El-Al Marketing Analysis

El-Al grocery storeing abbreviation El-Al grocery storeing Analysis Table Of Content Chapter 1 Introduction Executive summary4 Bibliography 5 Chapter 2 An every last(predicate) overview of the confederacy Overview of the kind club.. 6 History.. 7 exposition of the patronage.. .. 8 Chapter 3 An analysis of the familiaritys business purlieu Firms industriousness and macro surroundings. .. . .. 9 The PEST Model. .. 10-12 The industries matched situation using Porters 5 Forces.. . . . 13-15 Market segmentation. . . 16-17 ELALs Attractiveness . 17 Chapter 4 The keep comp eachs Marketing Overview Mission Statement, Objectives and determine.. 18 Marketing Mix (Four Ps).. 19 SWOT Analysis. 0 ELALs important problems 21 Chapter 5 Recommendations and compendious Is the Companys Marketing Mix in tune with its marts and its objectives? 22 Solutions to ELALs main problems.. . 22 Summary and Conclusions . 23 Appendix 1 Boeing. 24 Appendix 2 calculate Sharing .. . 25 Cha pter 1 Introduction Executive Summary 1. ELAL is the leading respiratory tract in Israel.In the past it was a governing owned confederacy until privatization commenced on two hundred3. 2. ELAL owned several dozen aircrafts, which ar used for inter subject and recently national fledges as well. 3. ELAL hires thousands of employees and has several subsidiaries as well. 4. ELALs narrative is defined by the ideal of being the deem wholeness airline for passengers from and to Israel. ELAL is constantly walking the thin line regarding the policy-making status quo. ELAL confines its spiritual caboodle by keeping the Shabbat on mavin legislate, and losing capability revenues by doing so.This narrative is implemented in the digest of ELALs marketing agendum, ever claiming that it is Israels national confederation and by launching numerous patriotic campaigns. As plane section of this agenda, ELAL serves kosher food for thought as default. 5. ELAL is in a satisfying fina ncial situation. ELAL is growing constantly revenues, subscriber line value, ROE and net value be growing in a healthy manner. The companion survived impressively the latest financial crises. 6. ELAL prices its races relatively double-ticket(prenominal), chaping the passengers non-compromising earnest, rubber eraser and overhaul standards.As part of this agenda, ELAL keeps its technology in a state of the art level, using young and improved American planes. 7. ELAL broadens transparent and non-transparent service, such as constant vaporizeer benefits on one hand and recruit-share agreements on the some other. ELAL could hide its dis emoluments by exploiting the benefits that globoseization offers, with violence on international collaboration and pass combined run to its clients such as hotels, car rentals and others. 8. ELALs received and future ch eachenges leave alone be defined and influenced by the constant entrance of national and international competito rs.ELAL bequeath throw to emphasize its advantages, maintain its technical and marketing numbers. Bibliography http//en. wikipedia. org/wiki/El_Al http//www. bizportal. co. il/shukhahon/bizcompbaalsump. shtml? p_id=1087824&am pc_id=1152 http//www. elal. co. il/ELAL/Heasbrew/States/ ecumenic/ . http//www. elal. co. il/NR/rdonlyres/2D943294-0735-4E30-9C7C-9FCDA40B23E7/0/FactSheet20092final. pdf http//www. youtube. com/watch? v=8nPXttPmNE0 Chapter 2 An overview of the order Overview of the company EL-Al (hereinafter the company) is one of the greatest Israeli symbols. It was one of the most famous trademarks of the sm only state.The companys story intertwined with Israels origins. The company is operating in a national state of mind, aiming towards patriotic emotions based on the Israeli narrative of pride, safety and security. The company markets and considers itself as a national service offerr, submitting itself to the whims and needs of the country. Not once the company has be en involved in security or social operations (the joint confidential operation of considering Ethiopian Jews to Israel), even in the price of losing money (i. e. non zaping on the Shabbat), all in order of keeping the image of the national company.The company traditionally meshd international fleeings alone, and lately it operates domestic ones as well. The companys headquarters and mother- drome are located in Israels international airport Ben-Gurion. The company has evolved and changed throughout the years, and has varied its basic definition from a government organization to a private company. The privatization has been complete mid-2000s (that is less than 50% of company shares are kept in by the government). The 2nd decade of the 21st century leave behind colored by security issues, ever growing emulation and the continuation of the privatization process.It entrust be the first decade in the companys history that it will fox to deal with strong competition over the Israeli customers, since the monopoly is finally over. EL-Al will have to adapt, and has already started, to a ruthless combative market. This