El Al reports this morning that on 15 In December 2022, the company signed a proposal document with the aircraft manufacturer Boeing for the purchase of a new Boeing 787-9 model aircraft. This follows on from previous El Al reports in which the company updated that it will work to increase production capacity by equipping itself with an additional Dreamliner aircraft. Following the trend of increasing demand for flights and in accordance with the proposal, El Al will purchase from Boeing a Dreamliner aircraft equipped with two Rolls Royce engines, originally manufactured for another customer, while making certain adjustments that will be made by Boeing for El Al’s needs, according to the company’s decision. The expected delivery date of this aircraft is during the second quarter of 2024 and it will be the 17th Dreamliner model aircraft in El Al’s aircraft fleet.
At the same time as El Al signed the offer, El Al signed an agreement with the Boeing company that regulates the updated delivery date of the Boeing 787-8 aircraft, which is the 16th aircraft in the equipment deal of as reported in March 2022. As you remember, the original delivery date of the Dreamliner The 16th was postponed due to the Corona crisis so that its updated delivery date will be in the third quarter of 2023. As of the date of the report, El Al is still examining several alternatives to finance the purchase of the 16th and 17th aircraft, including a combination of different financing routes, and a decision has not yet been made in this regard.
The 16th and 17th aircraft will join the company’s fleet of Dreamliner aircraft, which includes 12 787-9 aircraft and 3 787-8 aircraft operated by the company. The Dreamliner planes will allow El Al to develop its route network and fly to distant destinations, including Tokyo and other destinations in the East, El Al destinations in the USA and more. The new fleet is more efficient in fuel consumption and offers an upgraded flight experience.
Dina Ben-Tal Gnansia, CEO of El Al: “The purchase of the 17th Dreamliner and the addition of new aircraft to the company’s fleet is another significant milestone in El Al’s growth and renewal process. As part of the company’s strategy, which puts the customer at the center, we invest hundreds of millions to improve the service and product and bring our customers the cutting edge of the world of aircraft. El Al and Boeing have been walking hand in hand for many years and I welcome the continued cooperation with Boeing. I would like to thank the company’s board of directors for their support and guidance. We will continue to increase our production capacity, in order to meet demand and continue to provide our customers with the best and safest service and product in the world.’
Amikam Ben-Zvi, Chairman of El Al’s Board of Directors: “I want to thank the controlling owners of El Al for their support all along the way. We continue to move forward in a new way, this is reflected in the business parameters, the demand for flights, the excellent financial results and the increase in production capacity. I welcome this significant transaction and am happy that we continue to cooperate with the Boeing Company. This deal is first and foremost good news for our customers and we will continue to act on their behalf.’
It should be emphasized that the completion of the offer as well as the entry into force of a document regulating the delivery date of the 16th aircraft are subject to the signing of final documents regulating the purchase of the 17th aircraft.