El Al and Boeing close to agreement on Dreamliner

El Al Boeing 767

El Al has announced its order intention for the purchase and lease of up to 15 Boeing 787 Dreamliners. It remains unclear how many Dreamliners will be purchased and how many will be leased. Most likely the airline will order the Boeing 787-8 and the Boeing 787-9. The airline holds purchase rights for another 13 airframes. Currently the flag carrier operates 6 Boeing 767-300ER and operated the Boeing 767-200(ER) in the past.

Boeing will be particularly pleased when the deal will be finalized as El Al also was negotiating with Airbus, sparking a battle between the 2 manufacturers to offer attractive financing.

With the deal El Al maintains an all-Boeing fleet, while Boeing probably will also be selected to supply the replacement of the aircraft for the aging Boeing 747-400.

Year-to-Date Boeing has delivered 64 Boeing 787 airframes and received 50 gross orders. Incorporating the 26 orders that were canceled, Boeing has a book-to-bill ratio of .375 for the Boeing 787. Including the 15 airframes that El Al will buy the ratio increases to .6, aiding Boeing in reaching a book-to-bill ratio of 1. For the full year the, assuming 125 deliveries, the ratio will be .31 while some order inflow can be expected towards year-end.

 

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