El Al, the Israeli flag carrier, is at a critical juncture in its fleet expansion plans as it faces imminent decisions regarding an order for approximately 30 narrow-body jets. The airline is currently deliberating between Airbus’ A321neo jets and Boeing’s 737 MAX aircraft, a decision that is pivotal as it seeks to modernize and expand its all Boeing fleet.
According to El Al’s CEO, Dina Ben Tal Ganancia, the urgency of this decision is underscored by the potential loss of delivery slots. “We will probably want to take a decision soon, otherwise we’re going to lose the slots,” she remarked during an airline conference in Dubai.
While the negotiations with both Airbus and Boeing are ongoing, El Al’s Chief Financial Officer Yancale Shahar indicated last week that the airline anticipates making a decision within a few weeks. He also estimated that the order would approximate $2 billion in value.
As the airline aims to start receiving the new jets by 2026-27, it acknowledges certain challenges, particularly with Airbus, which is reportedly sold out until 2029. This situation places additional pressure on the decision-making process and highlights the competitive dynamics in the aerospace industry.
Adding to the complexity of El Al’s decision is the current state of Boeing, which is grappling with significant industrial and safety issues that have necessitated a management overhaul and attracted scrutiny from U.S. lawmakers. This has resulted in production delays, affecting the availability of new jets. On this, Ben Tal Ganancia expressed a tough yet hopeful outlook for Boeing’s recovery: “Boeing had no other choice than to transform the company and fix the many issues it faces.”
The impending decision by El Al not only reflects the airline’s strategic needs but also signals potential shifts in industry partnerships and competitiveness, particularly in light of Boeing’s challenges and Airbus’ tight production schedules.