El Al Israel Airlines cancels order for four Boeing 777-200s

The carrier booked the order for four Boeing 777-200 aircraft in 2008, before the global recession
 
Israel's El Al Israel Airlines said last Thursday it was cancelling its order with Boeing for four 777-200 aircraft due to the downturn in air traffic. The carrier booked the order for four Boeing 777-200 aircraft in 2008, before the global recession.
 
El Al chief executive Eliezer Shkedi said in a press release that "Since the agreement with Boeing was signed in 2008 and the global crisis occurred in world markets there have been substantial changes in the aviation sector”.
 
It is understood that Boeing Commercial Airplanes accepted El Al's bid for cancellation of a 2008 deal and that the advance payment made by El Al for the 777s would be credited toward a future purchase.
 
El Al owns 28 aircraft and leases 10, all made by Boeing.
 
In the fourth quarter of 2009, the El Al posted a net loss of USD$29 million, compared with a loss of USD$10.1 million a year earlier as revenue fell 11% to USD$413.7 million.