El Al to purchase around 30 Boeing 737 MAX aircraft in $2-2.5 billion deal
El Al to purchase around 30 Boeing 737 MAX aircraft in $2-2.5 billion deal
The airline's board of directors decided to hold exclusive negotiations with Boeing in preparation for signing a strategic agreement, which will be the largest in the company's history
El Al has decided that its new aircraft fleet will be made by the American Boeing company, the airline controlled by the Rozenberg family revealed on Monday. The company's announcement came after over a year of negotiations for the renewal of its aircraft fleet with both Airbus and Boeing. In recent days, the company's board of directors decided to hold exclusive negotiations with Boeing in preparation for signing a strategic agreement, which will be the largest in the company's history.
As part of the emerging deal, El Al will purchase and lease approximately 30 Boeing 737 MAX narrow-body aircraft for about $2-2.5 billion. The process of delivering the new planes to El Al will begin in 2027 and last several years.
The company, managed by Dina Ben Tal Ganancia, stated this evening that the new procurement process will be a significant step in rejuvenating and increasing its aircraft fleet. This deal will be added to the agreement signed about two months ago with Boeing for the purchase of nine Boeing 787 Dreamliner planes, as part of the company's strategic plan.
The planes purchased from Boeing or leased from other airlines will, in a phased process, replace El Al's current fleet of Boeing 737-800 and Boeing 737-900 planes. Some of the new planes may be operated alongside older planes to increase capacity and seat supply according to demand. Additionally, some of the planes El Al will retire with the arrival of the new ones may be transferred to its Sun d’Or subsidiary.
The decision to hold exclusive negotiations with Boeing was influenced by the fact that all of El Al's planes were manufactured by Boeing. This existing relationship ensures a large inventory of spare parts that will also be adequate for the future fleet, allowing a smoother transition between the new models.
