El Al Forced to Lay off 200 Employees

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elalThe official airline of Israel – El Al – has announced that due to a serious increase in fuel prices, it is laying off 200 employees.

The cost of Jet fuel has increased by 47 percent, raising El Al’s jet fuel expenditure from $160 million to $205 million in the third quarter, according to the Israeli business daily Globes. The airline’s net profit also fell from USD$42.5 million a year ago to half of that total today.

According to Reuters, a number of senior El Al executives have also agreed to pay cuts, after the airline announced a 51 percent drop in its third-quarter net profit.

Chief executive Elyezer Shkedy said that due to the higher fuel prices, El Al is streamlining operations and cutting costs, including the 200 layoffs. Earlier this month, El Al cancelled its route that took passengers from Tel Aviv to Sao Paulo and will be quickly phasing out aircraft that are not energy efficient.

“We are committed to and prepared for a continuing effort to cope with the economic changes in Israel and around the world, with challenging market conditions and competition,” Shkedy told AIRWISE.com

Shkedy, along with El Al chairman Amikam Cohen each agreed to a 20 percent cut in their monthly salaries starting in December and for all of 2012. Other board members also agreed to a 20 reduction, while company vice presidents will take a 10 percent pay cut.

{Shalom Life/Matzav.com Newscenter}

1 COMMENT

  1. “Shkedy, along with El Al chairman Amikam Cohen each agreed to a 20 percent cut in their monthly salaries. Other board members also agreed to a 20 reduction, while company vice presidents will take a 10 percent pay cut.”

    Any idea how much these guys make, while services to passengers are cut?

    BTW if you take the midnight flights be prepaired: no meal, no supper – just a sandwich and small bottle of water. Besides the halachic problems of washing, etc, they’re flieshig even though it’s just a sliver of meat inside.

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