Talks move forward on El Al's acquisition of Israir

El Al  photo: Moshe Shai
El Al photo: Moshe Shai

The Israeli carrier is examining merging Israir into its charter flight unit Sun d'Or.

El Al Israel Airlines Ltd. (TASE: ELAL) reported this morning to the Tel Aviv Stock Exchange that the company, "is examining the possibility of initiating and developing operations through cooperation with enterprises in the aviation and tourism industry, including by establishing an independent wholesale tourism body, merging with a tourism company or buying an existing tourism/wholesale company, and this includes talks with IDB Tourism regarding an arrangement with Israir."

The Israeli carrier also makes it clear that it is talking about a possible deal between Sun D'Or and Israir Airlines and Tourism Ltd., and the parties have decided to, "deepen examinations and only after this would the sides make a decision on how to proceed."

El Al stressed that no Memorandum of Understanding (MoU) has yet been signed on the matter. "The deal, if and when it is carried out, will not have any substantive influence on El Al's financial results."

El Al first reported that it was in initial talks with Israir back in May 2015.

Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

El Al  photo: Moshe Shai
El Al photo: Moshe Shai
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