El Al Seeking
Privatization
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Jerusalem (JPFS) — The El Al
privatization program will begin
this year, and will form a central
plank of the Israeli government
companies' sell-off program, a se-
nior government source said.
This is despite the comment
from El Al's new managing di-
rector Yoel Feldschuh that he
cannot "see how privatization
can take place at this time." Mr.
Feldschuh predicted El Al loss-
es will reach $100 million this
year.
Moshe Leon, deputy director-
general at the Prime Minister's
Office with responsibility for pri-
vatization, said he would not re-
spond to Mr. Feldschuh's
remarks. "We are continuing
with our program," said Mr.
Leon.
Meanwhile, El Al spokesman
Nahman Kleiman said the air-
line would welcome an immedi-
ate announcement of a
privatization package. "Just look
at the companies that have al-
ready been-privatized. In Europe,
all the airlines that have become
independent are making profits,
but all the government-held com-
panies are still in debt."
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PAGEONE
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Free Trade
With India
Jerusalem (JPFS) — Israel is
ready to discuss a free trade
agreement with India to boost
business ties, Foreign Ministry
deputy director-general for
Asian and Pacific affairs Yitzhak
Shelef told journalists in New
Delhi.
"We are ready to negotiate a
free trade agreement with India
on the same level of pacts we
have with the United States,
Canada and the European
Union," said Mr. Shelef.
However, there are no formal
proposals to enter negotiations,
according to ministry sources in
Jerusalem and embassy officials
in New Delhi.
"I was very surprised to hear
this [comment]," said one min-
istry official. "However, this could
well be a plan for the future."
The issue of tariff reduction
between the countries was first
discussed in the framework of
the initial meeting of the Indo-
Israel Joint Trade and Econom-
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duce tariffs in a free trade agree-
ment or without it."
Trade between India and Is-
rael stood at $600 million in
1995, with Israel's export share
at $350 million.
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