El Al is broke.
Their operations have been suspended since March 27th and all flights have been wiped off the schedule until October. They’re being sued for $400MM in refunds that they refuse to give customers who paid for flights that never operated. There’s no end in sight for when refunds will be offered and Israeli airline compensation law seems to change daily based on the whims of its airlines.
While the airline claims to the be the lifeline that Israel needs, that baton seems to have been passed onto United, which never stopped their Israel flights and is indeed ramping up to offer more service to Israel from more US cities than ever before. But at least El Al helps keep the cocaine flowing into the country.
The airline is currently controlled by the Borovitz family, which seeks a government bailout without losing control.
The Borovitz family didn’t expect anyone to want to buy the airline and that they’d be able to maintain control of the airline, but along came the Rozenberg’s with an offer to buy a controlling stake.
The offer was made by Eli Rozenberg, the mid-20s Israeli son of Kenny Rozenberg, US owner of Centers Heath Care nursing homes. Israel’s golden share of El Al requires that the owner of El Al be Israeli, so the $75MM offer for 45% of the airline had to come from Eli and he would be the airline’s owner.
Then things got ugly.
Initially, El Al refused to meet with Eli as they wanted to know if Eli or Kenny was the real buyer, but Eli and his laywers demanded a meeting.
El Al then refused to meet as Eli lacked a permit to buy an airline, but then they agreed to meet after Israel granted him a permit.
El Al then sent a letter asking that Eli attend the meeting and answer questions, such as a response to why one of his father’s companies settled a case with the state of NY for $1.65MM. That’s rich coming from a company that has illegally held onto hundreds of millions in customer funds and refused refunds for cancelled flights. In turn, Eli’s lawyers threatened to sue El Al for defamation and accused El Al of trying to sabotage the sale in order to get the government bailout and retain control.
Finally, a meeting date between the parties was set for August 18th.
It boggles my mind that this is the way a prospective buyer is treated. Is that the equivalent of El Al learning from their unions about throwing chairs around in a negotiation?
It’s not surprising that El Al’s long history of bad behavior stems from the top.
I wish the Rozenbergs luck in dealing with El Al and turning around that ship. Hopefully they don’t pay $75MM, only to be told that the airline’s operations will remain suspended and that they can only get a refund after they wait around for a few years. And I don’t think a DOT complaint or a credit card dispute will help with that. 😉
Dan, I’m surprised you didn’t mention anything about the new offer on the table, by Meir Gurvitz to buy a controlling stake.
Link?
https://www.news1.news/en/2020/08/the-competition-is-heating-up-meir-gurevitch-has-submitted-a-request-to-acquire-40-25-of-el-al-themarker.html
Just posted it.
https://mobile.kikar.co.il/article/371567
https://bit.ly/3iDhdMe
& correction, seems like he’s not insisting on a controlling stake.
Maybe instead of chairs we will see planes flying.
Airplanes without chairs are called cargo flights
They gotta start doing things the American way
Why is this going to be more dirty than everything else that happened in the past? This is El Al. Nothings new
https://www.themarker.com/markets/1.9068316
https://www.calcalist.co.il/local/articles/0,7340,L-3844772,00.html
If history is any indication, he’s better off buying the airline with Qantas miles
Where is the information that all their flights are out until October? Not questioning you! (Never did I catch you off target ) just wondering how to respond to El Al.
After inquiring about a September 17th flight tlv-nyc and requesting to be rebooked on another airline. This was the response.
Hello
Flights are on September/October.
For now, ELAL did not cancel the flights for these months.
Only if EL AL finally cancel the flights without proposing an alternative on new EL AL schedule flights we will be able to request an alternative on UA.
Best regards
Go try to buy any El Al flight for September…
They don’t officially cancel until the last minute, in order to avoid having to rebook and give refunds.
So I’m doomed? Nothing I can do?
גנבים
Every time you post about El Al you say Eli Rozenberg is his mid-20’s, I’m not sure why that’s relevant, but in fact he is 30.
In fact, he is not.
https://www.jta.org/quick-reads/son-of-millionaire-us-businessman-makes-75-million-bid-for-major-stake-in-el-al-airlines
It’s fake news.
https://www.timesofisrael.com/el-al-seeks-clarifications-on-bid-by-son-of-us-businessman-to-buy-stake-in-firm/
Fake news copying fake news.
Still better than buying the Mets!
Why?
Sports franchises go up in price!
