State-owned El Al Israel Airlines said today it would implement a sweeping cost-saving plan as it responds to a sharp downturn in tourism caused by a continuing Palestinian uprising.
El Al lost an estimated $109 million last year in the wake of the seven-month uprising.
The measures, approved by El Al's board of directors, include halting flights to 10 destinations, reducing its workforce, selling eight old planes and purchasing an additional long-range 777 from Boeing.
In addition, El Al will lease two Boeing 747-400s, a spokeswoman for the national carrier said.
El Al would not disclose which destinations it would cut, but said they would be unprofitable routes in Europe, Asia and Africa. The programme will be finalised within three weeks, the spokeswoman said.
The spokeswoman said the reduction in activities would result in further job cuts but she could not say how many. The airline has already approved an early retirement plan for 300 workers.