El Al Israel Airlines is considering splitting into two companies as part of a new strategic plan – a low-cost carrier and a premium carrier.
Indeed, the airline needs efficiency measures and might face new competition due to the open-skies agreement that Israel signed with the European Union.
One of the two companies would specialize in premium long-haul flights to destinations such as the United States and the Far East, while the second would compete against low-cost airlines on European routes.
The two firms would share the same management.
The long-haul company would use El Al’s new wide-body planes, including Boeing 777s. The planes would be upgraded with fully reclining seats, and ticket prices would be set accordingly.
The second company would use El Al’s smaller planes, including Boeing 737s. This would help it compete against low-cost airlines, which are expected to increase Israeli operations once the open-skies treaty takes effect.
“The company is working to develop a strategic plan involving its future structure,” El Al said.
The company lost $49 million last year, and management is in talks with workers over new efficiency measures. El Al is asking workers to accept fewer free flights and to pay for meals based on their salary levels. It also wants to put up flight crews in hotels outside city centers.
In addition, the company’s chairman, chief executive and board members have accepted 20% salary cuts, while managers have seen their salaries cut by 7% to 10%.
{Haaretz/Matzav.com Newscenter}
so how are you flying? the Al? or the El?
Nice to see that top management is sharing the pain and taking salary cuts too. In the US if the company was in that kind of trouble they’d give themselves bonuses and cut lower level pay even more.
The Brisker Rav would see this as “Tzvei Dinim”
“so how are you flying? the Al? or the El?”
Neither, actually: I’m a British Airways man. They have better food, the cabin crew are much more polite to the passengers, their fares are competitive, and their planes are more modern and comfortable.
There is no contest there at all. If El Al (in whatever shape or form its management likes) does not improve it will go out of business.
Look what happened to Swissair, Olympic Airways, TWA, PanAm, Sabena and many others.
Improve your flight club, award points fairly and allow free flights without paying a $350 Matmid fee and much will be solved.
Many customers are flying other airlines because of the terrible frequent flyer program at elal. You can never actually book tickets when u want to fly.
So one would keep the EL Al name and be nominally shomer shabbos and the other won’t be (as in the past).