[Update: Permit Granted, Board Will Be Replaced] Goodbye Borovitz, Hello Rozenberg: El Al Will Soon Be Under New Management

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Update: The state of Israel has given final approval for Eli Rozenberg to control El Al. There is a condition attached that he must appoint a board of directors and CEO with at least five years of experience of management in the aviation sector, or who have previously been senior executives with publicly traded companies.

His holding company, Kanfei Nesharim Aviation, says that it will replace the entire board of directors with “leading professionals with major experience in the areas of finance, law, aviation and security.”


Originally posted on 9/29:

Eli Rozenberg purchased a controlling stake of El Al 2 weeks ago in a public offering that didn’t attract any other serious bidders.

The controlling Borowitz family worked to attract other buyers that would allow them to stay in control, but they didn’t materialize. The Borowitz family did not invest anything in the offering.

Things got dirty last week when El Al’s CEO Gonen Usishkin, presumably under direction from the Borowitz family, filed a complaint asking the state of Israel to block the transfer of the airline to Eli Rozenberg. He alleged that Eli Rozenberg isnā€™t the real owner of the airline and that his father Kenny Rozenberg is the owner. Israelā€™s golden share of El Al requires that the owner of El Al be Israeli, and only Eli has Israeli citizenship.

Eli Rozenberg reported that the money to purchase the airline was a loan from his father, while El Al management argued that it was a gift.

The complaint was sent to Minister of Defense Benny Gantz, Minister of Transport Miri Regev, and Minister of Cyber and Digital Matters David Amsalem. All 3 need to sign off to issue a permit to allow Eli Rozenberg to control El Al.

If that’s not peak El Al, I don’t know what is. For more than 6 months they took people’s money for tickets for flights they didn’t operate and refused to issue refunds. Now they took over $100MM from Eli Rozenberg and are trying to refuse transferring control of what was purchased.

Globes is now reporting that El Al’s complaints were already tried and rejected before the public offering and will be denied again. The state of Israel will soon be issuing a permit for Eli Rozenberg to control El Al. I wish him the best of luck in turning that ship around, he’s going to need it!

I daresay Mr. Usishkin may want to brush up his rĆ©sumĆ©. šŸ˜‰

HT: tavster, via DDF

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35 Comments On "[Update: Permit Granted, Board Will Be Replaced] Goodbye Borovitz, Hello Rozenberg: El Al Will Soon Be Under New Management"

All opinions expressed below are user generated and the opinions arenā€™t provided, reviewed or endorsed by any advertiser or DansDeals.

Accountant

Food for thought;
A stockholder is not ‘exactly’ management, per the below:
Stockholders elect management (a separate party), management runs the entity.
In theory, should the stockholders be unhappy how management is running the entity, they can vote to have management fired and replaced.

yankel

If Borovitz end up getting his complaint accepted will Rozenberg get a refund on his $100MM?

Usishkin

Now I wonder which of his ancestors the famous street in Shaarei Chesed is named after

Ezra Dayan

Dan for CEO!

Moshe

So is Elal giving refunds yet? They still holding on to about $5000 of mine

Stam a guy

Just dispute with CC. In my case, was a simple pain-free process with Chase which had credit posted to account next day.

Joe

Borowitz should stick to making those delicious in-flight kosher meals

Dave

Wouldn’t it have been easier and quicker for Kenny to buy a Jerusalem apartment and become a citizen of Israel? He can still maintain his residence in Monsey, still maintain dual-citizenship; still operate his American healthcare facilities, but now he’d own ElAl and have a place to go for Pesach.

yk

DAN,
I’m sure Eli Rozenberg knows a lot of you and I believe he will take in consideration to replace Mr. Usishkin with DAN!!!
will you accept it?

shmuel

Sorry Joe, Borenstein makes those “delicious kosher meals” not Borovitz. By the way they are owned by El Al

moe

“Eli Rozenberg reported that the money to purchase the airline was a loan from his father, while El Al management argued that it was a gift.”

Hey El-Al, the money you we gave you for the flight was also a gift?

