ISRAEL - El Al in Talks to Buy Airbus Jets
El Al Israel Airlines is in “serious” talks with planemaker Airbus to buy as many as 30 A321neo jets, El Al’s CEO said, in what would be an historic change of supplier as it looks to replace its short-haul fleet.
A decision likely would be made early in 2024, Ben Tal Ganancia said. At list prices the investment would be near $4 billion but El Al would likely pay far less after discounts.
The A321neo, with more seats and longer range, has been steadily winning market share in the lucrative top end of the single aisle market.
This year it launched flights to Istanbul, Dublin and Tokyo and expects to add Mumbai and Fort Lauderdale later in 2023.
El Al is targeting $3.5 billion in annual revenue and 7.7 million passengers in 2028 for a 24% market share at Ben Gurion International Airport near Tel Aviv. It expects revenue of $2.4 billion in 2023, up from $2.0 billion last year.
Revenue grew 22% to $630 million, above $584 million in the second quarter of 2019 before the pandemic hit travel.
Its load factor—a measure of seats filled—reached 87%, from 82% a year earlier, while El Al maintained a 23% market share at Ben Gurion International Airport.
-www.reuters.com, 10 August 2023
Arno's Commentary
While the global economy is most difficult to predict, one thing remains clear: people today travel more than ever before in human history. Internationalization is the key to success, as El Al has experienced in recent decades. Thus, they are seriously considering France’s Airbus as well as Boeing to replace their aging fleet. Tourism to Israel reached its highest at 4.1 million visitors in 2019. Israel’s Tourism Bureau estimates that these numbers will grow even more in the not-too-distant future.
When we consult Scripture, we find that globalism is the future, albeit temporarily.
For believers, we have the promise: “For the Lord himself shall descend from heaven with a shout, with the voice of the archangel, and with the trump of God: and the dead in Christ shall rise first: Then we which are alive and remain shall be caught up together with them in the clouds, to meet the Lord in the air: and so shall we ever be with the Lord. Wherefore comfort one another with these words” (1 Thessalonians 4:16-18).
Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.
