EL AL Israel Airlines Ltd.

Corporate Social
Responsibility Report
2014-2015

1
This document was composed by EL AL Israel Airlines Ltd. (“the Company”) solely for the purpose of presenting the
subject of corporate social responsibility (CSR) in relation to its own operation as well as the operations of its subsidiaries.

This is the third report to be published by the Company on CSR issues, and naturally does not exhaust the entirely of
issues addressed by the Company.

The report includes several issues that the Company chose to emphasize, but the inclusion of any specific detail
in this report or the exclusion of others do not indicate whether such details are essential or inessential, and do not
suffice as any kind of representation on behalf of the Company with regard to the entirety of its operations. It should
be emphasized that the report is based on business data pertinent to Company operations, and this data cannot
substitute any data published in financial reports by the Company and/or its subsidiaries. Accordingly, with regard
to financial data or data concerning volume of operations, profitability, forecasting and so forth, only data detailed
in financial reports are binding, and in any case of contradiction, data detailed in financial reports shall supersede.
This document does not constitute a representation or explicit or implicit undertaking, and the accuracy, integrity or
verity of the information or any opinions included herein are not to be based upon. Neither the Company nor any of its
employees or representative will be held liable (whether due to negligence or any other reason) to any loss ensuing in
any way from the use of this document or its content or any other manner concerning this document. Future reports
of Company operations and the outcomes of Company operations are subject to risk and uncertainty, which may lead
to substantial change in actual results in comparison with anticipated outcomes. Therefore, the content of this report
is not to be relied upon for future projections.
G4-1
Message from the President & CEO
Mr. David Maimon
Dear readers,
We are happy to present EL AL’s Corporate Social Responsibility (CSR) Report
for the years 2014-2015, in line with the world’s leading airlines. This is the
third report published by the Company concerning its social and environmental
impacts and performance. We consider this to be a testimony of EL AL’s
continued commitment for the advancement of our corporate responsibility, for
the benefit of all of our stakeholders, in Israel and around the world – customers,
employees, suppliers, investors, the community, our environment and the Israeli
public. The advancement of CSR at EL AL, among other things, solidifies our
strength as a business enterprise, enhances transparency, integrates new
management approaches, generates a more fair, considerate, productive and
pleasant working environment for our employees, improves the discourse with
our stakeholders and develops our activity for the benefit of the community and
the environment.
EL AL is facing considerable challenges, and is further affected in its activity
by global trends, such as the intensifying competition in the aviation sector,
fluctuations in fuel prices, growth of metropolises and commerce centers that
constitute new flights destinations, development of new business models in the
sector, the establishment of low-cost airlines and so forth. In the years 2014-
2015 we have continued working to respond to these and other challenges, and
constantly explored new ways of offering our passengers and customers the
best product and service, as adapted to their needs as possible. During these
years we have delivered several significant tidings to the Israeli aviation sector:
• We ratified the largest equipping plan the Company had known since its
establishment. In the framework of this plan, 16 new 787 Dreamliner aircraft,
of the leading passenger airliners in the world, equipped with the finest
aviation technology, will be added to our fleet;
• We launched the “UP” brand, which operates low-cost flights to a variety of
attractive destinations.
• We initiated the “Cockpit” program, an incubator for startups from Israel and
around the world that develop aviation- and tourism-related groundbreaking
technologies and innovative initiatives. The Cockpit program is in keeping
with the Company’s perception of innovation, and has made us very proud
by winning the APEX Awards.
The advancement of socially responsible
corporate conduct (CSR) solidifies our
strength as a business enterprise, enhances
transparency and integrates new management
approaches, generates a more fair, considerate,
productive and pleasant working environment for
our employees
These all emanate first and foremost from our commitment to our passengers
and their safety, and to providing them with a special service experience. We will
continue our effort to ensure we uphold this commitment in the coming years.
Another commitment to which we attribute great importance, since EL AL was
founded, is our commitment to Israeli society and the State of Israel; it embodies
the sense of being Israeli and our national responsibility. We are proud of our
philanthropy policy, with contributions that annually assist community and social
nonprofit organizations, whose activities impact the lives of many Israelis.
Additionally, we partake in a variety of social initiatives and work together with
nonprofit associations and organizations on many issues: education, health,
welfare, support of IDF soldiers in the framework of “Ametz Lochem – Adopt a
Fighter”, Israeli public diplomacy abroad by the “EL AL Ambassadors” project
and more. We consider this to be a national mission and intend to continue this
conduct in the future. Our national responsibility was further expressed during
Operation “Protective Edge”, when our flight schedule was enhanced to respond
to the needs of Israelis locally and abroad.

EL AL had defined additional objectives for itself, aiming to maintain its standing
as Israel’s leading airline. We can improve further and we keep on going, not
stopping for a minute. I am full of appreciation for the Company’s employees and
managers, and their devotion to any task they are assigned.

To the people of EL AL, you are the real engine of each and every one of our
aircraft, and this is an opportunity to thank you for your dedication and your
outstanding work. Together we will lead on to new destinations.