Dan As Elel CEO Fan

LOL
I guess El-Al sees loans and gifts as interchangeable

ebloch

From El Al to Matmid Club Members

In recent months, EL AL Israel Airlines has been facing the biggest crisis that has ever befallen the aviation industry against the backdrop of the Coronavirus pandemic. The directives and travel limitations of the State of Israel and other countries, along with public health concerns, have almost completely halted our activities.

As a result, we have had to take extreme but necessary steps that have impaired our ability to provide you with the service you rightly expect in all areas where you are used to being serviced. From the outset of the crisis I believed that if we survived, there would be a chance to offer you everything you expect from us. That is why we have worked to formulate, together with the State of Israel, a plan for EL AL that will assist us to overcome the crisis.

Your high expectations of us is our goal and in the last few months we have not been able to meet it and we know we have let you down. I apologize to you and thank you for your patience and understanding.

Many of our customers have tickets for flights that have been canceled in recent months due to the Coronavirus pandemic.

Due to the fact that the assistance plan has commenced, I would like to update you on the refund policy that we have been working on in recent months.

As part of the policy, we are addressing customers whose tickets for flights canceled during the coronavirus period and offering an attractive alternative of a credit, which can be transferred to another passenger and redeemed on any flight, with a total value of 125% of the original ticket value or a refund.

In view of the large number of canceled tickets, and the heavy workload required, our contact with customers will take some time and be gradual.

At the same time, I am pleased to announce that we are planning to resume flight operations under the existing restrictions and will return from the beginning of October to operate flights to Athens and mid-October to the main destinations of New York, Paris, London and later to Los Angeles and Miami.

We are working to improve the sales system and prices, to adapt the route network and the fleet of aircraft to the new reality that has been created and to improve the Matmid frequent flyer program.

We are doing all that we can to deal with the Coronavirus crisis, in cooperation with you, our customers, to be even better and worthy of your trust in EL AL.

Happy New Year,
Gonen Usishkin
CEO
EL AL Israel Airlines

Yaron Cohen

Perhaps once Eli takes control of EL AL he will bring in a team of forensic accountants to determine exactly how and why despite TLV being one of the most profitable routes for every airline that flies there, EL AL was unable to attain sustained profitability since privatization.

Sammy

Based on what I’ve read, it’s the pilot’s union. The pay at El Al is significantly higher than pilots anywhere in the world. Several times more.

Gaby

This is getting exciting.
Hoping for a new ELAL that we can all be proud of as a jew.

Zach

That moment when I see a picture of Eli and I realize that I know him, and I finally put two and two together šŸ™‚

Dave

“five years of experience of management in the aviation sector…” I knew some toddlers that had experience playing with toy airplanes which could have run ElAl better than the prior management

Lcm

Dan, do you qualify for the five years of experience in aviation? šŸ˜‰

YH

Will El Al be flying regularly from NY to TLV in October or an we still expect cancellations?

Yoeli

i hope the rosenbergs can turn this airline around. Its not easy from basic customer service flaws to managing people on the flights. I would like to point out a few points from my experience flying frequently. they should implement rule number one all pilots stewards and personnel must be on time and arrive early to flight zero tolerance for being tard. I cant even count how many times we ere late because the flying staff were late. they need to make a point of flights leaving on time. it really makes the flight enjoyable and makes a difference. number two they need to figure out the charaidy seating situation. if someone does want to sit between two genders, reserve a isle seat!! or if a person doesnt want o sit next to a certain gender they should make the last 2 row in the back for them. many times we were late because of this. they need to learn how to accommodate everyone. if there are trouble makers ban them. not everyone needs to suffer because of a few crazies. in a nutshell that’s my experience.

MUSHU

Eli Rozenberg should reach out to Mr. Dave Hilfman, former Senior VP of Sales at United and prior to that, many years at Continental and Eastern. El Al could certainly use Mr. Hilfman’s management expertise.

Dave is good family man, very humble, well respected in the aviation industry and a genuine leader who will have the interest of El Al at heart. Dave was an advocate of expanding UAL’s service to Tel Aviv.

Dan\'s the Man

Dave, if you want the job at El Al, send in your resume. No need to try to get hired through DansDeals.com

Mendy

Dan,
Will you now get to publish your interview?

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