paper will deal with the companys strategies and marketing agenda and status. History EL-AL Israel airways LTD. was incorporated and became Israels official airline company on November 1948. The company was incorporated as a national company fully owned by the government. The companys fleet was based on second hand American fabricate woodworking planes.In the first couple of years the company made only mercantile passenger flights, and since 1950 it commenced cargo flights as well. The D. N. A of the company was heavily influenced by the semipolitical scene in Israel, creating an ongoing non-Sabbath momentary and kosher food serving. One more than influence that helped to position the companys image in Israeli society was patriotic and historical flights bringing Jewish communities to the refreshful-fangled states, from Arab countri es and India. One memorable flight was the one bringing Nazi war criminal Adolf Eichmann.In the mid 50s EL-Al conducted two several actions transatlantic flights and the purchasing of British airplanes. Later on a purchase of Boeing 707 was made. On 1960, for the first metre, EL-Al became profitable. The 60s were a boffo decade for the company, growing from year to year and demonstrating respectable financial figures. The good fortune of the company commenced at the end of the 60s. Security issues were magnified cod to several terrorist attacks. EL-Al took some adventurous decisions, starting with the purchasing of expensive Boeing 747 aircrafts.The latter purchase was too expensive for the short run, as expenses exceeded revenues in a large magnitude. On top of things, due to inner political reasons EL-Al suffered strikes and some other political influences (see chapter). The most outlined aftermath of the 80s was the collapse of the iron screen, revealing a wide spread bundle of new flight destinations. The 1990s were a decade of coming changes, as privatization voices started to be heard. These voices were boosted thanks to the uprising charter flights and decreasing numbers of phaetons in Israel.Another major(ip) negative effect was the 25% increase in fuel prices. The uprising competition and environmental changes forced the company to tend towards the inevitable step of privatization. The privatization of EL-AL commenced in 2003. 15% of the company was offered to grease ones palms in the Tel Aviv Stock Exchange. This process protracts as more and more shares held by the government were sold to the commonplace. Definition of the business EL-AL is a publicly traded airline company. It is traded on the Tel Aviv Stock Exchange (TASE). EL-AL fork outs international and domestic flights.It also provides shipping services and touristic ones as well. General Details The company owns a 37 aircraft fleet, all manufactured by Boeing (737,747,757,767,777). The company flies to 38 non-stop service destinations worldwide and has 440 weekly departures. The company employs 5,847 workers and is one of the biggest in Israel in that factor. The company has business relationships in the form of code-share agreements () and domestic service touristry providers. The company has a frequent bank note club. The company conducts its financial reports by IAS 34, and has adopted the IFRS international code.The company is owned by several owners besides the public, and some of its owners are investment houses. The full control list is as follows The company has increase its equity from 2010 q2 to q3 by 51. 65%, its revenues by 12. 57%, ROE by 81. 81% and net income by 186%. Chapter 3 An analysis of the companys business environment Firms industry and its macro environment The business environment in which ELAL is performing is the civil international air creator arena from and to Israel. Political environs The company competes with other 103 fl ight companies that work within the Israeli territory.ELAL, which started as a governmental company, worked and button up working harmonise to the government decision since 1977, this decision, determined that ELAL will not work or fly neither on Shabbat nor on Jewish holidays and on that pointfore it does not fulfill its maximum revenues potential. ELAL is the leading aviation company that works within the Israeli territory flying in and out of Israel. companionable environment ELAL owns several subsidiary companies, which deal with a flesh of complementary goods and services for the aviation world.One its main fields is cheap flight to Europe operated by the subsidiary company San dOr, which in 2009 increased its revenues by 2%, comparing to the previous year. Another major field is the food industry provided by the subsidiary company Tamam & Burenstein Catering. This company deals with producing and supplying food to airplanes controlled by ELALs management. ELAL has galore(postnominal) a(prenominal) more subsidiary companies in the following areas renting flight supplies, transportation of cargo and maintenance, selling vocation free products and converting currencies during its flights.Seasonal changes in this