Gonen Usishkin, El Al's new CEO, once flew as a pilot and is now trying to direct the company away from its financial problems. (photo credit: Courtesy)
Israeli national airline El Al named Gonen Usishkin as the next CEO of the company on Monday.
Usishkin - who is set to begin the job in the coming weeks -- replaces David Maimon, who tendered his resignation in November amid falling stock prices. Maimon served at the helm for four years. During the past six months, El Al's stock has fallen more than 50%.
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Amid news of the new CEO, El Al's stock climbed up by 2.8% as of Monday 11:00 a.m. on the Tel Aviv Stock Exchange.
In 2016, Usishkin was named vice president of trade at El Al. Before that, he worked as head of strategy and business development, where he helped the airline acquire its top-notch 16 Boeing 787 Dreaminers. He's been at the company since 2004, when he started as first officer with the 747 aircraft fleet.
The incoming CEO has a BA in economics and management and an MBA, both from Tel Aviv University. He also served as a combat pilot in the Israel Defense Forces.
El Al, Israel's flag carrier, is facing tough times as the company has been steadily losing market share at its main hub, Ben-Gurion Airport. That is partly due to deregulation and the “Open Skies” agreement, which opened up greater competition from European and international carriers.
According to data from the Israel Airports Authority, El Al carried around a quarter of all passengers at Ben-Gurion Airport during the fall of 2017. The company is likely not to have achieved 30% market share in 2017 – for the first time in recent history – jeopardizing the reduced fees and benefits it gets from the IAA.
It is unclear how Usishkin will revive the El Al's flagging prospects, along with nudging it towards a "transfer hub" model. Many airlines now offer transit services, where passengers fly non-direct through a hub. But for security and logistical complications, El Al hasn't turned Ben Gurion into a transfer venue, where only a few thousand passengers annually transfer through the airport.
The previous CEO, Maimon, may have been pushed out amid turbulent negotiations with the pilots union, Hebrew media reported at the time.
An El Al representative was unavailable for immediate comment.
The company has a market value of NIS 750 million. The airliner announced earlier this month that it would soon commence direct flights to San Francisco and Silicon Valley from Tel Aviv.