EL AL has applied to the Israeli Ministry of
Transportation for authorization to begin a codesharing agreement with
American Airlines.

American Airlines has simultaneously applied to the United States
Department of Transportation (DOT). Upon approval of the codesharing
agreement between the two airlines, EL AL and American Airlines passengers
in North America will have many more options to fly to/from Israel, with
added convenience and flexibility.

  “The codesharing agreement between EL AL and American Airlines is the
broadest, most comprehensive agreement between EL AL and any airline,”
stated EL AL Chairman, Professor Israel (Izzy) Borovich. “The agreement
reflects EL AL’s strategy and ambition to significantly increase passenger
traffic from North America to Israel and to become more global by expanding
flight operations worldwide. All of this is to be achieved while
accommodating the needs of our business passengers and enhancing tourism to
Israel.”

  “We are proud to join forces with American Airlines, a company whose
history, size and range of services speak for themselves,” said EL AL
Israel Airlines President, Haim Romano. “The authorization of this EL AL
codesharing agreement with American Airlines will open up new horizons,
create a wide range of possibilities, and enable EL AL passengers to fly
with convenience and maximum flexibility between Israel and North America.”

  Henry Joyner, American Airlines’ Senior Vice President, Planning
stated, “EL AL is a high quality, world-class airline that will provide our
passengers and shippers with additional choices and convenient service to
Tel Aviv. We also look forward to serving EL AL passengers on our American
flights in many of our North American markets. We’re especially pleased to
be codesharing with EL AL into and out of our new $1.3 billion
state-of-the-art JFK terminal.”

  From North America, EL AL passengers can fly nonstop to Israel from
five airports which are New York (JFK/Newark), Los Angeles, Miami and
Toronto. With the new codesharing agreement, EL AL and American Airlines
passengers will have the option to depart from 23 additional destinations
throughout North America, making it much easier to connect to their nonstop
EL AL flight to/from Israel. These additional codesharing cities include
Atlanta, Boston, Charlotte, Chicago, Cleveland, Dallas/Ft Worth, Denver,
Honolulu, Las Vegas, Memphis, Montreal, Orlando, Pittsburg, Portland
(Oregon), Raleigh/Durham, San Diego, San Francisco, San Jose (Ca), Seattle,
St. Louis, Tampa, Vancouver and Washington, DC.

  The impending codesharing partnership between the two airlines will
also enable EL AL passengers to fly to or from Israel nonstop, one way, and
choose a stopover in one of the many EL AL European gateway cities in the
other direction. As such, the transatlantic flight between North America
and Europe will take place on American Airlines and the nonstop flight
to/from Israel on EL AL, thereby providing more travel options.
Additionally, frequent flyers and premium class passengers will enjoy more
benefits, such as use of the first and business class lounges of both
airlines.

  “We look forward to this codesharing partnership which will provide our
North American travelers with unprecedented access to Israel from a
significant number of additional cities,” said Offer Gat, CEO, North &
Central America, EL AL Israel Airlines. This association will further
enhance the many new service improvements EL AL recently implemented in
North America, such as the recent opening of the modern, hi-tech King David
Lounges at JFK that are equipped with a state-of-the art Business Center
and a shower, the two new Boeing 777 aircraft that are utilized on the
North American/Israel route that were accepted by EL AL this summer, the
new seats that are currently being installed in all 777 and 747-400
aircraft, a 20 percent increase in 2008 in the number of EL AL nonstop
flights between North America and Israel, and more.
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