In so doing, El Al will expand the deal whereby it bought five Boeing 737-00 and 737-800.
El Al intends to expand the deal whereby it bought from US company Boeing five Boeing 737-00 and 737-800 passenger planes, "Globes" has learnt. The 1998 deal is worth about $200 million.
El Al has now decided to look into the possibility of acquiring another Boeing 737-800, whose price is $35 million. El Al bought the aircraft from Boeing at a considerable discount from the market price, receiving three Boeing 737-800 at $34 million each, and two 737-00 at $30 million each.
At the time, Boeing imposed a total blackout on the details of the deal, so as to prevent other carriers from demanding similar terms.
Bank Hapoalim, which was chosen to provide financial coverage for the 1998 aircraft deal, offered El Al $200 million in low-interest credit over 20 years. It is believed that the bank will provide financial coverage for the purchase of the additional plane as well.
Published by Israel's Business Arena on 14 June, 2000