business

El Al to Acquire $3.4 Billion of Boeing 787s to Renew Jet Fleet

El Al Israel Airlines Ltd. agreed to buy and lease as many as 15 Boeing Co. 787 Dreamliners, valued at $3.4 billion or more at list prices, to help refresh the carrier’s long-haul fleet.

The accord also includes purchase rights for an additional 13 planes, Boeing said Wednesday in a statement. The Dreamliner, which entered service in 2011, has a list price of $224.6 million for the smallest 787, though airlines typically negotiate a discount.

“The Dreamliner will be an excellent addition to El Al’s all-Boeing fleet and marks another chapter in a partnership between our two companies that spans over half a century,” Boeing Commercial Airplanes Chief Executive Officer Ray Conner said in the statement. Boeing didn’t specify which of three 787 versions El Al was acquiring.

El Al currently has 41 Boeing planes in service, according to its website. The new 787s could be used to replace some older models such as the 767-300ER and the 747-400, helping the Lod, Israel-based carrier boost efficiency as it expands flights to North America. In June El Al added Boston to its list of three other U.S. and Canadian destinations.

Boeing is preparing to increase output of the 787 to keep pace with the wide-body jet’s growing backlog. The Chicago-based company boosted Dreamliner deliveries to 34 in the second quarter, the highest for any of its twin-aisle models, as Boeing topped analysts’ profit estimates.

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