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.
