability to twist some arms to borrow it) will actually do that. Forget about reviving it as a profitable entity.
Apr 21, 2020 | 6:09 am
#29
Join Date: May 2000
Location: HFA
Posts: 1,801
El Al is becoming a cargo airline
El Al signed an agreement with logistics giant Kuehne+Nagel whereby the airline will operate 150 cargo flights from China to Italy until October (two daily flights). Two of El Al 777s have already been converted to a cargo-only configuration. Returning from Italy (where to? China or Israel? unclear) the flights will go via the UK, France, Germany, the Netherlands and Switzerland. Source: HaAretz (Hebrew)
Shuly
Shuly
Apr 21, 2020 | 7:28 am
#30
Suspended
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,077
If any previous Israeli precedents are anything to go by, the likely outcome in such a situation would be just as bad, or even worse: The company would fold up, but it would only be sold if the buyers guaranteed what are called "the workers' rights". And guess what? Some Israeli socialist dreamer with too much cash (or, more likely, the ability to twist some arms to borrow it) will actually do that. Forget about reviving it as a profitable entity.