David Maimon told the "Globes" Israel Business Conference that fares have been cut 10% in recent months and will continue to fall.
El Al Israel Airlines Ltd. (TASE: ELAL) CEO David Maimon told the "Globes" Israel Business conference today that he expects air fares to fall further. He said, "The principles of success are innovation, swiftness and creativity. We have procured Dreamliner passenger jets, which will completely change the air travel experience from the old aircraft, while saving 205 in fuel. Our website is Israel's largest commercial site with sales of $278 million. We were quick in establishing UP, and we fly it to five destinations. We are studying the business results of air carriers worldwide and profit is very low. More people are flying today and prices are lower. We have cut fares 10% in the past six months and prices will continue to fall."
He added, "We must seek additional sources of revenue. Our asset is our brand which is one of Israel's most coveted. We launched a credit card a year ago. It is a phenomenal success with high turnover and a tool for keeping customers as well as a tool that connects them to El Al. we have a small incubator for startups with Microsoft. There will be 10 startups there and we will be a beta site for them. Our desire is to be the first carrier to use these products and market them. I appointed a 28 year-old manager for this and he is doing wonderful work."
Maimon continued, "We have set up a large insurance company with insurance agents. We give consumer credit and we are interested in buying a stake in a credit company and there are many ventures that we think we can be part of. We want to be the world's largest company for kosher food catering. These are things that will lead us towards new revenue sources."
Published by Globes [online], Israel business news - www.globes-online.com - on December 7, 2015
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