David Maimon | President & CEO

Message from the Director of Corporate
Responsibility & Community Relations
Mr. Zvika Segal
We are pleased to present the third Corporate Social Responsibility Report to be collection, analysis, processing and presentation of data, in a manner that will
published by EL AL. provide stakeholders with a comprehensive, balanced and reliable picture, for
which we are grateful.
We have no doubt that over the past six years the Company has made a quantum
leap on this issue, more and more stakeholders are joining the effort and assisting We hope that this report reflects our work on the issue as well as the improvements
in its advancement; however, we are aware that we have much more work to do that we are experiencing in this work from year to year.
and progress to be achieved on this important subject.

In this report, among other things, we have also elaborated on reporting by the
group’s subsidiaries. Zvika Segal | Director of Corporate Responsibility
& Community Relations
We are continuing our activity on the issue of employment diversity and deepening
our work for the community, as is expressed in the report presented before you.
We have also incorporated links to short videos in this document, from which you
can get an additional sense of company activities.

As is well known, EL AL is a global company, operating in dozens of locations

around the world, therefore this report is being translated to English and will be
distributed abroad.

We are delighted that this report was written in accordance with GRI G4 guidelines,
which positions us in a respectful stance along with many leading companies in the
Israeli market.

Good Vision - CSR Consulting Firm, of the Fahn Kanne & Co. Grant Thornton
Group, continues to accompany us on CSR issues, and had also assisted in the
Message from the CEO of Maala
Momo Mahadav
This report by EL AL is being published in proximity to the First International CSR
Conference to be held in Israel. Following two decades of activity on the issue,
we invited the global arena to get an impression of the Israeli experience.

Israeli corporate responsibility is characterized by creativity and innovation,

alertness and dynamism, focus on social challenges and caring. In recent
years we see significant growth and development of the issue in Israel, also in
comparison to the global arena.

EL AL, one of the companies most identified with the State of Israel, reflects in
its report how these characteristics are implemented in practice. Particularly eye
catching are the stories of the relief aircraft following the Nepal earthquake; the
EL AL Ambassadors program – aircrew members who volunteer to represent
Israel abroad; air transport of sick children and so forth. No less important are
the steps taken to increase employment diversity within EL AL, in a manner that
is significant to the employees being hired, but also, in a company that is “not just
an airline. It’s Israel”, represents the entirety of the country’s faces and identities.

Even in the context of more challenging years for the aviation sector economically
and certainly during better years, EL AL is operating diligently and is highly
commitment, for which we convey our congratulations.

Momo Mahadav | CEO of Maala - Business for Social Responsibility

1. National Carrier – Corporate Profile 8
About EL AL 9
Material Aspects 21
Dialog with Our Stakeholders 22

2. EL AL and Beyond – EL AL for the Community 25

3. Taking off with EL AL 39

Our Passengers 40
Innovation at EL AL 55
Procurement and Supply Chain 56

4. Home in the World – The People of EL AL 60

5. Our Environmental Responsibility 81

6. Our Chosen Route 90

Corporate Governance 91
Ethics 97

7. Our Subsidiaries 99
Tamam 100
Sun d'or 105
Katit 107

8. About This Report and Content Index 108

1 National Carrier
Corporate Profile

8
 About EL AL passengers, EL AL is more than an airline transporting passengers from one
point on the globe to another – EL AL is home.
EL AL Israel Airlines Ltd. was incorporated in November 1948, initially named EL
G4-3
AL Israel National Airlines Ltd., and in May 1951 was renamed to its current name. Company Locations G4-5

G4 EL AL was established as Israel’s national airline, and became a prestigious
DMA
and unique international airline, serving a variety of customers – both private
G4 and business, from all around the world. The main activity of the Company
EC4
is air transport of passengers and cargo (including mail and baggage) to 34
direct destinations, by means of passenger aircraft and cargo aircraft. EL AL’s
passenger aircraft mainly operate scheduled flights as well as charter flights.
Additionally, together with and via the operation of other companies in the Group,
EL AL provides services related to its air transport activities, such as: the sale of
duty-free products, production and supply of food for flights, provision of security
The Company’s headquarters are located at Ben Gurion (BGN) Airport in Lod.
The head office houses the Company’s main functions, including financial
management, human resources, acquisitions, legal department, computing,
security, maintenance and engineering, sales, customer service, marketing and
advertising, air operations and land and housing.
The Israel branch offices are located in the city of Or Yehuda, and the sales
offices are in Jerusalem, Tel Aviv and Be’er Sheva.
EL AL Activities Abroad G4-6

services, provision of ongoing maintenance services and overall maintenance to

EL AL has 28 representation offices around the world. The largest are in New
other airlines’ aircraft at Ben Gurion (BGN) Airport and the management of travel
York, Paris, London and Moscow. Additionally, there are countries to which EL
agencies abroad.
AL does not fly directly, but the Company maintains offices of representations in
The guidelines directing our activity are them (such as Brazil and Argentina).
productivity, efficiency, accuracy and
professionalism, and thus we ensure response
to the demands of our passengers
at any time and place.
As an Israeli airline, we consider ourselves committed to the development of
the local economy, including by our continuous growth and yielding of greater
economic value; to assisting the citizens and residents of the State of Israel
wherever possible; and to raising the national flag with pride wherever we go.
By means of an extensive global coverage, supported by an international network
of dozens of sales offices, and through the unique warm service provided to our

