El Al in merger talks with Arkia
#1
Original Poster
Join Date: May 2000
Location: Zichron Yakov, Israel
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El Al in merger talks with Arkia
https://m.maariv.co.il/news/israel/Article-871544
El Al officially notified the Tel Aviv Stock Exchange that they are in merger talks with Arkia.
This is a step that most financial analysts have expected for some time as the local Israeli market is not big enough to justify 3 airlines. But to be honest,.El Al's real.competition now is from the big 3 American carriers who are eating away at El Al's loads from US destinations.
El Al officially notified the Tel Aviv Stock Exchange that they are in merger talks with Arkia.
This is a step that most financial analysts have expected for some time as the local Israeli market is not big enough to justify 3 airlines. But to be honest,.El Al's real.competition now is from the big 3 American carriers who are eating away at El Al's loads from US destinations.
#2
Join Date: Nov 2009
Location: Montréal
Programs: Air Canada, Hyatt
Posts: 1,376
https://m.maariv.co.il/news/israel/Article-871544
El Al officially notified the Tel Aviv Stock Exchange that they are in merger talks with Arkia.
This is a step that most financial analysts have expected for some time as the local Israeli market is not big enough to justify 3 airlines. But to be honest,.El Al's real competition is now is from the big 3 American carriers who are eating away at El Al's loads from US destinations.
El Al officially notified the Tel Aviv Stock Exchange that they are in merger talks with Arkia.
This is a step that most financial analysts have expected for some time as the local Israeli market is not big enough to justify 3 airlines. But to be honest,.El Al's real competition is now is from the big 3 American carriers who are eating away at El Al's loads from US destinations.
If LY could fly 7 days a week, they'd stand a very good chance at competing. They have a good onboard product, especially on the 737's when compared to what the euro carriers offer on narrowbody.
The 787's are in line with industry standards as well. The Y, Y+ & J cabins are all competitive.
It remains to be seen what happens with LY, but I think a model similar to Austrian Airlines might serve them well: focus on the regional market (Europe + CIS + Middle East) & retain only the most profitable trunk routes: New York, Los Angeles, Toronto, Hong Kong, Beijing. If other places like San Fransisco, Mumbai, Bangkok, Tokyo, Chicago, etc... are profitable then, by all means, keep those routes too- but I suspect that LY would be looking to reduce costs and maximize profits.....
#3
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I personally enjoy(ed) LY's (787 and737J) hard product and parts of the soft product.
I agree that LY should focus on the most important destinations, particularly where there is less LCC competition, and where their top corporate accounts say is important. I suspect that a bunch of Europe is simply not in the cards for LY given the LCC competition and their cost structure. The newer north american destinations probably also don't make sense, but I'm not privy to the economics of those routes -- I do know that SF and chicago are both better served by United.
I think LY would do much better to partner with AA again and get connectivity if they wanted to properly serve ORD/LAX/MIA.
Arkia merger could be interesting if they can run a 7day/wk schedule and operate LY's aircraft against shabbat restrictions, and with lower cost labor rates.
I agree that LY should focus on the most important destinations, particularly where there is less LCC competition, and where their top corporate accounts say is important. I suspect that a bunch of Europe is simply not in the cards for LY given the LCC competition and their cost structure. The newer north american destinations probably also don't make sense, but I'm not privy to the economics of those routes -- I do know that SF and chicago are both better served by United.
I think LY would do much better to partner with AA again and get connectivity if they wanted to properly serve ORD/LAX/MIA.
Arkia merger could be interesting if they can run a 7day/wk schedule and operate LY's aircraft against shabbat restrictions, and with lower cost labor rates.
#4
Moderator: Travel Safety/Security, Travel Tools, California, Los Angeles; FlyerTalk Evangelist
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Take a look at El Al owner Kenny Rosenberg's Interview which is linked in this thread:
An international company that doesn't fly on the Sabbath and holidays?
"Traditionally, since the 1950s El Al has not flown passengers on Shabbat and that is El Al's status quo. When you interview me in another year, you will see that it is possible to be efficient and international, even when the company works six days a week. The workers need a day of rest and we'll take the status quo and make it more efficient. We haven't changed the policies and it has been that way at El Al for years and we don't want and we don't need to change it. We need to mend the operations of the company in those six days that it does work. The seventh day will already mend itself."
"Traditionally, since the 1950s El Al has not flown passengers on Shabbat and that is El Al's status quo. When you interview me in another year, you will see that it is possible to be efficient and international, even when the company works six days a week. The workers need a day of rest and we'll take the status quo and make it more efficient. We haven't changed the policies and it has been that way at El Al for years and we don't want and we don't need to change it. We need to mend the operations of the company in those six days that it does work. The seventh day will already mend itself."
#5
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Join Date: May 2000
Location: Zichron Yakov, Israel
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El Al signs deal to acquire Arkia
https://www.reuters.com/business/aerospace-defense/israels-el-al-airlines-signs-non-binding-deal-buy-smaller-rival-arkia-2022-02-03/
Does anyone think this deal makes any business sense? Why do they need to acquire Arkia to fly any route? Nothing was stopping them from flying to Eilat Ramon airport.
Does anyone think this deal makes any business sense? Why do they need to acquire Arkia to fly any route? Nothing was stopping them from flying to Eilat Ramon airport.
#6
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https://www.reuters.com/business/aerospace-defense/israels-el-al-airlines-signs-non-binding-deal-buy-smaller-rival-arkia-2022-02-03/
Does anyone think this deal makes any business sense? Why do they need to acquire Arkia to fly any route? Nothing was stopping them from flying to Eilat Ramon airport.
Does anyone think this deal makes any business sense? Why do they need to acquire Arkia to fly any route? Nothing was stopping them from flying to Eilat Ramon airport.