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LY Restructuring, Cost Cutting And Layoffs Ahead  
User currently offlineBWI757 From Israel, joined Dec 2004, 429 posts, RR: 2
Posted (7 years 12 months 2 days 22 hours ago) and read 4193 times:

Fair use excerpt:

El Al announced that it was about to restructure its management which includes personnel changes and position cancellations. The post of VP global sales will be cancelled and its responsibilities will be transferred to the VP commerce and aviation connections

El Al Israel Airlines issued last week a statement indicating it had embarked upon a streamlining policy in order to cope with climbing costs and shrinking business.


Full article here:
http://www.port2port.com/Index.asp?CategoryID=44&ArticleID=1100

BWI757


I live in the US but my heart is in Jerusalem!
38 replies: All unread, showing first 25:
 
User currently offlineSemsem From Israel, joined Jul 2005, 1779 posts, RR: 3
Reply 1, posted (7 years 12 months 2 days 21 hours ago) and read 4142 times:

EL AL should never have been privatised in the first place.

User currently offlineIAD380 From United States of America, joined May 2006, 804 posts, RR: 0
Reply 2, posted (7 years 12 months 2 days 21 hours ago) and read 4136 times:

An article in the Jerusalem Post today confirms that LY plans to cut ten percent of its staff in order to return to profitability. Many of those who will lose their jobs are temporary employees. The article says that LY decided to take drastic action now to avoid the type of financial crises that many American airlines face. El Al attributes its losses to declining tourism after the Lebanon war, a weakening dollar, and higher fuel costs.

The airline's CEO told the Jerusalem Post that "El Al will do what is necessary to improve efficiency and be profitable without affecting its high level of service we bring to our customers." He was also quoted as saying "We will continue to invest in new technologies, develop new routes and destinations and look very carefully at our cost structure so that we can increase revenue by adding value for our customers."

This article also reports that LY plans to add flights to its growth markets in North America and the Far East. According to the article, the winter schedule will include more flights to NYC, ORD, MIA, LAX, YYZ, BKK, PEK, and HKG. In fact, schedules posted on El Al's website indicate that the airline will not suspend service to YYZ. The airline will now offer four weekly flights to YYZ, which will continue to ORD. Nonstop flights to PEK and MIA increase to three times a week. As reported on this site, LY will add a fourth flight to HKG. However, LY may cut CAI, and LCA, which are unprofitable.


User currently offlineLuv2fly From United States of America, joined May 2003, 12118 posts, RR: 49
Reply 3, posted (7 years 12 months 2 days 21 hours ago) and read 4130 times:
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Well they could always start flying on Saturday that gives them 52 more days a year to make money.


You can cut the irony with a knife
User currently offlineCY319 From Cyprus, joined Apr 2006, 396 posts, RR: 12
Reply 4, posted (7 years 12 months 2 days 21 hours ago) and read 4119 times:

Quoting IAD380 (Reply 2):
However, LY may cut CAI, and LCA, which are unprofitable.

ok...it makes sense that CAI is unprofitable. high security costs, low frequencies, low traffic volume and thus their 73Gs cant make the route profitable. it makes more sense that arkia or israir take the route on putting regional jets.

i dont agree with axing LCA though. I cant understand why LCA is unprofitable since Cyprus is a very very popular destination for Israelis (especially youngesters who choose cyprus for crazy days and nights at Ayia Napa) and Israel is a quite popular destination for Cypriot pilgrims. LY gets very good loads in the summer season. At least, they can keep LCA as a seasonal destination. Besides, Cyprus lacks of connections towards the Far East. Not that traffic is big, but still, LY could be a good alternative for the existing GF and EK options , provided that they offer competitive schedules and prices.



wanna be travel buddies ,sex buddies .. or both ?
User currently offlineIAD380 From United States of America, joined May 2006, 804 posts, RR: 0
Reply 5, posted (7 years 12 months 2 days 5 hours ago) and read 3996 times:

Quoting CY319 (Reply 4):
i dont agree with axing LCA though. I cant understand why LCA is unprofitable

I suppose that the emphasis is on long-haul routes that offer a better mix of business passengers and tourists. If LY stops flying to LCA, I think that they will codeshare on CY flights.