9
G4-4
Services Provided by EL AL
Passenger Transport
G4-8
The main services we provide in this activity include the transport of passengers and
cargo to different destinations by means of passenger aircraft. Company revenues
in this segment constituted approximately 90.8% of total revenues in 2015.
EL AL operates flights on passenger aircraft to 34 direct destinations in Europe,
North America, the Far East and Central Asia and other destinations. In 2014 we
had operated 257 weekly flights in each direction on average, and in 2015 an
average of 268 weekly flights in each direction.
EL AL markets passenger flights also in the framework of Interline Agreements.
These agreements with other airlines enable passengers of scheduled flights
(subject to certain restrictions), to use flight tickets issued by one airline for
another airline’s flights. Furthermore, EL AL operates codeshare flights in
cooperation with airlines around the world. Code-sharing allows an air carrier
to market flights by another carrier as if they were its own, so that a passenger
books a flight through one carrier, notwithstanding the fact that the passenger
in fact travels with another air carrier. Code sharing enables us to increase flight television series, broadcast and print magazines as well as a sales service of
frequencies offered to our customers and access additional destinations as well duty-free items.
as providing marketing advantages, including enhancing the attractiveness of
Starting from the 2014 Spring/Summer Season schedule, we have also been
joining the Company’s “Matmid” Frequent Flyer Club.
operating low-cost flights under the new “UP” brand to a number of European
On our passenger aircraft on scheduled passenger flights, we operate up to five destinations. These flights offer two travel service classes: Economy Class and
travel service classes – First Class, Enhanced Business Class, Business Class, Economy Class Plus.
Economy Class Plus and Economy Class. Classes are distinguished from each
In addition to scheduled flights, EL AL markets charter flights through its subsidiary
other by type of seat, the space between seats, the food and beverage menus,
Sun D’Or.
manner of serving, supply of comfort and leisure products and the ratio between
the number of flight attendants to the number of passengers. On scheduled The vast majority of the Company’s flight tickets are sold through travel agents
flights we offer our customers a set of in-flight voice programs, movies, popular and vacation package dealers, as well as through the Company’s sales offices

10
and through telephone and internet online direct sales, to institutions and Cargo Transport
individuals. EL AL has three sales offices in Israel (Tel Aviv, Jerusalem and Be’er-
In terms of commercial activity, we offer cargo transport services using a
Sheva) and about 29 sales offices in 21 representations abroad. Additionally, we
designated cargo aircraft as well as the passenger aircraft, in the routes between
sell flight tickets via 58 General Sales Agents (GSA) abroad (including direct and
Israel and North America, Europe, the Far East and Central Asia.
indirect destinations).
Furthermore, our cargo aircraft also transports cargo from one country to another,
The Company’s flights are supported by an alignment of ground services
without passing via Israel, and operates cargo charter flights.
that manages the process of boarding passengers and their luggage, their
disembarking at the airport of destination and unloading luggage as well as The majority of Company sales in the segment of transport by cargo carrying
handling cargo. Ground services are provided at BGN Airport and in each of the aircraft are made to cargo agents. In 2015, sales to cargo agents were 89%
destinations in which our aircraft land. At the same time, the Company operates, of sales in the segment, and the remaining sales were made directly to final
under the guidance of government security agencies, a deployment of ground customers who are not cargo agents. Revenues from this segment of activity
security in all overseas airports in which aircraft of Israeli airlines land, and an constituted about 3.5% of total Company revenues in 2015.
aerial security system that operates during passenger flights operated by Israeli
Aircraft Traffic in the Company’s Cargo Aircraft, by Region (Ton)
airlines (the BGN Airport ground security system is operated by the Israel Airports for Year Ending December 31
Authority – IAA).
In this sector of our operations we use 43 passenger aircraft, all of which were To and from destination 2013 2014 2015
manufactured by Boeing1.
Israel / Europe 32,749 32,071 33,389
The extensive and diverse range of our flights, alongside a wide distribution
system in Israel and around the world, attractive customer clubs, high level
Israel / USA 5,120 6,305 7,126
of safety and security, schedule stability and adaptation of services to market
needs and the range of cooperation agreements with other airlines – all these
Israel / Far East and Central Asia 32 79 71
support us in addressing the competition in the aviation market and make us
Israel’s leading airline.
Total 37,901 38,455 40,586

We occasionally consider the possibility of operating flights to new destinations

as well as reinforcing the frequency to existing destinations, in accordance with
market demands.
1 Of which 14 are leased, and 29 are owned by the Company.

