Several weeks ago, there were rumors that EL AL was considering refreshing its narrow body fleet. Well, this is now official, as EL AL has just placed its largest aircraft order in history.
EL AL places big Boeing aircraft order
EL AL will be modernizing and growing its narrow body fleet, as the airline has announced plans to acquire up to 31 Boeing 737 MAXs, through a combination of purchases and leases. This order is comprised of 20 firm orders plus 11 options, and planes are expected to join EL AL’s fleet starting in 2028. It’s not stated which variants of the 737 MAX the airline has ordered, oddly.
Earlier this year, EL AL had been deciding between the Airbus A320neo and Boeing 737 MAX family of aircraft for its fleet renewal. I’m not surprised to see EL AL going with the 737 MAX, given that the airline already operates 737s, and exclusively flies Boeing aircraft.
This represents EL AL’s single biggest aircraft order in history. This deal is valued at up to $2.5 billion at list prices. Airlines typically get huge discounts off those prices, though keep in mind that EL AL’s jets are a bit more costly than those belonging to other airlines, given the safety systems that are installed on them. For example, EL AL is the only airline in the world to install missile defense systems on its aircraft.
Here’s how EL AL CEO Dina Ben-Tal Ganancia describes this order:
“This is a significant milestone for EL AL, which will allow us to offer our customers the most advanced service and technology experience in the industry. The implementation of the long-term procurement plan, which began with the purchase of additional 787 Dreamliners earlier this year and culminates in the current deal, once again demonstrates our commitment to the Israeli public and the state.”
“EL AL has a central role in ensuring open skies for Israel. The implementation of our strategic plan – which aims to expand the fleet, increase the value proposition for customers and increase capacity and seating – will ensure a strong and growing company for many years to come.”
How the 737 MAX fits into EL AL’s fleet
For context, EL AL currently operates an all-Boeing fleet, comprised of Boeing 737s, Boeing 777s, and Boeing 787s.
When it comes to narrow body jets, EL AL has 24 Boeing 737s, with two thirds of those jets being 737-800s (an average of nearly 20 years old), and one third of jets being 737-900ERs (an average of nearly 10 years old). The 737 MAXs are expected to replace some of the existing 737s, and allow additional growth. I have to imagine that the 737-900ERs will stick around for some time, given that they’re still quite young.
I don’t think anyone is surprised to see EL AL selecting the 737 MAX for fleet renewal, as much as the jet has been having issues. This is the obvious choice in terms of fleet commonality compared to the existing jets. I just hope the airline isn’t relying on the 737 MAX 7 (doubtful) or 737 MAX 10, since those planes haven’t yet been certified, and it’s anyone’s guess when they will be.
EL AL has seen among its best financial performance in history in recent months, as it’s the only airline to have consistently served Israel since last October. Meanwhile other airlines have resumed service and then suspended it again, in light of the unstable situation.
The airline also faces some costs that other airlines don’t, from the expensive systems installed on its jets, to grounding its planes for one day per week, to the amount that it spends on security personnel.
Bottom line
EL AL has just finalized an order for up to 31 Boeing 737 MAXs, including 20 firm orders and 11 options. The planes should join EL AL’s fleet starting in 2028, and will allow the airline to replace some existing 737s, and also grow.
I don’t think the 737 MAX order should surprise anyone, given the carrier’s existing all-Boeing fleet, including the heavy focus on the 737.
What do you make of EL AL ordering the Boeing 737 MAX?
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