El Al, Boeing close to plane lease deal for 2011-15

El Al is also considering not selling two Boeing 767s after receiving two 777s this summer.

El Al Israel Airlines Ltd. (TASE: ELAL) plans to lease six or seven planes from Boeing Co. (NYSE:BA) in 2011-15. El Al chairman Israel Borovich and CEO Haim Romano have reached an agreement with Boeing representatives to this effect.

El Al decided to lease planes after cancelling its option to buy eight Boeing 787 Dreamliners, because of the contractual terms. The decision surprised airlines, because it is highly unusual to cancel such options, given the shortage of available planes.

El Al is also considering not selling two Boeing 767s after receiving delivery of two Boeing 777s this summer. El Al may use the 767s on its increasingly popular Moscow, Bucharest and other routes. The 777s will fly to London, Paris, New York and Far Eastern destinations.

Published by Globes [online], Israel business news - www.globes.co.il - on May 3, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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