11
 Athens Munich
2 Hrs 20 mins 4 Hrs 5 mins
Paris Bangkok
Sofia Warsaw 5 Hrs 10 Hrs 35 mins
2 Hrs 45 mins 4 Hrs 5 mins
Geneva Amsterdam Hong Kong
Bucharest Moscow 4 Hrs 25 mins 5 Hrs 10 Hrs 45 mins
2 Hrs 55 mins 4 Hrs 10 mins
Marseille Madrid New York
Kiev Prague 4 Hrs 35 mins 5 Hrs 20 mins 11 Hrs 45 mins
3 Hrs 35 mins 4 Hrs 10 mins
Zurich London Newark
Budapest Venice
Our 3 Hrs 35 mins 4 Hrs 10 mins
4 Hrs 35 mins 5 Hrs 25 mins 11 Hrs 45 mins

Barcelona Mumbai Boston

Destinations Vienna Berlin 4 Hrs 40 mins 7 Hrs 40 mins 12 Hrs 15 mins
and Flight 3 Hrs 40 mins
Rome
4 Hrs 10 mins
Milan
Brussels Johannesburg Toronto
Duration 3 Hrs 40 mins 4 Hrs 25 mins
4 Hrs 45 mins 9 Hrs 12 Hrs 40 mins
Frankfurt Beijing Los Angeles
4 Hrs 45 mins 9 Hrs 30 mins 15 Hrs 30 mins
An external survey by the “Passport” Group - Israeli tourism and aviation
magazine, conducted among 1,100 participants, determined that EL AL is the
best airline on routes between Israel and North America, Western and Eastern
Europe. In second place, our “UP” brand was chosen as the leading low-cost
airline flying to and from Israel. The Company operates scheduled cargo flights to Europe (Liège) and N. America (New York)

12
G4-7 Ownership and Legal Structure
During most years of its operation, EL AL had served as Israel’s National Airline
and was under State ownership. In the beginning of the previous decade
(2000s), the government of Israel took steps to privatize the Company, and its
shares were offered to the public. At the time of publication of this report, the
main shareholders are Knafaim Holdings Ltd., the public, Ginsburg Group, Delek
Group and Altshuler Shaham Group2.
The State of Israel holds 1.1% of the share capital issued, therefore the Company
is considered to be a “Mixed Company”3. Furthermore, the State holds a Special
State Share4.

Distribution of Holdings of Company Shares as of December 31, 2015

36.3% Knafaim
9.98% Ginsburg Group

43.57% Public 5.04% Delek Group

5.11% Altshuler Shaham Group

EL AL’s Organizational Structure G4-9

The Company’s day to day management is steered by the CEO and assisted by
the management team, who together constitute the Company’s headquarters.
2 In January 2016, Altshuler Shaham Group became an interested party of the Company, by power of its holdings. In accordance The team is comprised of the Chief Finance Officer, Chief Maintenance and
with the Articles of Association of the Company, a holding of 5% or more of the issued share capital of the Company is subject
to the approval of the State in its capacity as holder of the Special State Share. As of the date of this report, the State approval Engineering Officer, Chief Trade and Aviation Relations Officer, Chief Human
for Altshuler Shaham Group’s holdings of the Company’s shares as aforementioned has not yet been received
3 Article 1 of the Governmental Companies Law states that a mixed company is “A company which is not a governmental
Resources and Administration Officer, Chief Customers and Service Officer,
company and which half or less of the voting power in its general meetings or the right to appoint half or less of its directors are Chief Operations Officer, Chief Computing Officer, Legal Counsel and the
in the hands of the State”
4 The rights granted to the holder of the Special State Share are detailed in the Company’s Articles of Association, which further Company’s Auditor.
details the State’s essential interests in the Company that must be protected by means of the Special State Share. For details
regarding these issues, see the Company’s 2013 periodic report.

13
 Board of Directors
Organizational Structure as of December 31, 2015
President & CEO
Chieft Audit Executive General Counsel Corporate Secretary

Operation Customers HR & Admin. Finance Commerce & Maintenance I.T

& Service Industry Affairs & Engineering

Strategy Planning
*Safety & Operations Israel & Business Human Revenue Information
Quality Control Station Resources Controller's Management A/C Overhaul Systems
Development
Business Training &
Flight In-Flight Development & Organizational Economics & Workshops IT Infrastructure
*Security Operations Services Budget Pax Marketing & Logistics & Comm.
Fleet Strategy Development

Cargo Customers Planning & Procurement International A/C

Service & Sales Organization & Supply Affairs Maintenance

Company Commercial
UP Planning & Engineering
Treasurer Distribution Sys

Dreamliner Branches, Quality

Project Asia & Oceania Control

Frequent Israel Program

Flier Club Branch Management

* Head of Security Department and Head of Safety and Quality Department are subject to
the CEO and coordinated by the Chief Operations Officer.

