It may soon be impossible to fly from Israel to Canada aboard an Israeli plane, because El Al’s management is thinking of discontinuing its flights to Canada, “Globes” has learnt. During a special meeting tomorrow, El Al will also examine the possibility of halting flights to Chicago. Passengers on the Tel Aviv-Chicago line belong to the same demographic groups as passengers on the Israel-Canada line.
El Al’s flights to Montreal were discontinued two years ago.
El Al’s management yesterday decided to stop flights to Manchester, Britain, and to operate charter, instead of regular, flights to Copenhagen, Denmark. The management also decided to discontinue flights to the Austrian capital of Vienna, and to start buying seats on Austrian Airlines aircraft.
El Al currently operates two weekly flights to Toronto via New York. The company also operates two flights, with similar formats, to Chicago. The reason for the planned discontinuation of flights to Canada is the company's inability to cover the fixed costs involved in their operation. The price of seats on the line is very low because of competition with Air Canada, and the number of passengers has fallen sharply due to the security situation.
El Al vice president commercial Uri Sirkis today told “Globes”: “We’ve no way of competing with Air Canada’s product. Air Canada flies many of its business passengers to the US via Canada, and the drop in the numbers of pilgrims from Toronto removes the justification for the continued operation of the line in its present format.”
El Al’s board of directors will today discuss the management's plan to buy a fourth medium-size Boeing 777 for more than $100 million. The plan has provoked opposition by board members, due to the company’s economic situation. El Al posted a $100 million loss in 2000.
The Government Companies Authority also objects to the acquisition of the aircraft, arguing that El Al’s fleet should not be expanded even as it reduces the number of its destinations.
Published by Israel's Business Arena on 3 April, 2001