Strategic Decision: El Al Selects Boeing for the New Aircraft Fleet in a Landmark Deal

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by Ifi Reporter - Dan Bielski Category:Financial Jun 10, 2024

After extensive negotiations spanning over a year with both Airbus and Boeing, El Al Airlines, controlled by the Rosenberg family, has decided to negotiate with Boeing for its new aircraft fleet exclusively. The decision marks a significant milestone for the company, leading to the largestĀ 

El Al plans to purchase and lease approximately 30 Boeing 737 Max narrow-body aircraft, with an estimated value of $2-2.5 billion. Deliveries are expected to commence in 2027 and span several years, rejuvenating and expanding the airline's fleet.

Strategic Fleet Expansion

This procurement process aligns with El Al's strategic plan, complementing a recent deal for nine Boeing 787 Dreamliner planes. The new aircraft will gradually replace the current fleet of Boeing 737-800 and Boeing 737-900 planes, potentially increasing capacity and seat supply as needed.

Transition Plan

Some of the older planes may operate concurrently with the new fleet, allowing flexibility in meeting demand. Additionally, aircraft phased out by El Al may be transferred to its subsidiary, Sun Dor.

Continued Partnership with Boeing

Despite recent safety incidents surrounding Boeing, El Al emphasizes its confidence in the manufacturer. The decision to continue working with Boeing is based on the airline's existing inventory of spare parts and familiarity with Boeing aircraft.

During negotiations, El Al prioritized safety, ensuring that the planes meet the highest international standards and safety regulations. Discussions with Boeing proceeded only after assurance of compliance with rigorous safety protocols.

El Al's strategic decision reflects its commitment to modernizing and enhancing its fleet to meet evolving industry standards while prioritizing passenger safety and satisfaction.

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