KCQs - EL AL'S POTENTIALS

From the curiosity of wanting to know where exactly Israel is on the world map, I was surprised by its great location, right in the middle of Europe, Africa and West Asia. (Israel is a little read line on the map)

I then further researched and found out Israel's GDP per capita is on the top 30 of wealthiest countries according to the IMF (International Monetary Fund), its GDP per capita is even higher than countries like Russia, Saudi Arabia (those are knowingly rich in resources and oil)

That GPD per capita makes a lot of sense to me when I read through El Al's annual reports which it stated the difference between incoming passengers are way less than outgoing passengers.

So why doesn't El Al take advantage of its wealthier population and increase more flights to other countries? Why don't the board of directors work strategically to increase more traffic right grants accessing more destinations? Why keep blaming on external factors? (Read more about risks affect El Al in my previous post).

Perhaps one of the competitive disadvantages El Al has, which prevents it from further improvement in long distance flights, that its aircraft fleet are aging. The newest aircraft are 777-200ER are averaging 10 years old. This makes it more difficult for EL Al to compete with the like Emirates Airlines and other new low cost carriers in the region.

Another question posed in my mind is that El Al Air, even though a national airline for Israel, is not a member of any global airline alliance, namely StarAlliance, OneWorld or Skyteam.

In short, despite of Israel's geographically ideal location and its wealthy population, El Al's board of directors have not made much focus on tackling its specific factors in order to improve profits.