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El Al Israel Airlines Has Signed an Agreement to Sell Two CFM Engines, 56-7B

Dépèche transmise le 21 février 2012 par Business Wire

El Al Israel Airlines Has Signed an Agreement to Sell Two CFM Engines, 56-7B

LOD, Israel--(BUSINESS WIRE)--El Al Israel Airlines (TASE: ELAL) has signed an agreement to sell and lease back two CFM engines, 56-7B, for an amount around $13-14 million.

“The transaction will be part of the funds to renew the company's aircraft fleet and implementation of its fleet planning.”

EL AL leased back those engines for a period of 7 years at a lease rate of 0.75%-1.2% per month with an option to extend the contract by 5 years.

As a result of the sale, EL Al is expected to recognize $9 million of capital earnings at the first quarter of 2012.

Mr. Nissim Malki, CFO of El AL, noted: "The transaction will be part of the funds to renew the company's aircraft fleet and implementation of its fleet planning."

About El Al

El Al Israel Airlines is Israel's national carrier. El Al serves about 34 world destinations directly and many other destinations around the globe, through cooperation agreements with other airlines. El Al is also Israel's leading cargo carrier.