EL AL to buy new aircraft

EL AL has signed an agreement with Boeing for the acquisition of two long-distance wide-bodied 777-200 ER aircraft, which are expected to enter service in 2007.

The contract was signed after the Board of Directors gave approval for the purchase, and constitutes the first step towards implementing the objectives of the EL AL 2010 strategic plan.

The cost of each aircraft, in 2005 terms, will be between $117 million to $123 million, depending on the extras and special installations needed to adapt the planes to EL ALs needs. EL AL expects to finance about 15% of the cost of the airplanes from its own independent means and the remainder through loans. Purchase of the aircraft is conditional upon a preliminary commitment from the US agency for Imports and Exports that will enable us to obtain financing guaranteed by that authority.

The purchase of these two aircraft is one of our first steps towards fulfilling the objectives of our strategic plan and towards implementing the company vision.

Haim Romano, President said; “ We are investing considerable resources in these aircraft with a view to the future, in order to develop and strengthen the airline and the EL AL brand, and to contribute to its renewal. Using these aircraft, we can prepare our fleet for the expected growth in the passenger market on long-range routes while reducing operational costs on them. In this way, we will be able to provide uncompromising better quality service to our customers.”