El Al firing 650 employees
Climbing fuel costs, falling tourism leave little choice, says mgmt
El Al (TASE: ELAL) is streamlining to cope in an era of climbing costs and shrinking business, in part by firing 650 employees.
At least that's part of the demands the management listed in its negotiations with labor representatives.
Out of the 650 marked for dismissal, 400 are temps.
However, the labor representatives object to the cutbacks and demand the management first slash other costs.
Moving onto the pilots, the management demands they spend less time abroad, and stay at lower-class hotels.
For the second quarter of 2006, the airline, which is owned by the Borovich family, admitted to losing $15.1 million. In the parallel quarter of 2005 it had netted $29.8 million.