area and the fact that the world is becoming a global colonisation forces ELAL to adjust itself to a hostile and competitive business environment. It obligates ELAL to recognize new niches in the market, following continuity in finding new company skills, receipts in existing ones, and adjusting human resource. These factors can bring ELAL to be a leading company with a competitive advantage that will keep it leading of its competitors. The PEST Model Political * ELAL, as a governmental company that was privatized (2005) still relies on political decisions affecting its business choices.One of the best examples is that the company was anchored in the Government Companies Law. As a result, in that respect is a consistent political intervention when referring to taking business actions. A few years ago, ELAL had to mold whether to stick with one airplane supplier the American Boeing (Appendix1) and to renounce the European airplane supplier Airbus. afterward examining the business aspect, it decided to equip itself with the Airbus airplanes due to their more attractive price and cheaper maintenance costs. However, in 2004 the U. S. overnment pressured the Israeli government (ELALs owner back then) into working exclusively with Boeing and therefore ELAL did not have any other choice but to do just that. * Until 1992, ELAL flew seven days a week until a political decision was made to prohibit flying during Shabbat and Jewish holidays. As a consequence, ELALs operable time decreased by 15%. In fact, after 2005 when the company was privatized, it was decided that even though they were no obligated to do so, ELAL would keep the Status-Quo by respecting the Shabbat law (a strategic way to gain unearthly publ ic adherence). Israel is geographically located in one of the problematic areas in the world, surrounded by hostile Arab countries. As a consequence, ELAL is forced to extend its flying course to its different destinations. The fact that Israel does not have good relations with many countries in the world, limits ELALs destinations. Moreover, the delicate security situation in Israel forces ELAL to consume excessive security examinations within Israel and overseas. This security policy creates a massive cost to the company. As a result, today ELAL is well- fuckn for its security achievements.Economical * The Global Village the world is becoming a big global village. People are flying more and more, from and to many defines. As a consequence of improvement in financial opportunities and shorter flight duration, they divide their vacations into many small vacations during the year. This economical factor brings to abundance in the financial situation in general and in the flying i ndustry in particular. Nowadays ELAL is commission on international destinations being affected by the world wide economical changes, such as dying financial crisis in 2007. The competition with many other flight companies is growing intensively. ELAL must ride action in order not to fail in the competition, usually this means either to unhorse prices drastically or reduction operating expenses. * There is an ongoing decrease in the incoming tourism for the last decade. Due to security and political situation in Israel, many tourists prefer either to fly with foreign companies or not to fly to Israel at all. According to statistics, in 2009 2M tourists visited Israel, a decrease of 6% from 2008. * Increase in gasoline prices had raised ELALs flight tickets prices by 5% to 10%. Social The financial recession was supposed to decrease the financial options to the public and so decrease the amount of Israelis change of location abroad. Nevertheless, there has been a large increase in Israelis travelers overseas at about 10% a year. This fact shows the change in Israeli consumption habits. It seems the Israeli, men and women, have more free time than ever which allows them to plan their leisure time. * The climate in Israel enables worldwide tourism to come to Israel in all seasons. The night life is longer and safer than many other places in the world tourists who visit Israel enjoy this social freedom. The value of life and death is quite different in Israel due to struggle for survivor. Security and safety are precise important and are overvalued by the customers and ELAL has a reputation regarding these issues. * Environmental awareness *** nows social trend is to be green and clean. ELAL collaborates and support many green organizations and encourages youth into creating new green-tech. This promotes ELAL as an environmental friendly company while increasing publics adherence. * Kosher food one of ELALs largest audiences is the Jewish religious peop le.Their use up is for kosher food and ELAL is one of the only companies which provide such an option. ELAL is genuinely tolerant to this public and therefore it gives a competitive advantage. Technology * ELALs airplane equipment is more sophisticated, its activation is cheaper than ever, expenses are bring low and the personal service within the plane