Perhaps LY will ax other European destinations as part of its effort to cut costs. I wonder if JNB is a marginally profitable route for LY, and whether LY will eventually stop flying there.


User currently offlineCY319 From Cyprus, joined Apr 2006, 396 posts, RR: 12
Reply 6, posted (7 years 12 months 2 days 1 hour ago) and read 3933 times:

Quoting IAD380 (Reply 5):
I think that they will codeshare on CY flights.

it sounds logical since they already code-share with CY and have a seat exchange agreement.



wanna be travel buddies ,sex buddies .. or both ?
User currently offlineTodaReisinger From Switzerland, joined Mar 2001, 2807 posts, RR: 1
Reply 7, posted (7 years 11 months 3 weeks 6 days 19 hours ago) and read 3813 times:

maybe El Al should one day consider adding some smaller airplnes to the fleet....It's been considered btw, but not yet implemented. It was also considered a few years ago to retire all the old and noisy 747s from the fleet and replace them with 744s cargo....but it was not implemented either.
it seems that the only decisions El Al is actually implementing are the most stupid and unnecessary ones: livery change in 1999, logo "change" in 2006...Well what next? A new name to be even more fashionable?



I bitterly miss the livery that should never have been changed (repetition...)
User currently offlineCY319 From Cyprus, joined Apr 2006, 396 posts, RR: 12
Reply 8, posted (7 years 11 months 3 weeks 6 days 8 hours ago) and read 3734 times:

Quoting TodaReisinger (Reply 7):
El Al is actually implementing are the most stupid and unnecessary ones

I dont agree. Their fleet selection of long-haul A/C is an admirable example to follow for the suffering airlines in the mediterranean and M.Eastern region.
As for the livery, in my opinion, it is one of the best in the industry: simple and elegant.



wanna be travel buddies ,sex buddies .. or both ?
User currently offlineTodaReisinger From Switzerland, joined Mar 2001, 2807 posts, RR: 1
Reply 9, posted (7 years 11 months 3 weeks 5 days 17 hours ago) and read 3636 times:

Quoting CY319 (Reply 8):
As for the livery, in my opinion, it is one of the best in the industry: simple and elegant.

I REALLY miss the old livery...but it's a question of taste.

But how about the "new" logo...? Have you seen it?

And given the very serious financial situation of LY those days, was it really necessary to invest money for an "updated" logo? To pay a so-called graphic designer...and then to repaint the logo on all the planes, and to replace hundreds of signs, including all over the new TLV terminal...? It cost a lot...Proof is that almost 8 years after the introduction of the new livery, not all airplanes have yet been repainted...and that's without even speaking of the ugly ex-NAA 738.

Quoting CY319 (Reply 8):
Their fleet selection of long-haul A/C is an admirable example to follow for the suffering airlines in the mediterranean and M.Eastern region.

In what should it be an example? BTW, if it wasn't for political pressures, LY's fleet would look quite different today......



I bitterly miss the livery that should never have been changed (repetition...)
User currently onlineBrenintw From Taiwan, joined Jul 2006, 1668 posts, RR: 1
Reply 10, posted (7 years 11 months 3 weeks 5 days 16 hours ago) and read 3609 times:

Quoting IAD380 (Reply 5):
I wonder if JNB is a marginally profitable route for LY, and whether LY will eventually stop flying there.

I think JNB is hugely profitable for LY -- there's a huge Jewish community in South Africa with very strong ties to Israel, and LY is the only carrier that offers JNB - TLV flights ATM. Additionally, a lot of younger people go to Israel to work on Kibbutzim from JNB, and they also fly LY.



