The main reason for the special price is Boeing’s worry that Airbus might penetrate the Israeli market.
El Al has decided to buy its fourth Boeing 777. “Globes” was the first to report El Al’s plans two weeks ago. El Al announced today that it expects to receive the plane in summer 2002. The company will receive the three planes purchased earlier in March.
Another airline that had ordered Boeing 777-200s, identical to the planes El Al ordered, canceled the order a few days ago, which enabled El Al to receive the planes instead. Boeing usually requires a year to fill orders. “Globes” has learned that EL Al paid Boeing $1 million to received the planes from the canceled order.
The fourth Boeing 777 will cost $100 million, excluding peripheral costs for spare parts and engines. Boeing’s official price for the 777 is $150-170 million. The main reason for the special price is Boeing’s worry that El Al will buy from its European competitor, Airbus, which is seeking to enter the Israeli market. No Israeli commercial airline – El Al, Arkia, IsrAir or Aeroel Airways – has yet bought from Airbus.
Published by Israel's Business Arena on 20 February 2001