After an Israel Securities Authority investigation and the resignation of chairman Israel Borovich, El Al Israel Airlines Ltd. (TASE: ELAL) faces another challenge. The Israel Civil Aviation Authority told El Al unit Sun D'or that it is considering cancelling its operating license in another week and a half, on April 1st.
El Al, in a notice to the Tel Aviv Stock Exchange (TASE) today, said that it has not yet received a formal notice from the Israel Civil Aviation Authority.
European authorities have recently been investigating Sun D'or's management as an independent company, and raised various questions about the company's licensing, operating methods, and company structure. After meeting with Sun D'or management and Israeli regulators, the Europeans said that they are considering placing operating limitations on Sun D'or flights to Europe.
The company was founded in 1977 as a subsidiary of El Al under the name El Al Charter Services Ltd., and changed its name to Sun D'or in 1981.
Published by Globes [online], Israel business news - www.globes-online.com - on March 20, 2011
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