Dan is just upset that ELAL double crossed him on publishing his interview.
Lol, I just call it as I see it. Every airline gets the same treatment.
Question:if I dispute now the charge with my credit card, will my travel agent be panelized by the el al sending him a debit memo?
Airlines have not been sending debit memos for cancelled flights.
Is it possible to turn it around and become profitable?
(And without any chilil shabos)
Anything is possible. But it will take a monumental effort.
Just confirming what I’ve been saying for years. ELAL’s problem is a flawed corporate DNA, that starts from the top.
Thought it said “”So You Want To Fly El Al? Be Prepared For A Dirty Flight”
This is to remind all of you that El-Al has been too loyal to the Orthodox Jews and willing to loose by not flying on Shabbat and during Jewish Holidays. Keeping airplane and crew members around the world for few days is quiet costly. So please stop bad mouth El Al all the time. Maybe if they will function like other airlines and United they will be profitable!!!
They are a horrible airline. No one owes El Al anything, especially not loyalty…meanwhile El Al owes millions in refunds to passengers and they are using it as an interest free loan.
Hopefully under new ownership they can clean up their act and offer customer service.
IN the old days the service on the planes was horrible but they knew they were Jewish and they were loyal to the state. It was run by the government and it was the national airline. They even played Shalom Aleichem as they landed. Then they went private and became more American than the Americans.
They do that because it’s good for business.
El Al has not been loyal to Orthodox Jews at all. For starters, they do fly on Shabbos and Yom Tov. Spend a Shabbos in Lud and watch the planes taking off and landing on Shabbos. They give you a hard time when you want to daven with a minyan during a flight. Dan has reported numerous times they have lied to people forcing them to violate Shabbos. Etc, etc, etc. as the king of Siam would say.
By the way Air-Canada also does not refund tickets!!!!!!
But officer, the car next to me was speeding too!
I called out Air Canada just like I called out El Al. Like I said, I say it like it is:
https://www.dansdeals.com/points-travel/air-canada-offering-miles-non-expiring-vouchers-cancelations-insists-compliance-dot-not-refunding-flights/
https://www.dansdeals.com/points-travel/airlines/airline-news/aviation-showdown-will-dot-enforce-rules-air-canada/
https://www.dansdeals.com/points-travel/airlines/airline-news/canada-transportation-agency-responds-dansdeals-article-air-canadas-refusal-covid-19-flight-refunds-please-dont-call-us-canada-eh/
Why such anti semitism Dan??? These el al posts are beyond the pale… we have enoigh enemies – support Israel and all things Israel!!!
If it’s now antisemitic to call out El Al for:
1. Illegally refusing hundreds of millions of dollars in refunds on flights they willingly cancelled.
2. Trying to stop the saving and sale of the airline by mud-slinging dirt about what Eli’s father may or may not have done to warrant a settlement.
Then I’m proud to be antisemitic by your warped standards.
I’ll be the first to support El Al when they treat people right.
As far as #1 is concerned al pi din they have a leg to stand on because of makas medina, that being the case it me be hurtful but its hard to call it wrong.
Huh?
US and Europe require refunds on cancelled flights. Israel does too, but they keep delaying.
a requirement for timely refunds in normal times does not necessarily apply in force majure circumstances
The US and EU have both said that it does
El-Al is one big walking, er, flying, talking Chillul Hashem, even when they pretend not to work on Shabbos.
Yossi, “support Israel and all things Israel”. Okay… so with that logic, there are various (Israeli owned and operated) restaurants in Israel that serve pork, lobster, and oysters on a random Wednesday, a Shabbos, and Yom kippur. Will you support that, because it’s ‘Israel’?
Can people mention which cc’s refunded their Cxled tickets when they disputed them? AMEX? chase? Citi? TIA
chase ink or me
I booked tickets to Israel with chase sapphire points (was supposed to fly in june) I followed all of chase’s instructions and yesterday they refunded my points
Elal doesn’t deserve to be redeemed
Should be closed down
Let Rosenberg open a new airline and he can get all Elals old customers by honoring elals tickets
Would be a win win for him and doesn’t need all the baggage Elal comes with
How much capital would a buyer of Elal be expected to pump in?
Chaval theyre procrastinating. Rosenbergs losing all the yeshiva/Sem flights $$$. He should lower his bid just for that. 60MM.
El al are a bunch of dirty thieves.Always been like that.they treat you like trash.
let them go down #HellAl