14
G4-9 Company Performance
G4
The data below, taken from our Annual Reports, reflects the Company’s economic
EC1 performance in the years 2014-2015 (in thousands of US Dollars):

Revenues by Geographical Segments (in thousands of US Dollars):

2014 2015
North East and Rest of
)Operating revenues (sales 2,081,303 2,054,041 America Europe Central Asia the World Total

Operating expenses )1,802,661( )1,592,844(

2015
Revenues attributed
to regions 693,542 942,390 337,368 31,474 2,004,774
Payroll and benefits 348,220 351,397 Revenues not attributed
to regions 49,267
Total revenues in the
Gross profit 278,642 461,197 consolidated report 2,054,041

Dividends paid - )24,740( 2014

Revenues attributed
to regions 680,399 973,994 342,539 33,536 2,030,468
Net profit for the year )28,060( 106,534 Revenues not attributed
to regions 50,835
Total assets 1,581,620 1,664,149 Total revenues in the
consolidated report 2,081,303

Total liabilities 1,470,185 1,469,367

Equity 111,435 194,782

Arrival of a 737-900
Total profit (loss) for the year )72,064( 108,087

One of our new 737-900 aircraft lands

at BGN Airport | Sivan Farag

15
G4
EC4
State Funding
EL AL’s strict security arrangements are determined for the Company, as they
are for all Israeli airlines, by State authorities, which also bear most of the
expenditure burden.
The following table details direct costs related to the security of Company
passengers, aircraft and employees, while distinguishing between the share of
the costs financed by the Company and the share financed by the State (in
thousands of US Dollars):
The Dreamliner is considered to be one of the most advanced passenger
State financing Company financing Total airliners in the world, and has broken the speed and distance records for aircraft
of its size. In doing so, the Dreamliner proves it has the ability to transform the
2014 127,470 3,486 130,956 world of aviation. The new 787 aircraft offers many advantages, not merely for
the operating airlines that benefit from its fuel efficiency, but also for passengers
2015 129,216 3,208 132,424 who enjoy its unique internal design, better air quality and great comfort.

Other than this exception ,the Company receives no special tax breaks or State
benefits ,albeit it does have accumulated losses accounted for tax purposes.

The EL AL Dreamliner

Geopolitical Impacts
EL AL and the aviation sector in Israel in general are influenced by Israel’s
geopolitical situation, which significantly impacts our ability to operate indirect
flights passing via Israel (flights from one country to another, with a layover in
Israel), while other airlines tend to enhance such flights. Political or defense-
related events that generate security uncertainty influence passenger traffic.
Thus, for instance, during Operation “Protective Edge” (“Tzuk Eitan”) in the
summer of 2014, there was a significant decline in the number of bookings
and incoming tourism, as well as a slowdown in reservations by Israelis. This
tendency continued in the first half of 2015 as well, with a backdrop of security
events in Israel. Additionally, during Operation “Protective Edge” a number
of foreign airlines had suspended their flights to Israel, while EL AL strove to
reinforce its flight offerings, aiming to compensate for the resulting shortage of
flights to some destinations.

16
G4-13 Primary Changes During Reported Years
“Open Skies” Agreement
The “Open Skies” Agreement, signed in 2012 between the State of Israel and
countries of the European Union and additional countries, encourages and
enhances the movement of tourism to and from Israel by means of enhancing
competition between the airlines. Consumers can now choose between a greater
variety of destinations, flights and airlines at very affordable prices. As a result of
the agreement, foreign airlines have increased their activities on lines to and from
Israel. In light of the development tendency in the low-cost sector and impacts of
PLACE NEW IMAGE???
“Open Skies” on competition in the sector, we have established the “UP” brand.
Procurement Plan
In 2015 we finalized the largest aircraft procurement transaction in the history
of the Company, for the purchase and leasing of 787 (“Dreamliner”) Boeing
aircraft. Following the completion of the program, our wide-body aircraft fleet will
be supplemented by 16 “Dreamliner” aircraft – 7 owned by the Company and 9
leased. These aircraft would replace, over the duration of the next five years,
our fleet of 747-400 and 767 aircraft, and they are intended to fly to medium and
long haul destinations (New York, Boston, Toronto, Bangkok, Beijing, Mumbai,
Johannesburg and more).
Receipt of 737-900 aircraft Significant Role Changes in the Company
During 2015 we continued the process of receiving new Boeing 737-900ER During the first quarter of 2014, former President and CEO of the Company, Mr.
aircraft, whereas the fifth of eight aircraft purchased by the Company joined Eliezer Shkedi, ended his tenure, and Mr. David Maimon began his term as the
our fleet in March 2015. In early 2016 the additional three aircraft of this model Company’s President and CEO. Prior to his appointment Mr. Maimon served as
were delivered. These advanced aircraft have a 16 seat Business Class, and Vice President Commercial and Aviation Affairs.
the Economy Class was installed with thinner seats manufactured by novel
technology. On these aircraft, electrical outlets for laptops as well as USB
connections are installed.

