El Al Israel Airlines has signed an MoU to buy and lease 15 new 787-8 and 787- 9 Dreamliner aircraft from Boeing in a deal worth $800-$900 million. Its El Al biggest ever plane order.
El Al said in a statement to the Tel Aviv Stock Exchange, “The final composition of the deal between purchases from Boeing and leasing from airliner leasing companies will be settled when the purchase and leasing agreements for the planes are signed.”
Israel’s flag carrier has an all-Boeing fleet. The company said it was examining various options to finance the purchase. A final agreement must be signed by Oct. 30 or another agreed-upon date, it said.
The planes will replace a fleet of ageing 747-400 and 767 aircraft and will operate on medium- and long-haul routes, including lucrative North American and Asian destinations.
The memorandum of understanding also grants El Al an option to purchase 13 Boeing 787-10 planes and rights for conversion to other Boeing 787 models.
El Al said the mix between buying and leasing the aircraft will be determined when the deal is finalised.