El Al Airlines has announced the purchase of three 787-9 Dreamliners for $730 million

El Al Airlines has announced a significant expansion of its aircraft fleet with the signing of a deal with Boeing, the American aerospace giant. The deal, valued between $650 million to $730 million, involves the purchase of three 787-9 Dreamliners. These new aircraft are scheduled for delivery in 2029 and 2030.

The agreement also includes an option for El Al to purchase an additional six planes of the same model. Additionally, the deal encompasses the acquisition of replacement engines for three existing El Al 787 aircraft from Boeing.

The signing of this deal comes at a challenging time for Boeing, which has been grappling with a series of safety issues affecting some of its planes. El Al has sought clarification from Boeing following a recent incident involving a Latam Dreamliner, which experienced an unexpected plunge during a flight to New Zealand.

Currently, El Al operates 16 Boeing 787 aircraft, with 12 of them being the 787-9 model. Over the next two years, the airline expects to receive three more 787 aircraft from Boeing. With the addition of the newly ordered planes, El Al aims to have a fleet of 22 Boeing 787 aircraft by the end of the decade. If it exercises its option to expand the deal, the fleet could grow to 28 aircraft by 2030.

El Al's decision to expand its fleet aligns with the company's strategic plan, aimed at enhancing operational flexibility and increasing its scope of activities. To finance the transaction, El Al intends to raise capital through an Initial Public Offering (IPO) on the Tel Aviv Stock Exchange. The offering, valued at NIS 1.7 billion, is subject to approval from the company's board of directors and the stock exchange.

CEO Dina Ben Tal Gannasia emphasized that the aircraft purchase and the planned IPO reflect El Al's commitment to its strategic objectives. She highlighted the airline's critical role during times of crisis, such as the recent conflict, where El Al maintained essential air connections to and from Israel. Ben Tal Gannasia also called for the resumption of flights by foreign airlines to Israel, stressing the importance of maintaining international air routes for the country's connectivity and economic wellbeing.