TEL AVIV (Aug. 30)
E1 A1, Israel’s government-owned airline, plans to go public to raise cash for modernization.
Finance Minister Shimon Peres announced that 25 percent of the company will be sold in shares to its employees in Israel and worldwide, as a first stage.
“Stage 2 would involve the sale of an additional 25 percent of the company on foreign stock exchanges, but this will begin at a later date,” Peres said.
Revenues from the sale of shares will be used to finance the replacement of aging aircraft and to enlarge the carrier’s fleet.
E1 A1, which offers non-stop flights between Tel Aviv and New York, is in receivership, but has shown a profit in each of the past three years.