El Al adds 3 new planes

The airline's fleet currently has 36 passenger and four cargo planes.

El Al Israel Airlines Ltd. (TASE: ELAL) has signed a letter of intent to buy three new Boeing 737-800s from a Spanish airline for $145 million. The planes will enter service in 2009, and follow the leasing of two Boeing 737-800s that will enter service this year.

The price tag includes the purchase of the planes and the installations to meet El Al's needs. El Al said it would finance 15% of the investment from its own resources and the rest with a loan.

The planes will replace five Boeing 757s, which El Al plans to lease to other airlines as either passenger or cargo planes.

El Al's fleet currently has 36 passenger and four cargo planes. The airline's management will soon have to decide whether to sell or lease four Boeing 747-200 cargo planes and buy two 747-400s cargo planes to replace them. The airline reportedly believes that it will be better to operate fewer, but more efficient planes.

Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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