El Al announced on Monday its decision to select Boeing, an American aircraft manufacturer, for a monumental renewal of its fleet. Following an extensive year-long negotiation period with both Boeing and Airbus, the Israeli carrier’s board of directors has opted for exclusive talks with Boeing, setting the stage for a strategic agreement that is touted as the largest in El Al’s history.
This forthcoming deal involves the acquisition and leasing of approximately 30 Boeing 737 MAX narrow-body aircraft, with an estimated value between $2 and $2.5 billion. The introduction of these aircraft into El Al’s lineup is scheduled to commence in 2027 and will extend over several years.
Dina Ben Tal Ganancia, the CEO of El Al, emphasized that this procurement is a key component of the airline’s strategy to modernize and expand its fleet. This announcement builds on a prior agreement from about two months ago, where El Al agreed to purchase nine Boeing 787 Dreamliner planes.
The integration of the new Boeing 737 MAX aircraft will lead to the phase-out of El Al’s existing fleet of Boeing 737-800 and Boeing 737-900 models. The transition plan also includes augmenting flight capacity and seating availability to match fluctuating demand. Moreover, some of the retiring aircraft will potentially be reassigned to El Al’s subsidiary, Sun d’Or.
A significant factor in El Al’s decision to proceed exclusively with Boeing was the long-standing relationship between the two companies, which has ensured a robust supply of spare parts—a critical asset that will support both the current and future fleet, facilitating a seamless integration of the new models.