El Al problems

At a point of time when it is taking delivery of the first of six New Generation Boeing 737-900ERs Israel’s El Al airline is coming under financial  pressure.

El Al's 737s will feature the new Boeing Sky Interior.  This interior is the latest in a series of enhancements for both airline and passengers.  It introduces new LED lighting and curved architecture that welcomes travellers onboard and creates a greater sense of spaciousness and comfort in the cabin.  The interior also features modern, sculpted sidewalls and overhead bins that disappear into the ceiling, yet carry more bags.

FIMI, Israel's largest private investment fund, in April agreed to inject cash into El Al in return for up to 47% of the airline.  FIMI was to form a controlling group in El Al with Knafaim Holdings, which owns 39%.

The deal was contingent on El Al reaching a new collective agreement aimed at allowing the carrier to deal with an increasingly competitive environment.  It was supposed to close on 31 July but FIMI gave El Al an extension.

"FIMI has informed El Al that it is cancelling the agreement to invest because the conditions had not been met", El Al said in a statement to the Tel Aviv Stock Exchange. www.elal.com

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