Difficult market conditions, namely the rise in jet fuel prices, have caused El Al Israel Airlines Ltd. (TASE: ELAL) to take steps to streamline operations. The El Al spokesperson announced today that it would fire 200 temporary workers by the end of the year.
El Al added that the streamlining process would include: removing old, uneconomical airplanes from operation; cancelling and reducing the number of unprofitable routes; and organized group vacation times. "These steps are being taken in an effort to return to profitability," the announcement stated.
"Efficiency is the order of the day at airlines worldwide, including El Al. The future of the company and its customer service are our guiding light," the announcement said.
El Al's share price fell 0.6% in morning trading to NIS 0.78, giving a market cap of NIS 338 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2011
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