El Al Israel Airlines will acquire a 20% stake in Holiday Lines, a charter flights company. Sources inform ''Globes'' that Government Companies Authority director general Yaron Jacobs and Minister of Transport Ephraim Sneh recently approved the deal.
The deal still requires approval by the ministerial privatization committee. El Al Israel Airlines has been categorized as a company undergoing privatization since 1998, which is why the deal must be approved by the committee. A date has not yet been set for the committee to convene, which is holding up its discussion of El Al's privatization.
Holiday Lines is currently owned by Arnon Englander (50%) and Rimon Tours (50%), which entered into the partnership this year. Following El Al's entry into the partnership, their holdings will be diluted to 40% each.
Holiday Lines started operating in April 1999 as a charter flight and holiday company. In this year's tourist season, the company flew to 18 destinations in Western Europe.
The company's sales totaled NIS 22.7 million in 2000. Partner and general manager Arnon Englander said revenue was expected to grow 50% this year. He said the company would fly 20,000 passengers overseas this year.
Published by Israel's Business Arena on 27 November, 2001