ElAl effectively shutdown...

Old Apr 21, 20, 11:31 pm
  #31  
 
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Originally Posted by shuly View Post
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
Brilliant move. K&N is the premier pharma and medical equipment logistics provider and with the exorbitant rates being charged for the cargo now, this could be a very, very profitable business deal. IMO EL AL could make more money on these flights that it would have generated from a large part of its passenger operation for that period. It's costing 5-10-20X more to ship medical supplies now. The cargo and logistics companies are making windfall profits, so I expect that El Al just got itself a nice lifeline.

Anyway, there is absolutely no way that the physical asset and talent pool will be allowed to disappear. El AL is essential to national security. Maybe the airline gets restructured. Maybe they call it something else, maybe it gets a bit smaller, but there will always be a national airline. Same as the UK, or Canada or France will always have an national airline. One thing every country has learned from the Covid 19 catastrophe is that core capabilities must be maintained, even at a national cost. An airline, especially for a country like Israel, is a must have asset.
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Old May 10, 20, 1:54 am
  #32  
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Important day, and we should learn ElAl's fate by this evening.
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Old May 10, 20, 7:24 am
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It seems Elal converted 20 aircraft from pax to cargo
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Old May 10, 20, 7:26 am
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Originally Posted by HumbleBee View Post
It seems Elal converted 20 aircraft from pax to cargo
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Old May 10, 20, 10:40 am
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Originally Posted by clubman View Post
Important day, and we should learn ElAl's fate by this evening.

any news ?
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Old May 10, 20, 12:51 pm
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Originally Posted by LY777 View Post
any news ?
https://www.timesofisrael.com/livebl...-entry-2302910
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Old May 10, 20, 4:37 pm
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Old May 10, 20, 5:03 pm
  #38  
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More details in ynet (Hebrew).

Some of the conditions include cash infusion by the Borowitz family, which controls El Al, improved cost structure / operating efficiency, agreement of the unions and deferral of aircraft lease and loan payments.
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Old May 11, 20, 5:11 am
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Further details in Globes
https://en.globes.co.il/en/article-t...rms-1001328055

End of free flights for employees and family.
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Old May 11, 20, 10:01 am
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Just glad Elal is continuing.
I am just a pleased customer and fortunately didn't need them to retrieve me from being stranded in some foreign country.
They will always have my support.
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Old May 11, 20, 10:01 am
  #41  
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Originally Posted by nombody View Post
Further details in Globes
https://en.globes.co.il/en/article-t...rms-1001328055

End of free flights for employees and family.

I can see ending it for former employees and restricting it to how many family members may fly at any given time and further restricting it to a spouse and kids under 18 and how many trips can be taken each year . But like most airlines I dont feel its something that s/b terminated

I understand the govt will only be backing up the loan and not actually giving any money over Yet, but I dont see then loan being repaid if LY isnt flying and making a profit

I fully understand why Israel needs a National carrier but who says it has to be ElAl, I see ElAl simply as a money pit unless everything is revamped from top to bottom and no way is that gona be happening
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Old May 13, 20, 10:02 am
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El Al CEO appeals to Netanyahu to lighten the terms

https://www.timesofisrael.com/el-al-...ys-loan-offer/
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Old May 14, 20, 4:47 am
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Originally Posted by Fly613 View Post
In addition to the conversions, they seem to have also invented a new aircraft type - the 787-800
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Old May 14, 20, 7:29 am
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. .?. theres a 787-8 and 787-9
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Old May 17, 20, 8:34 am
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El Al loses $140 million due to LOW fuel prices

https://www.themarker.com/markets/.premium-1.8850705

Article behind paywall - it seems that El Al has lost potentially some $140 million due to hedges on the price of jet fuel. Since the price has collapsed, El Al has to put down an additional $49 million collateral on the hedges. If the price of jet fuel goes up then the loss can be minimized.

Another hedge on the Libor interest rate will cost El Al another $50 million.
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