technologically pert is a step ahead from many other companies. The race over the heart and pocket of the number customers brings ELAL into a major efficiency while decreasing the market price. ELALs website in the era of profits ELAL began to sell tickets through its website and its entire marketing propaganda took few steps further. In the long run, the website exposes the audience to genuinely important and relevant details that are handier. This obviously minimized the number of flight agents while transforming them into tourist advisors. The revolution of the customer service is relying now on the innovation in technolog y. This improves the commercial interaction among company and the customer. The industries competitive situation using Porters 5 Forces The threat of the entry of new competitorsELAL owns the largest market segment in the Israeli aviation field and therefore it has to create many bars to use up new competitors. The company accomplished that by having full control over a mixed bag of goods and services such as transporting passengers and baggage, a variety of destinations and high security level. There are many factors that trifle it difficult for other competitors to enter the market * Initial investment in order to found a new aviation company, it is necessary to have sufficient capital for buy airplane navy and technological infrastructures.Moreover, there is a large depreciation over the equipment this field. The maintenance of an airplane company can sometimes appear to be luxurious one but not necessarily a profitable one. * elicit costs jet fuel costs are 50% out of t he operational cost. * Legal barrier flight companies are responsible for licensing and employees training in order to keep the pilots and technicians qualified. * Economic factor- the aviation industry is one of the first to be affected from financial crises and can easily be exposed to bankruptcy.For instance, the last financial crisis in 2007 made major decrease in the tourism industry and therefore the demand for flying decreased and many aviation companies went bankrupted over the world. * Aviation Clubs in the last decade, aviation companies have created clubs in which encouraged passengers to fly with certain companies by gaining points and getting free tickets to fly within special companies. This created a huge barrier for new companies which indirect requested to enter the market. The competition in this field is very intense and competes on passengers benefits, flight courses, and variety of destinations and level of service.ELALs strategy for combating this competiti on is 1. Flexibility in scheduling flights according to different seasons and international events (holidays, Olympic Games, sport events, high season-low season, etc. ) 2. Increasing flight frequencies to popular destinations by increasing the number of co-sharing flights (cooperation with other companies). 3. A consistent improvement of services within the flight, especially the comfort of the seats, quality of food and entertainment during flights. Most of the focus goes to First Class. 4.Frequent flyer club ELAL has found a club in which it compensates its member with highly valued benefits like seat-upgrading, flight tickets discounts, etc. 5. Promoting them through worldwide advertisement. The dicker power of customers (buyers) The customer thrives to push prices down and quality of services up. The power of the customer depends on the added value he gives to the company. The option to choose from a large variety flight companies is a threat to ELAL. A constant recession can decrease the loyalty of one customer to a certain aviation company because some other companies will offer lower prices.In this case, he will obviously choose the cheaper company to fly with. The bargaining power of suppliers The bargaining power of suppliers is different from the bargaining power of the customers. The suppliers push prices up while decreasing quality of their products and services. ELAL is very much affected from the competition existing in the field and depending on its suppliers that would make it difficult for ELAL to maintain the level of their service quality and competitive prices. Many of ELALs suppliers have exclusivity in their field and the friendship that they have, made them powerful against ELAL.The fact that many of ELALs suppliers are also it subsidiaries, increases its profitability and neutralizes the bargaining power of these suppliers. However, the aviation field has two main suppliers (that are not subsidiaries to ELAL) jet fuel suppliers and airplanes suppliers. In Israel there are only a few jet fuel suppliers whereas abroad the suppliers are many, and the decision of buying fuel from one supplier depends on price and not on an exclusive supplier. Aviation companies in Israel have a weak bargaining power against fuel suppliers as a consequence of political issues that affect the price of fuel.There are two main airplane suppliers in the world the American Boeing and the European Airbus. ELAL