17
 The structure of holdings
100% in the EL AL Group as of
Sun d’or December 31, 2015.

100%
Tamam

100%
Katit

100%
Superstar Holidays
(UK)

100%
G4-17
EL AL Holding Companies Borenstein Caterers
(USA)
EL AL holds, by varying holding degrees, a number of companies providing
services and products supplementary to its aerial transportation operations.
50%
Air Consolidators
These companies provide services supporting our own activities as well as
catering to other airlines. With these additional amenities we are able to provide 50%
our customers with an extensive and diverse package of services. Tour Air

20%
Holiday Lines

15%
Maman

18
Summary of Main Subsidiaries’ Business Activities
The EL AL Group includes a number of subsidiaries that support our activity
and provide us with complementary services – including the production and
supply of food, ongoing maintenance and comprehensive maintenance and the
management of travel agencies abroad. Our subsidiaries also provide services
to foreign airlines. The following companies are in full ownership of EL AL:
Sun D’Or International Airlines Ltd. Borenstein Caterers Inc. (USA)
EL AL Group’s charter operations are conducted through Sun D’Or. Sun D’Or The main business of Borenstein Caterers, a company registered in the USA
functions as a tour operator for wholesalers and individuals, and markets charter and operating at JFK airport in New York, is the production and supply of kosher
and scheduled flights, both by leasing full aircraft capacity to third parties, ready meals to airlines and other institutions. EL AL is Borenstein Caterer’s
or the capacity of partial aircraft to a number of partners for pre-negotiated principal customer. As of December 31, 2015, the Company had 100 employees.
prices, or by direct sales. Since 2011, Sun D’Or functions as a tour operator,
Superstar Holidays Limited (England)
while maintaining the “Sun D’Or” brand for scheduled and charter flights that
it markets and are operated by EL AL (on weekdays) and by other airlines (on Superstar Holidays is a tour wholesaler, marketing tourist package deals to travel
weekend and holiday flights). agents and passengers and selling flight tickets on EL AL routes at discounted
prices. Superstar Holidays, with its offices located in London, has become in
Tamam – Aircraft Food Industries (Ben Gurion Airport) Ltd.
recent years one of the largest tour operators in the UK and France for tourism
Tamam operates primarily to produce and supply kosher ready meals to airline to Israel. Superstar also operates in several other countries. As of December 31,
companies. Recently, Tamam expanded its non-aviation activities to include 2015, Superstar had 10 employees.
catering services to institutions. EL AL is Tamam’s principal customer.
Katit Ltd.
Katit’s main practice is the production and supply of meals for Company employees.

Additional information about the companies Sun D’Or, Tamam and Katit can be
found in a later chapter in this report.

19
Summary of Business Activities of Main Held Membership in International Organizations G4-16

Companies, Which are Not Subsidiaries EL AL is a member of international organizations in the aviation world, and its
Cargo Consolidation: Air Consolidators Israel Ltd. (ACI) representatives partake in these organizations’ committee activities:

ACI’s main business is the consolidation of air cargo at BGN Airport, enabling · International Air Transport Association – IATA
cost reduction for aerial delivery. Cargo transportation is carried out by EL AL at And its Operational Safety Audit program – IOSA
special rates, as well as through foreign airlines. The company has 20 employees · International Civil Aviation Organization – ICAO
and is located at the Maman terminal at BGN Airport.
· Flight Safety Foundation – FSF
Flight Marketing: Airtour (Israel) Ltd. (or “Tour Air”)
Currently Airtour mainly deals with the marketing of EL AL flights and special
offers to all our flight destinations. EL AL pays Airtour for the services it provides,
and also participates in some of its operating expenses. Airtour has 65 employees
and its offices are located in Tel Aviv-Yafo.
Touring and Hotels: Holiday Lines Ltd. (“Holiday Lines”)
Holiday Lines deals with marketing and sales of tourist services, including as
wholesaler and organizer of charter flights to and from Israel. Holiday Lines
marketing operations are conducted through travel agents, as well as by the
allocation of seats and tourist packages to end consumers.
Maman - Cargo Terminals and Handling Ltd. (“Maman”)
Maman’s main activity is the management and operation of a cargo terminal
authorized to handle all import and export cargo at Ben Gurion International
Airport, pursuant to authorization granted by the IAA. Additionally, Maman
operates logistical services and real estate rentals, and provides aviation services.
Maman operates in Israel, the Czech Republic and India. Maman is a public
Company, traded at the Tel Aviv Stock Exchange. Maman has approximately
2,440 employees.

20
G4-18
Material Aspects
We have identified Material Aspects for this report through a process that included: Material Aspects Identified and Selected for Reporting G4-19

 Identifying potential material aspects: At this stage a meeting was held with Reported Aspect Aspect Boundary (Chapter)
G4-20
the organization’s internal communication forum and department managers, Pages
as well as meetings with other relevant factors within the Company. In these
G4-21
meetings the participants raised topics that they consider to be core for the Economic performance The Company and its subsidiaries: (1) 9, 15
Company. Additionally, topics addressed by our previous reports were taken Tamam, San D'or and Katit (7) 100, 105,
into account. 107
 Identifying material aspects for our stakeholders: Based on interviews Contribution to the The Company and its subsidiaries: (2) 26 -38
and conversations, surveys, questionnaires and feedback forms that we community Tamam, San D'or and Katit (7) 103, 107
circulated in the process of composing this report, as well such that we send Developing the human The Company and its subsidiaries: (4) 69-73
to our stakeholders regularly. resource - Training Tamam, San D'or and Katit (7) 101, 105,
 Examining Material Aspects in G4-Standard CSR reports by leading and empowerment of 107
international airlines, as well as the list of Material Sustainability Topics listed employees and managers
in the Sustainability Accounting Standard (SASB Standard) for Airlines, Employee health & safety The Company (4) 77-78, 80
which aims to assist investors who are interested to invest in companies, in Employment diversity The Company and its subsidiaries: (4) 61, 63-64
their examination of social responsibility policies. and equal opportunities Tamam, San D'or and Katit (6) 91
 Review of media clippings about EL AL during 2014-2015. (7) 101,
105-107
Ultimately, the list of material aspects addressed by this report was formulated.
Employment The Company (4) 61, 64-65,
The list was presented in the Corporate Governance Committee meeting of the
and work environment 77-78
Company’s Directorate.
Employee rights & welfare The Company (4) 73-77
Service and customer The Company and its subsidiaries: (3) 40-41
satisfaction Tamam, San D'or and Katit (7) 41, 100
On-Time Performance The Company (3) 43