I'm tired of the A vs. B sniping. Neither make planes that shed wings randomly!
User currently offlineCY319 From Cyprus, joined Apr 2006, 396 posts, RR: 12
Reply 11, posted (7 years 11 months 3 weeks 5 days 3 hours ago) and read 3542 times:

Quoting TodaReisinger (Reply 9):
But how about the "new" logo...? Have you seen it?

ok, i admit i dont like the new logo. but i find their livery just great!!



wanna be travel buddies ,sex buddies .. or both ?
User currently offline4xRuv From Israel, joined Dec 2003, 388 posts, RR: 2
Reply 12, posted (7 years 11 months 3 weeks 4 days 22 hours ago) and read 3508 times:

BTW, I read an article few weeks ago saying LY is getting rid of all it's 757s and planing to replace them with other leased narrowbodies.

User currently offlineCY319 From Cyprus, joined Apr 2006, 396 posts, RR: 12
Reply 13, posted (7 years 11 months 3 weeks 4 days 22 hours ago) and read 3498 times:

Quoting 4xRuv (Reply 12):
LY is getting rid of all it's 757s and planing to replace them with other leased narrowbodies.

hm..interesting. any guess with which machine are going to be replaced?
I think with 738s or shall i take it a bit further and say 739s???
I Wouldnt bet any money for 321s as we all know the love story between Boeing and LY.



wanna be travel buddies ,sex buddies .. or both ?
User currently offlineKesflyer From Australia, joined Aug 2005, 103 posts, RR: 0
Reply 14, posted (7 years 11 months 3 weeks 4 days 22 hours ago) and read 3495 times:

LCA to go.. How ridculous.

During the summer, they regularly send 747s from TLV to LCA. Does not make sense to me that they can send 747s on such a short sector, yet not profitable.


User currently offline4xRuv From Israel, joined Dec 2003, 388 posts, RR: 2
Reply 15, posted (7 years 11 months 3 weeks 4 days 4 hours ago) and read 3428 times:

It's only a tour of about 3 hours tops. If LY can get cheaper fuel up in LCA it sometimes makes sense to send the 744 to LCA to carry fuel for it's next flight...

User currently offlineAF022 From France, joined Dec 2003, 2162 posts, RR: 1
Reply 16, posted (7 years 11 months 3 weeks 3 days 23 hours ago) and read 3371 times:

Quoting Brenintw (Reply 10):
I think JNB is hugely profitable for LY -- there's a huge Jewish community in South Africa with very strong ties to Israel, and LY is the only carrier that offers JNB - TLV flights ATM. Additionally, a lot of younger people go to Israel to work on Kibbutzim from JNB, and they also fly LY.

The only competition on this route is 4 weekly connections on Ethiopian, while LY's 3 nonstops probably take most of the traffic.


User currently offlineLY777 From France, joined Nov 2005, 2702 posts, RR: 2
Reply 17, posted (7 years 11 months 2 weeks 6 days 21 hours ago) and read 3274 times:

Quoting TodaReisinger (Reply 9):
I REALLY miss the old livery

I don't like the old livery.
The new one looks great!!!



אמא, אני מתגעגע לך
User currently offlineTodaReisinger From Switzerland, joined Mar 2001, 2807 posts, RR: 1
Reply 18, posted (7 years 11 months 2 weeks 4 days 18 hours ago) and read 3162 times:

Quoting LY777 (Reply 17):
I don't like the old livery.
The new one looks great!!!

It's a question of taste...but a majority of the "public" still considers the old classical scheme and colors as more beautiful and more elegant. El Al planes looked classy and impressive...nowadays they have the look of a cheap charter or "low-cost" airline.

But the worst...the worst has yet to come on the planes: the so-called "new logo", a pure HORROR!! And here, it is not only a question of taste... The old logo was the result of a profound typographical research....And it was itself btw based on characters created in the early 1960s by a master of graphic design in Holland. The new one is STUPID, its only achievement is to destroy the graphical harmony of the current one. Each and every letter in the "new" logo is ugly, both the Latin and Hebrew characters. The "E", the "A", the "L"...all are ugly now.

But well...while the airline is sinking more and more into big troubles, the management finds nothing better than spend hundreds of thousands of dollars, if not millions, to "modernize" its image in the most boring and ugly way...Really, for a company possessing such a strong an loved logo, it is a frighteningly stupid and unnecessary decision. BTW, the management could have learned from the 1999 livery change that this kind of cosmetic arrangements WILL NOT transform LY's image and perception...



