El Al: flexibility and price cuts

Faced with stiff competition from low-cost carriers, Israeli carrier El Al has gone on the offensive, offering greater fare flexibility and a simplified pricing structure.  

To adapt to growing competition, El Al is reviewing its pricing strategy. The Israeli national airline is now offering only two price ranges, for low and high season. "The latter fare will only apply for two or three weeks a year, during the summer and Passover", explained El Al CEO Eliezer Shkedy in Paris. Several price classes are offered for each season. "We are now selling them as single tickets, which means they can be combined", says Eliezer Shkedy.
The airline continues to establish itself as a specialist in Israel. Firstly through the number of its flights - up to three a day - but also through the quality of its services. "We only serve kosher meals and we probably have the highest level of security in the airline industry. Our passengers must feel at ease when travelling with us", says Eliezer Shkedy.
The carrier is now working to integrate a strategic alliance in the longer term. "That's our aim, but we are of course handicapped by the political situation vis-à-vis Israel. We cannot be part of these alliances, which already include airlines from Muslim countries; nor can we fly over certain airspaces", he adds. A major handicap if Tel Aviv is to become an efficient hub between East and West.