21
 Passenger health & safety The Company and its subsidiaries: (3) 44
Tamam and San D'or (7) 102
Reduction of greenhouse The Company and its subsidiaries: (5) 82,
gas emissions Tamam, San D'or and Katit 83-85
Stakeholder Manner of Conducting Dialog
Energy consumption – The Company and its subsidiaries: (5) 82, 86
electricity and fuel Tamam, San D'or and Katit Customer Surveys more than 10,000 customer survey
Water and sewage The Company and its subsidiaries: (5) 82, 86 questionnaires are received monthly, addressing 15 difference
Tamam, San D'or and Katit topics concerning services provided to customers. According
Waste management The Company and its subsidiaries: (5) 82, to need, we also conduct additional ad-hoc surveys.
San D'or and Katit 87-88 Proactive interaction with customers we initiate interactions
Corporate governance The Company (6) 91-96 with our customers as part of our own service assessments
Business ethics The Company (6) 97-98 and continuous strive for improvement, and also in response
to specific cases that require the Company’s attention.
Initiated meetings with customers fortnightly meetings are
G4-24
Dialog with Our Stakeholders Customers
held with luxury customers at the airport, as well as quarterly
customer meetings, attended by hundreds of our customers.
G4-25 Our activity impacts many people in Israel and around the world: we employ Focus groups to identify needs from time to time and
thousands of people locally and in other countries, engage with many suppliers according to need we hold meetings with customers to
G4-26 in Israel and globally, and our flights serve customers from all corners of the identify needs and adapt the services offered by EL AL to
earth. We therefore attribute great importance to maintaining continuous and its customers. This way, for instance, activities to define
G4-27 constant dialog and discourse with the factors which we identify to be our and characterize the future Dreamliner aircraft included
stakeholders, who are impacted by the activities of the Company, and naturally the participation of our luxury customers in the process of
also have impact on it. examining seats for the new airliners.
The dialog with our stakeholders improves us as a company, and helps us to Initiated inquiries Company customers also approach us of
adapt our services and our conduct with our stakeholders in accordance with their own volition in different ways, including via our website
needs arising from the field. or social media.

22
Stakeholder Manner of Conducting Dialog
A company-wide employee service survey is conducted
once a year and a service survey is undertaken quarterly by
the Human Resources and Administration Division.
Regular conversations are held with employees in different
Company units.
Employee conferences take place at least once annually.
Ongoing CEO meetings are held with representatives of
the different units.
Employee inquiries are send using the “Tafnit”
computerized system and the Company’s internal portal.
Internal communication with employees are conducted via
Employees the internal portal, through information screens positioned
throughout the company campus, by a periodic messages
from the CEO and the monthly organizational newsletter
sent to all Company employees in Israel and abroad.
An Employee Ombudsman is available, and employees
can address management via an anonymous email
account. Additionally, inquiries can be directed to the
Company’s internal auditor according to need.
Annual feedback meetings are held with Company
managers and employees.
Stakeholder Manner of Conducting Dialog
We maintain constant communication with our suppliers.
The Company’s Procurement and Supply Department
maintains contact with supplier through various media.
We conduct unique service workshops for taxi drivers
Suppliers servicing our aircrews.
From time to time we circulate supplier surveys.
A survey as mentioned was undertaken at the end of 2015,
responded to by 17 suppliers, in varying extents and means
of communication.
The Company’s Director of Corporate Responsibility &
Community Relations is responsible for the ongoing contact
with different nonprofits and social community organizations.
As will be expanded in section “EL AL for the Community”, we
conduct extensive activities with many social organizations,
Community and we are proud to take part in common and joint activities
and Social for the benefit of Israeli society.
Organizations
From time to time and according to need we circulate
questionnaires and feedback forms to nonprofits and
organizations in which our employees volunteer. These
questionnaires and forms are intended to better understand
the needs of these organizations.
23
 Stakeholder Manner of Conducting Dialog

As a public Company, the relationship with our investors

and their representatives is very important to us. We pay
heed to maintain constant discourse with them, and from
time to time hold conferences and investor meetings.
We held one such conference in September 2015 at the
Investors Tel Aviv Stock Exchange. The conference addressed the
Company’s strategic direction as well as the subject of the big
Dreamliner aircraft procurement plan. The conference was
a great success and we were happy to meet representatives
of financial bodies, leaders in the Israeli capital market,
investors, analysts and investment managers.
One of the conditions for the success of EL AL group
is maintaining constant and continuous business Investors’ conference at the Tel Aviv Stock Exchange

discourse with our subsidiaries.