I bitterly miss the livery that should never have been changed (repetition...)
User currently offlineSemsem From Israel, joined Jul 2005, 1779 posts, RR: 3
Reply 19, posted (7 years 11 months 2 weeks 4 days 11 hours ago) and read 3122 times:

Did anyone notice that Pakistan PIA copied the LY stripe on the fuselage.

User currently offlineLY777 From France, joined Nov 2005, 2702 posts, RR: 2
Reply 20, posted (7 years 11 months 2 weeks 4 days 7 hours ago) and read 3077 times:

Quoting Semsem (Reply 19):
Did anyone notice that Pakistan PIA copied the LY stripe on the fuselage.

Air Arabia also copied the LY stripe...If 2 airlines copy LY,I don't think that people have such a bad opinion about LY colour scheme...


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Photo © OlivierG



who will be the next to copy El Al?



אמא, אני מתגעגע לך
User currently offlinePEK18R36L From China, joined Dec 2005, 107 posts, RR: 0
Reply 21, posted (7 years 11 months 2 weeks 4 days 6 hours ago) and read 3053 times:

Quoting IAD380 (Reply 2):
Nonstop flights to PEK and MIA increase to three times a week.

Man that is good news. The choice between Thursday and Sunday flights from PEK-TLV means you're either in Israel for a short weekend or a full week.



In China, everything is possible - but nothing is easy.
User currently offlineMRURUN From United Kingdom, joined Aug 2006, 155 posts, RR: 0
Reply 22, posted (7 years 11 months 2 weeks 4 days ago) and read 2982 times:

Quoting Luv2fly (Reply 3):

Ehh, you're kidding right? They DO fly on Saturdays, don't they?


User currently offlineLY777 From France, joined Nov 2005, 2702 posts, RR: 2
Reply 23, posted (7 years 11 months 2 weeks 3 days 23 hours ago) and read 2955 times:

no, they do not fly on saturdays,nor during the jewish holidays


אמא, אני מתגעגע לך
User currently offlineMRURUN From United Kingdom, joined Aug 2006, 155 posts, RR: 0
Reply 24, posted (7 years 11 months 2 weeks 3 days 19 hours ago) and read 2908 times:

Quoting LY777 (Reply 23):

Wow, what a commercially inept decision/obligation. I can understand for the Holidays, but each and every saturday....


25 Post contains links and images TodaReisinger : there aren't yet EL Al flights on Saturdays although the airline is now legally free to operate flights on these days, which was not the case before p
26 Post contains links and images LY777 : TodaReisinger, if you worry about the new logo, I have a good news for you:the a/c will keep the old one:even the last a/c delivered at the beginning
27 IAD380 : If demand for flights between Israel and China is really increasing, maybe a Chinese airline will enter the market. It could either compete with LY o
28 Post contains images Workhorse : With all due respect, I fail to see any significant difference between those two: Is it me not seeing something important or they are really as I see
29 LY777 : well...Let's say much more blue on the old livery
30 Workhorse : yeah, sure, but the logo's typography?
31 Post contains links LY777 : ah ok.The a/c still don't have the new logo.If you want to see the new logo, go to El Al website www.elal.co.il Don't forget to tell us what you think
32 Post contains images Workhorse : Ah, yeah, ok, it's err... different. Seems like quite a needless change, indeed.
33 LY777 : yes, but it is not horrible, I think
34 Raffik : According to Airliner World, the airlines' fortunes took a turn for the worse as a result of the military action in Lebanon and greatly decreased traf
35 Post contains links and images TodaReisinger : Indeed, for the time being...but it's only a matter of time...time and money, because this stupid move has a cost....any logo change implies high cos
36 PEK18R36L : There would probably need to be demand from Chinese pax before a Chinese airline would consider routing one or more of their valuable long range wide
37 CXA330300 : Any chance LY might start Saturday flights or restart service to CPH if privatised?
38 IAD380 : This should not be a problem. Most European carriers serve both TLV and destinations in Islamic countries. However, many Islamic countries probably w
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