Israeli flag-carrier El Al has temporarily halted plans to establish a joint tourism company, owing to circumstances including the Gaza conflict.

The airline had disclosed last year that it was entering a pact with travel company Issta to establish a tourism and holiday joint venture.

But El Al states, in parallel with its first-quarter results, that the two sides have decided to let the agreement expire on 29 May.

El Al 787-c-El Al

Source: El Al

El Al entered an agreement last year to set up a joint tourism company with Issta

The carrier states that this is due to “non-fulfilment” of conditions necessary for it to enter force.

It points out that the decision has also been influenced by the continuing Israeli-Gaza conflict, which began in October last year.

This has resulted in “security and economic uncertainty” in the country, particularly within the tourism sector.

“[We will] examine the timing of [the effort] to enter the field of tourism,” says El Al, adding that this will depend on the conflict situation.

El Al would have taken a 60% share of the venture with Issta holding the balance.