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EL AL Continues to Grow –
EL AL Signs Agreement to Purchase Four New Boeing 737-900 ER Passenger Aircraft

These are the most advanced narrow body aircraft in the aviation industry and will gradually replace the 757 fleet.
The new planes will serve EL AL passengers on short- and medium-haul flights, beginning in 2013.

The value of the transaction is estimated at 215 – 320 million dollars, based on the average market value of the model of a similar manufacture date, and on the accepted price lists in the industry (subject to adjustments, investments and the linkage formula agreed upon by the parties).

EL AL CEO Elyezer Shkedy said today that the airline is continuing to re-equip and renew the fleet by purchasing four new advanced aircraft. The agreement includes an option for two additional planes of this model that can be converted to a purchase option as well as an option for two additional planes. The Boeing 737-900ER aircraft are intended to increase Economy and Business Class capacity on the short- and medium-haul routes.

The 737-900ER is the most modern of Boeing’s 737 aircraft. The planes are furbished with the innovative “Sky Interior” similar to the 787 Dreamliner planes. Their configuration for EL AL will offer 160 seats in two service Classes. The 737-900ER aircraft feature many operational advantages including greater efficiency and cost effectiveness than competitive models.

The value of the overall transaction is estimated at 215 – 320 million dollars, reflecting the average market value for aircraft of this type and of a similar manufacture date, according to the accepted price lists in the industry (subject to adjustments, investments and the linkage formula agreed upon by the parties). The airline also has options to convert to different models.

Shkedy notes that the purchase of the planes is intended to meet an increasing demand for EL AL's various route ranges and to offer a larger choice of more qualitative seats, while improving the level of service and maximizing the customers’ flight experience.

Marlin Daily, World Boeing Deputy CEO said today that EL AL's decision to acquire these state-of-the-art 737-900ER planes for its fleet reinforces the genuine partnership and longstanding deep relationship between EL AL and Boeing. He noted that Boeing looks forward to continued cooperation towards renewing the EL AL fleet.

EL AL's fleet today comprises 14 737 planes. With the addition of the new aircraft, the fleet will have 18 such planes.

The agreement is contingent on approval by EL AL's Board of Directors.

 



 
Publish Date 09/02/2011