According to El Al CEO Dina Ben Tal Ganancia, the airline is in discussions with Airbus about purchasing up to 30 A321neo aircraft to replace its fleet of Boeing 737-800/900 aircraft. In the airline’s quest to update its fleet of single-aisle aircraft, this action signifies a substantial shift in supplier dynamics.
As it considers the purchase of 737 MAX aircraft, Israel’s national airline is concurrently in talks with its longtime supplier Boeing. During a conference that was held in conjunction with El Al’s release of its quarterly results, Dina Ben Tal Ganancia spoke with Reuters and offered these insights.
According to Ben Tal Ganancia, a decision is anticipated to be made in the first few months of 2024. El Al anticipates obtaining large reductions, which will sharply lower the actual expenditure, even though the list prices suggest a potential investment of about $4 billion.
The discussions with Airbus are in fact serious, according to Ben Tal Ganancia. She emphasized that talks with both prospective suppliers are still ongoing, and that officials from each company have been to Israel to present their particular business plans to El Al.
El Al revealed its plans to expand its narrow-body fleet to between 28 and 31 aircraft by 2028, including the deployment of next-generation aircraft like the A321neo, in its Q2 2023 financial update presentation. According to projections made by the airline, its fleet of Boeing 787 aircraft would increase to 22 aircraft by 2028.