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Wed, Nov 15, 2006

El Al Drops Plan To Buy Boeings

May Switch To Airbus Instead

Israeli carrier El Al announced this week it will not go ahead with its plans to buy 10 Boeing 787 airliners, starting in 2012... and furthermore, may instead opt for Airbus planes.

In a statemtn to the Tel Aviv Stock Exchange, El Al said the carrier had a preliminary agreement to purchase 10 Dreamliners in 2012 and 2013, and had placed a refundable deposit down on the planes.

Since then, however, the carrier's fortunes have taken a downward turn... and frankly, it needs the $1.5 million back. El Al also said it and Boeing "couldn't reach agreements touching on different issues."

El Al says it is still considering future purchases from either Boeing, or Airbus. Which presents an interesting scenario... given the current state of affairs over at Airbus, that manufacturer may be more willing to deal than Boeing right now.

Stay tuned.

FMI: www.elal.com, www.boeing.com, www.airbus.com

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