Israel's El Al Airlines cuts 200 jobs in efficiency drive
Tuesday, 12 February 2013
JERUSALEM: El Al Israel Airlines said on Tuesday it was laying off 200 workers as part of an efficiency plan aimed at improving its bottom line amid a difficult time for the global aviation industry.
The reductions of temporary and contract workers comes after Israel's flag carrier had cut its workforce by 126 people to 6,136 in the 12 months ended September 2012.
El Al did not specify how much it would save from the measure but said it would also make further organisational steps to lower its overhead.
"Due to the financial situation of the company, rising competition in the aviation sector, in Israel and in the world, and the difficulty in applying the current cost structure of the company, it was decided to take efficiency steps," El Al said.
El Al said it was continuing to negotiate with workers and its union to renew a labour contract and take the needed steps to streamline the company.
The airline posted a 79 percent rise in third-quarter profit to $37.4 million after recording losses in the first two quarters of 2012. (Reuters)