An airline that's been closed for 6 months will now be controlled by a 27-year-old
When the going gets tough, stop and start over.
That's exactly what El Al, the flag carrier of Israel, is doing. Since March, the airline has effectively ceased operations. The carrier suspended most commercial flights due to the Israeli border closure and has only operated a handful of repatriation, charter and cargo flights since.
Even before the shutdown, El Al was bleeding cash, having recently invested in a slew of new Dreamliner jets and burdened by a high-cost labor structure.
In order to receive a 75% state-backed loan of $250 million, the government required the airline to hold a public share offering. That offering just happened on Wednesday, and the controlling shareholder is now none other than a 27-year-old religious studies student. (Yes, you read that right.)
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But how exactly did this transpire?
Well, let's back up.
Israeli law requires that the majority owner of El Al be Israeli. Kenny Rozenberg, CEO of New York-based nursing home chain Centers Health Care, expressed interest in El Al. But, the problem is he's not Israeli.
So, what’s the next best thing? Have his son Eli do it. The younger Rozenberg was able enter the fray for El Al with the newly created Kanfei Nesharim Aviation group that offered $107 million for the carrier, according to a Reuters. (The name Kanfei Nesharim is Hebrew for the "wings of eagles," a biblical reference to how God will supposedly bring the messiah.) The company then purchased a nearly 43% stake in El Al, taking over from the previous majority stakeholder Knafaim Holdings.
As for where a young religious studies student might get the means to set up a multi-million-dollar holding company, one can only wonder if the funds were from Dad – though The Jerusalem Post notes “father Kenny Rozenberg is said to be behind the purchase.”
Either way, the deal is still awaiting approval from the country's finance committee, but Eli Rozenberg is expected to meet with the Finance Ministry next week.
According to Globes, he wants to make changes to El Al’s board and invest heavily in improving El Al’s service, especially the onboard food service and operate on-time flights.
But turning around the airline could prove to be even more difficult than it sounds. For one, El Al's flagship U.S. routes have seen an incredible amount of new competition during the carrier's shutdown. American, Delta and United have all used the shutdown as a time to announce and further strengthen their hold on the U.S. to Israel market.
Related: Why United’s plan to fly 23 weekly flights to Israel isn’t as surprising as it seems
American announced new routes to Israel from Dallas and New York-JFK, Delta is going double-daily on its JFK to Tel Aviv route — including one frequency operated with new Delta One Suites — and United will offer a whopping 23 weekly flights to Israel from its various U.S. hubs.
Increased competition isn't just limited to El Al's U.S. routes. European low-cost carriers have flooded the Tel Aviv market in recent years too.
Either way, the Rozenberg ownership marks a new chapter for the Israeli flag carrier. Only time will tell if the Rozenbergs become El Al's messiah — just as the name of their new holding company implies.
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.