has on its behalf airplanes made by Boeing only, as we mentioned earlier due to American pressure over the Israelis in the days when the company was owned by the government. This kind of relationships amid governments created a dependency on one supplier with a high level of bargaining power in a market which is limited in the first place. The threat of substitute products or services ELAL offers its customers a variety of unchanging destinations all over the world.Moreover, through its subsidiary San Dor, ELAL offers a variet y of flights to seasonal destinations flying on weekends and holidays. Goods and services given in parallel fields are called substitute products. These products have a major power influencing management decisions due to the possibility the customer will decide to put his money in another company (in another substitute product). A substitute can demolish a company. A substitute product for Aviation Company like ELAL is the low cost aviation companies as EasyJet, Arkia Express, etc.These companies reduce flight tickets prices (30-50 Euro) by charging only for the flight itself and any other service is being paid extra (luggage, food, drinks, etc. ). ELAL invests millions of dollars in a good and full service that will bring its customers to their destiny. The price factor sometimes defeats the comfort and the quality of service and leads to harming ELAL profitability. The intensity of competitive contestation The aviation industry has many leading companies all over the world, where each one strives to have a epoch-making differentiation which will attract customers hearts and pockets and enlarge their market segment.Barriers to exit ELAL have code sharing with many foreign airlines (Appendix2). As a result, it has full access to internal information of these companies, which enables it to know about the activity of its competitors. Similarly, ELALs delicate information is accessible for its competitors. If ELAL decides to breach the code-sharing with the other companies, its future is lost (ELAL may decide the barriers to exit are too significant and will be forced to continue the code-sharing).As previously mentioned, ELAL has many share-codes with foreign airline which its customers and employees can fly with (with same conditions they would have got from ELAL). This sens provides full accessible information of flight and price on-line. This accessibility improves ELAL profitability. Target Market Potential Market Addressable Market Target Market Potent ial Market Addressable Market Total Market Total Market Market segmentation Macro segmentation Total Market A collection of people sharing the same characteristics that cause them to have similar needs to fly from one place to another.Potential Market Men and women, all ages, with no restriction to fly (pregnancy, heart patients, etc. ), who ask to fly from one place to another. Addressable Market Men and women, all ages, with no prohibition to fly (pregnancy, heart patients, etc. ), who want to fly from and to Israel. Target Market Men and women, all ages, with no prohibition to fly (pregnancy, heart patients, etc. ), who want to fly from and to Israel and can afford it. People who live geographically close to ELALs destinations. Micro segmentation potential audience Business * Age 30-70 years old. cable Business men and women who have international businesses. * Lifestyle Usually Frequent Flyer members who fly on behalf of their companies. A population who usually flies in Business and First Class. Pleasure * Age 13to 18 family trips 21 to 30 backpacking, vacations and trips. * Occupation Students and families. * Lifestyle Due to the variety of ages in this segment, there are all kinds of lifestyles (with average+ income). Religion The Jewish religious businessmenfamily members from all over the world choose to fly ELAL due to its policies regarding kosher food and respecting Shabbat.This is a very dominant sector among ELAL customers and therefore ELAL treats this segment with delicacy and tries to be as religious oriented as attainable. ELAL strives to be as least mass marketed as possible by approaching its different segments that we mentioned separately. Nevertheless, its last commercial advertisement with Omri Casspi, approaches all three segments by arousing the mind of Zionism among all. This is an emotional commercial which emphasizes that ELAL is the leading national airline in Israel. ELALs AttractivenessELAL is in the business of civil international aviation arena from and to Israel. It is quite straight forward that the overall industry draw does not apply that every firm in the field will double back the same profitability. Firms are able to apply their core competence, businesses model to achieve a profit above the industry average. afterwards examining Porters five forces, we analyzed ELALs attractiveness within its industry. Backward vertical integrating dealing with supplier bargaining power ELAL acted wisely when buying most of its suppliers and neutralizing their