Author Topic: Elal buying/merging Israir  (Read 2012 times)

Online damaxer91

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Re: Elal buying/merging Israir
« Reply #15 on: July 02, 2017, 02:41:44 PM »
Are there no Anti-Trust laws in Israel?

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Re: Elal buying/merging Israir
« Reply #16 on: July 02, 2017, 02:54:06 PM »
Are there no Anti-Trust laws in Israel?
Just the opposite. They have pro monopoly laws.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

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Re: Elal buying/merging Israir
« Reply #17 on: July 02, 2017, 02:55:41 PM »
What is the official explanation today as why sandor can operate on shabbos vs elal?
Apparently Sundor lost its operating license in 2011.

Israir is owned by IDB Tourism (a subsidiary of IDB).

IDB Tourism is selling Israir to Sandor in exchange for a 25% ownership stake in Sandor +$24MM.

ELAL also got a call option on IDB's 25% share of Sandor.

http://www.ynet.co.il/articles/0,7340,L-4983645,00.html
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Re: Elal buying/merging Israir
« Reply #18 on: July 03, 2017, 06:07:38 PM »
ElAl not scheduling flights on shabbos is a symbolic gesture and a very nice one. I wish they would be fully shomer shabbos but they are not. Those are the facts.
What is the official explanation today as why sandor can operate on shabbos vs elal?
i read somewhere recently that an executive visited with the lubavitcher rebbe and the rebbe was very direct about not operating on shabbos. i think at the end of the story, the man said he pushed very hard for elal's position to be not to fly on shabbos but like mentioned here, most of us know that although they might not be scheduled to depart or arrive on shabbos, having time slots leaving ten min after or possibly arriving on shabbos due to delays is the reality. 

Offline moish

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Re: Elal buying/merging Israir
« Reply #19 on: July 05, 2017, 02:13:56 PM »
i read somewhere recently that an executive visited with the lubavitcher rebbe and the rebbe was very direct about not operating on shabbos. i think at the end of the story, the man said he pushed very hard for elal's position to be not to fly on shabbos but like mentioned here, most of us know that although they might not be scheduled to depart or arrive on shabbos, having time slots leaving ten min after or possibly arriving on shabbos due to delays is the reality. 
Its a symbolism issue, that the flag carrier of Israel doesnt fly on Shabbos, not that elal ks a frum company that stays away from chillul shabbos

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Offline tavster

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Re: Elal buying/merging Israir
« Reply #21 on: January 11, 2018, 01:53:04 AM »
Mergers shot down!

http://hamodia.com/2018/01/10/state-nixes-proposed-merger-israir-el-als-sundor/
Sadly the Israeli antitrust has been banning most merger attempt across industries. In Telecoms, where we have 5 carriers, they blocked a merger. And the same thing will likely happen with Bank Mizrahi and Union Bank

Offline thaber

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Re: Elal buying/merging Israir
« Reply #22 on: January 11, 2018, 01:58:03 AM »

Offline tavster

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Re: Elal buying/merging Israir
« Reply #23 on: January 11, 2018, 02:04:46 AM »
why?
I look at it from an investor's standpoint since I'm an analyst, rather than from a consumer standpoint.

For an investor it's typically bad news because of missed revenues and cost synergies.

Offline thaber

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Re: Elal buying/merging Israir
« Reply #24 on: January 11, 2018, 02:06:24 AM »
I look at it from an investor's standpoint since I'm an analyst, rather than from a consumer standpoint.

For an investor it's typically bad news because of missed revenues and cost synergies.
Fair enough

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Re: Elal buying/merging Israir
« Reply #25 on: January 11, 2018, 02:24:11 AM »

Sadly the Israeli antitrust has been banning most merger attempt across industries. In Telecoms, where we have 5 carriers, they blocked a merger. And the same thing will likely happen with Bank Mizrahi and Union Bank
The question is whether they are actually promoting competition, or breaking up monopolies/duopolies?

In this case the cited a cementing of the duopoly that flies into Eilat as a reason. That sounds odd to me, as AFAIK ELAL doesnít fly to Eilat (does Sun DíOr?) so itís being shot down due to perceived potential competition? Also this is being done at a time when open skies is aggressively being promoted, so it really sounds odd.

OTOH, would the decision be different if ELAL would spin off Sun DíOr? How does Sun DíOr contribute to ELALís bottom line?

As a side note, IINM both Sun DíOr and Israir schedule flights on Shabbos.
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Offline tavster

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Re: Elal buying/merging Israir
« Reply #26 on: January 11, 2018, 02:45:00 AM »
The question is whether they are actually promoting competition, or breaking up monopolies/duopolies?

In this case the cited a cementing of the duopoly that flies into Eilat as a reason. That sounds odd to me, as AFAIK ELAL doesnít fly to Eilat (does Sun DíOr?) so itís being shot down due to perceived potential competition? Also this is being done at a time when open skies is aggressively being promoted, so it really sounds odd.

OTOH, would the decision be different if ELAL would spin off Sun DíOr? How does Sun DíOr contribute to ELALís bottom line?

As a side note, IINM both Sun DíOr and Israir schedule flights on Shabbos.
The regulator's main objective is to make sure that the consumer isn't harmed, i.e. that prices won't go up. I wouldn't call it promoting competition but rather imposing it.

As you said the Eilat route is a duopoly with only Israir and Sun d'Or (which belongs to LY) operating it so I understand the concerns that prices will go up (especially since LY already commented that this route isn't profitable).

As a result it wouldn't be different if LY was to spin off Sun d'Or as you would still end up with a monopolistic position on this route

The issue is that they had bigger plans for the merged companies, including new low-cost routes to European destination so it's a shame that this would go to waste because of the Eilat route.

« Last Edit: January 11, 2018, 02:49:34 AM by tavster »

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Re: Elal buying/merging Israir
« Reply #27 on: January 11, 2018, 02:50:02 AM »

The regulator's main objective is to make sure that the consumer isn't harmed, i.e. that prices won't go up. I wouldn't call it promoting competition but rather imposing it.

As you said the Eilat route is a duopoly with only Israir and Sun d'Or (which belongs to LY) operating it so I understand the concerns that prices will go up (especially since LY already commented that this route isn't profitable).

As a result it wouldn't be different is LY was to spin off Sun d'Or as you would still end up with a monopolistic position on this route

The issue is that they had bigger plans for the merged companies, including new low-cost routes to European destination so it's a shame that this would go to waste because of the Eilat route.
I think you might have some facts wrong.

The duopoly is Israir and Arkia.

I donít know if Sun DíOr flies between foreign destinations and Eilat, but I donít think they operate domestically. IINM Sun DíOr doesnít sell flights directly, but only as part of a tour package or on a charter basis.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline tavster

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Re: Elal buying/merging Israir
« Reply #28 on: January 11, 2018, 02:55:48 AM »
I think you might have some facts wrong.

The duopoly is Israir and Arkia.
You're right, I mixed things up, sorry.
So I'd assume that the concern is that LY would cancel the Israir flights to Eilat and leave Arkia on its own on that route?

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Re: Elal buying/merging Israir
« Reply #29 on: January 11, 2018, 02:57:36 AM »

You're right, I mixed things up, sorry.
So I'd assume that the concern is that LY would cancel the Israir flights to Eilat and leave Arkia on its own on that route?
Youíre asking me?

Based on what I read Israir was actually going to increase service.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan