Dei'ah veDibur - Information & Insight
  

A Window into the Chareidi World

10 Teves 5765 - December 22, 2004 | Mordecai Plaut, director Published Weekly
NEWS

OPINION
& COMMENT

OBSERVATIONS

HOME
& FAMILY

IN-DEPTH
FEATURES

VAAD HORABBONIM HAOLAMI LEINYONEI GIYUR

TOPICS IN THE NEWS

HOMEPAGE

 

Produced and housed by
Shema Yisrael Torah Network
Shema Yisrael Torah Network

 

 

 

 

 

 

 

 

 

 

NEWS
El Al Privatization Becomes a Reality

By G. Kleiman

After 55 years as a public corporation El Al was officially privatized on Sunday and will now be controlled by businessman Yisrael Borovich and his brother.

Economists say one of the preeminent decisions the new owners will have to face is the question of flights on Shabbos. Officially El Al has not operated flights on Shabbos ever since the government made a decision years ago to forbid the national airline from doing so. In practice a portion of regular El Al flights do take place on Shabbos through the corporation's subsidiary, Sun-Dor, and El Al has flown freight on Shabbos throughout the years.

Reporter Yoav Yitzhak says Borovich knows this is a sensitive issue. Though El Al will no longer be obligated by government decisions and political considerations, as a businessman he is aware of the religious public's power as consumers. Observers speculate he will not officially declare flights on Shabbos during this initial stage but will expand the Shabbos flight schedule through Sun-Dor.

Former Transportation Minister Avigdor Lieberman and Finance Minister Binyamin Netanyahu worked hard to promote privatization in order to allow the company to compete with other international airlines. Economists predict fares will decrease following the recent price hike but that the real price war will not begin until summer.

Arkia control owner Kanafayim realized its El Al share option on Sunday and now owns half of the company shares. Brothers Yisrael and Dedi Borovich, who own 33.7 percent of Kanafayim, will now take over from the State of Israel as company owners and directors. The other key figures in the company, especially the CEO, are expected to be chosen at the first executive board meeting. The board members already known include former IDF Chief of Staff Amnon Lipkin-Shachak, former Prime Minister's Office Director-General Avigdor Yitzchaki and Granit CEO Ami Sagis.

Kanafayim is slated to issue a tender for the sale of Arkia Airlines, including its entire marketing apparatus and partnerships with other companies. The sale will be executed in accordance with a permit the company received in the past from Corporate Antitrust Commissioner Dror Strum to merge with El Al. The sale will include all of the marketing and other companies associated with Arkia, such as Kishrei Te'ufa, ISTA, Arkia International, Kanfei Rakia and other companies.

 

All material on this site is copyrighted and its use is restricted.
Click here for conditions of use.