power.However, when considering the industry, most of the money is in the jet fuel industry and airplane suppliers. If ELAL could buy these suppliers, it would have a huge competitive advantage among its competitors. Nowadays, ELAL does not have the means to buy such companies (like Boeing) and we would not suggest doing so. Forwards vertical integration Nowadays, ELAL does not control its customers but rather the customers choose ELAL. ELAL has the option of buying tourists companies (such as Ista), online purchasing flying tickets companies (such as netravel. com).By doing so, ELAL can increase its profitability and customer flow. The fact that tourist-agencies are becoming old-fashioned, more and more people are buying flight ticket via websites, ELAL could create a significant competitive advantage by buying these sites. This would obviously make ELAL more attractive above the industry average. level integration As we mentioned in the threat of substitute products or services, ELAL main threat is the low-cost companies that offer cheaper prices by offering only the flight itself with no additional services. This product is targeted to a segment which ELAL has not addressed yet.These clients seek for short flights within Europe or the U. S. with the most attractive price. Nowadays ELAL does not offer such product and by merging with such low-cost company, they would probably increase its profitability and addressed a new unutilized market segment. Chapter 4 The Companys Marketing Overview Mission Statement, Objectives and Values ELAL has set many targets, which the main one is to operate as an integral part in the global aviation competitive world, while keeping its uniqueness as an international airline company of Israel. In addition, ELAL is defining the following goals 1.Uncompromising level of service 2. First priority safety and security of the passengers 3. investiture in its employees high level of training, focus on their welfare in order to promote the companys success. Happy employees = successful company. 4. Promoting profitability by innovation and initiative, maximizing shareholders wealth. 5. Be an integral and significant company in the international aviation world, while keeping it uniqueness as the Israeli national leading airline. 6. Prioritizing the destinations according to profitably and customer demand. 7. Maintaining only new airplanes. . Efficiency and saving retire ment plans, reducing the number of offices overseas. ELAL defined the aforementioned goals as part of ELALs 2010 project and is going to achieve these goals by implementing its vision. ELALs vision * To lead the aviation market in Israel and to be the first choice for all customers traveling to and from Israel. * To be a winning, profitable and successful commercial company that excels in all areas of activity. * To provide the highest level of uncompromised quality service, for the benefit of its customers, employees and share holders.Marketing Mix (Four Ps) The marketing mix is the faction of several techniques that are bring used in order to achieve marketing strategy and goals. proceeds * Products ELAL offers the service of national and international flights. * Variety of products Different levels of services Economy class, Business class and First. * serve ELAL is very service oriented. It offers its client a high level of service starting even before flight purchasing t ickets online, express online check in, luggage pick up, duty free on board, linger and Frequent Flyer Club. Pricing ELAL does not attempt to be a low cost company and therefore its prices cannot compete with such companies but rather with full service flying companies. It is known that ELALs tickets are not cheap but whoever chooses to fly with ELAL knows he will get a return on his money. * Frequent Flyer members receive free upgrades and free ticket according to their mileage. * ELAL spontany a new service ELAL offers is the last minutes flights with lower prices. This is oriented for spontaneous people who dont want to settle for service but do not want to spend much on the ticket. onward motion * ELAL promoted itself via a various media means TV commercials, outdoor adds, Newsletters for its club members, collaboration with credit card companies which offer ELALs points * ELAL promotes itself as the national Israeli airline by being the official transporting airline to publi c organizations (like the Israeli football delegation) and well known personalities (like the President). Place * ELALs destinations are wisely chosen according to demand. It operates in international and principal airports accessible to many other destinations. SWOT AnalysisStrength * A variety of services and goods (Fun Day, ELAL Spontany) that enables to attract many segments in the market. * ELAL is an international brand in the field of security and safety. * Kosher food and respecting Shabbat. * Many corporations with other international airlines. * Only one airplane supplier. Weaknesses * Does not operate on Shabbat and on