Boeing and Airbus to Split El Al Israel Order

El Al Israel Airlines Ltd. decided to split an aircraft order between Boeing Co. and Airbus Industrie, allowing the European plane maker to crack the fleet of a prominent all-Boeing customer. El Al gave Boeing an order valued at about $400 million to supply three of its long-range 777s. But the carrier also plans to order three or four Airbus A-330-200 jets to replace some of its Boeing 767s, El Al spokesman Nachman Kleinman said. Israel Radio said the Airbus 330s will cost $250 million. It was not clear if the estimate was for three or four Airbus planes. The decision to split the order was unexpected and followed weeks of intense lobbying in which both sides offered to spend money with companies in Israel to help secure the order. U.S. politicians also reminded El Al that Israel receives $3 billion in aid a year from the U.S. government. Airbus pledged this week to spend 50% of the amount of its order on Israeli products, up from 35%. The French plane maker also offered earlier to equip the lower decks of its A-340 long-haul planes with a synagogue, though El Al said that wasn’t among its requirements. The decision to buy the Airbus planes still requires final approval from company management, expected in two weeks, Kleinman said. The decision to buy the Boeing planes has been approved. Analysts had considered Seattle-based Boeing the favorite because the U.S. supplies Israel with economic aid and political support. Boeing shares closed unchanged at $44.88 on the New York Stock Exchange.

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