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Cabinet Acts on El Al

October 25, 1982
See Original Daily Bulletin From This Date

A Cabinet majority agreed today to initiate steps toward the voluntary liquidation of El Al, Israel’s national airline, but left open the possibility of reorganizing the government-owned carrier if its employes accept a 10-point plan drafted by management.

The Cabinet acted on the recommendations of the El Al board of directors after protracted negotiations with Histadrut and the airline workers committees broke down late last week. While Histadrut was prepared to continue the talks on the basis of the management plan, the employes refused, apparently because it calls for dismissal of about one-fifth of El Al’s 5,000 employes.

Liquidation procedures would last several months and cost the government over $300 million. A new airline could be organized under government auspices or El Al could be sold to private investors. The airline suspended service five weeks ago following a wildcat strike by flight attendants.

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