holidays. * Unstable security situation in Israel reduces number of customers. * mettlesome prices relatively to the market. * ELAL does not maintain constant collaboration with agencies abroad and loses potential market. Geographically Israel is located between hostile countries which extends the flight courses and enlarge the duration of the flights, in crease fuel expenses, etc. Opportunities * ELAL e-ticket purchased online saves time and money and enlarges potential clients. * ELALs high reputation reduces advertisement expenses. * ELALs website is a commercial platform which reduces advertisement expenses. Threats * lower-ranking cost companies offering cheap flying tickets. * As the Israeli national airline, ELAL is exposed to terror attacks on its airplanes. * The increasing prices of fuelELALs main problems Keeping the Status Quo ELAL does not operate on Shabbat and holidays. The company loses 15% of operational time due to its commitment to the status quo which allows other companies to enjoy ELALs customers. Expending variety of services ELAL is exposed to a severe competition with low-cost companies. Such companies offer flights with no other extra services, airplane as an transporting mean and no more than that. Chapter 5 Recommendations and Summary Is the Companys Marketing Mix in tune with its markets and its obj ectives?We find the companys marketing mix in tune. The company provides its products in relatively high prices. Following the latter, the prices are a derivative of security and social aspects as described. The company pays relatively high salaries in order to obtain the level of service. Although privatized, the company maintains its objective to be the national company of Israel, first by slogans and continued by ads and commercials i. e. the latest commercial staring NBA player Omri Casspi, who is, as ELAL wants to be, a national pride and patriotic icon.ELAL has a much focused hub-oriented hub airport destinations, which are by definition very attractive ones. Solutions to ELALs main problems Keeping the Status Quo Solution On the one hand, if ELAL decides to break the status quo, it can realize its potential market and become equal to its competitors and even create an additional competitive advantage. On the other hand, this delicate issue can create antagonism among religiou s passengers who are a dominant factor to ELAL. This is a problematic situation which still should be considered in order to maximize ELALs profitability.Expending variety of services Solution ELAL should examine the option of offering this kind of service in order to provide its customers a larger variety of services. For example, ELAL can operate a weekly flight to various destinations according to the low cost policy. By entering such a market, ELAL could enlarge its segment markets. This kind of decision could have a positive effect but also damage ELALs reputation. Summary and Conclusions As a small state, Israel does not have many commercial or social icons.Maccabi Tel Aviv, high tech and the Dead Sea are few that could be mentioned. ELAL is another one. As part of the Israeli pathos, ELAL played an important power in Israels short history. ELAL has evolved from a national owned company with all that entails (unions, heavy politics, non-profit environment etc. ) to a profitab le and role model airline. ELAL determined a strategy based on the evolving and more competitive environment most it and thrives for profit maximization as well as keeping its image as the national airline in Israel.To do the latter, ELAL determined prices, strategic agenda and image by the aforementioned guidelines. The future will tell whether ELAL would be able to deal with the challenges of tightened security, growing competition and ever changing political environment up to now, it seems to be on the right track. Appendix1 Boeing *Boeing 737 700 800 Total in service11 2 eye socket4870km EnginesC. F. M. Cruising speed873kph/Mach 0. 8 Length110ft (33. 6m) 129ft (39. 5m) wingspread112ft,(34. 5m) Boeing 747 200 Total in service1 CargoRange10000 km EnginesFour Pratt Whitney Cruising speed917kph/Mach 0. 84 Length231ft 11ins,(70. 7m) Wingspan195ft 9in,(59. 6m) *Boeing 777 200 Total in service6 Range12670 km EnginesRolls Royce Cruising speed864kph/Mach 0. 83 Length209 ft 1ins(63. 7m) Wingspan199ft 11ins,(60. 9m) *Boeing 747 400 Total in service6 Range11860km EnginesFour Pratt Whitney Cruising speed927kph/Mach 0. 85 Length231ft 11ins,(70. 7m) Wingspan213ft,(64. 9m) *Boeing 767 Total in service8 Range10000 kmEngines two Pratt Whitney Cruising speed873kph/Mach 0. 8 Length159ft 2ins,(48. 5m) Wingspan156ft,(47. 6m) *Boeing 757 Total in service5 Range6100km EnginesTwo Rolls Royce Cruising speed873kph/Mach 0. 8 Length155ft 3ins,(47. 3m) Wingspan124ft, 10ins,(37. 9m) Appendix2 Code Sharing Airlines Destination American Airlines Code Share flights operated by AA from Europe to the USA and flights operated by AA within the USA. To view the list of destinations. Iberia Flights between Tel-Aviv and Barcelona or