Two newcomers are interested in acquiring a club share Frequent Flyer of EL AL: Group flash andShufersal.
At the same time, contacts are being made with Bank Hapoalim for the purchase of 30% of the club’s shareholder. El Al has long stated that it will raise at least $ 100-150 million from the sale of a stake in its frequent flyer club, by January. In view of the current restrictions on aviation that weigh on its financial situation, it must be assumed that the agreement will be closed soon.
The contacts with the workers that began in October are for the sale of about 30% of El Al’s frequent flyer club at a value of $ 250 million to the club. Two other buyers are now interested: Bezeq, which has no customer club and shows no real possibility, and Shufersal, which operates its customer club, one of the most prominent and largest in the retail industry.
El Al’s Frequent Flyer Club has 2.1 million members, of which about 350,000 hold Play Card credit cards. The club generates a profit ranging from $ 20 million to $ 25 million a year to El Al. The annual turnover of Play Card credit card holders is estimated at $ 30 billion.
Shufersal, which operates through more than 300 branches and operates a website that accounts for a fifth of its sales, has a club with more than 2 million members, of which 660,000 hold a credit card issued by ICC – which is shared by both Shufersal and El Al clubs.
At the end of 2018, EL AL chose to continue operating its frequent flyer club through ICC after a struggle, in which Leumi Card hoped to transfer one of the most coveted consumer clubs into its hands. The agreement between ICC, which issues the club’s credit cards, and EL AL’s frequent flyer club, is valid until September 2029.
The agreement included a collaboration between the global Master Card company, in the framework of which the companies paid El a signing grant of NIS 125 million. El Al enjoys current royalties for the use of the credit card, for card fees and income from currency exchange.
The new parties to the deal are in the initial stages of exploring with El Al. For Bezeq, entering the field of customer clubs through such a large club may be a new and interesting activity. The person leading the contacts is the company’s chairman Gil Sharon.