WASHINGTON (Aug. 29)
Two Boeing 707 jet airliners will be provided to El Al Israel Airlines under terms of a new loan arrangement involving approximately $13,000,000 approved today by the board of directors of the U.S. Export-Import Bank.
The planes, powered by British Rolls Royce jet engines, will be delivered in the spring of 1961. El Al will be enabled to remain on a competitive basis with other airlines securing similarly modern equipment. Tel Aviv-New York flying time will be reduced by hours.
The Export-Import Bank will cover 68 percent of the cost of the planes and spare parts. 20 percent will be covered by the buyer, and 12 percent by the manufacturer. Export-Import Bank’s loan will be at 5. 75 percent interest and for a period of seven years. The board’s action must obtain final approval, usually a formality, from the bank’s national advisory council. No difficulty is anticipated.