Employees of our subsidiaries partake in various Company
Subsidiaries activities, including training workshops and seminars,
events and activities in the community.
In the framework of writing this report we held meetings
with the managements of subsidiaries Tamam, Katit and
San D’Or.
On issues directly pertinent and affecting our business activity, Dialoging with customers: Customers evening as part of Company dialog
Governmental seat selection for Dreamliner luxury classes.
EL AL also maintains discourse with regulatory factors,
Authorities
governmental authorities and their representatives.

24
2 EL AL and Beyond
EL AL for the Community

25
 EL AL for the Community
G4
DMA The Management Approach Social Investment Policy
G4 As a leading Israeli Company with genuine and unique affinity to the State of EL AL focuses its social investments on initiatives addressing education,
EC7
Israel and its values, we have been working for many years for the benefit of the entrepreneurship and innovation, fighting poverty, inclusion of people with
G4 community, Israeli society and Jewish communities around the world. disabilities and support of the IDF. Our social investment policy constitutes
EC8
a basis for a work plan that defines the fields and subjects of EL AL's social
Our motto in Hebrew is to be "most at home in the world" and such is our
G4 investment; the resources dedicated to the topic and policies to define them;
SO1 commitment; we consider it an obligation led by our morals and values to be an
the affinity between the Company's social investments and its business activity;
Israeli company that benefits the community within which it operates and Israeli
social partners for the realization of the policy; objectives and measures for
society as a whole. For many years now we have been privileged to initiate as well
success; and the procedures of rigor ensuring recipients of donations uphold
as support and partner with social initiatives that aim to minimize social disparities,
legal provisions.
fight poverty and promote and nurture vulnerable populations. Additionally, our
Israeli-ness is also expressed by our activity for the benefit of IDF soldiers and in
promoting Israeli public diplomacy in destinations reached by our flights.
Encouraging Employee Volunteerism
We encourage our managers and employees to volunteer and thus implement
Gestures made by EL AL strengthen our perception of the Company's narrative
personal and organizational values of partnership and cohesion. EL AL expects
as a national airline that is a partner in the advancement of Israeli society and
its managers and employees to volunteer, and encourages them to do so by
creates long term relationships with the community.
assisting them in locating a volunteering framework, making connections with
Our commitment to these was defined in the Company’s Community Policy volunteer institutions, facilitating training etc. The Company considers the creation
and is expressed by a number of foci and initiatives, in which we aspire to of dynamics that continuously broaden the circle of volunteers to be of importance,
make the most of our abilities and relative advantages, through our employees and expects its managers to exhibit personal examples in this regard.
volunteering and by financial or in-kind contributions – all these while basing long
As part of generating and encouraging an atmosphere of volunteerism in
term partnerships with community partners.
the Company, excelling volunteers among employees are recognized in the
Company's Annual Excellence Ceremony and appreciated for their activities.
Volunteering activity also constitutes one of the criteria in employees'
achievements weighted for receiving an Excelling Employee Award.

26
 During the years 2014-2015, there was an increase of about
55% in the number of Company people volunteering in one of
the varied projects the Company is involved with.
As of 2015, the percentage of volunteers – on a permanent and
one-time basis – was 7.36% of Company employees, some 420
employees who contributed more than 10,000 volunteer hours!
The average scope of permanent volunteer hours
per employee in 2015 was 29 hours, and the
average scope of average one-time volunteering
per employee was 5 hours.
During 2016 we intend to increase the percentage of volunteers among our
employees, as well as the scope of average volunteering hours per employee.
G4
EC7 GlobaLY
As part of our efforts to strengthen relationships with Jewish communities around
the world, we have been managing for several years a program dubbed GlobaLY –
a unique club membership card issued to Israel supporters in the diaspora. As part
of this program, EL AL donates flight points in support of four meaningful goals.
During 2015 we have donated in this framework –
121,934 points to fulfill the wishes of children with life endangering illnesses, in
cooperation with "Mishelet Lev - Make a Wish Israel".
27
121,934 points to fly young Jews from abroad to Israel for their initial introduction
to Israel, in cooperation with "Taglit – Birthright Israel".
124,850 points to fly lone soldiers to visit their families abroad, in cooperation
with "Ha'aguda Lema'an Hachayal – The Association for the Wellbeing of Israel's
Soldiers (AWIS)".
25,735 points as part of the CEO Community Fund.
G4
The donation of flight points is at the expense of EL AL only, and is granted quarterly. EC7
G4
Projects for IDF Soldiers EC8
Adopting Battalion 202 (Tzefa)
Since 2011, we have been adopting battalion 202 "Tzefa" of the paratrooper
regiment, in the framework of the "Adopt a Fighter" project by ""Ha'aguda Lema'an
Hachayal - The Association for the Wellbeing of Israel's Soldiers (AWIS)". The
project links companies and army battalions to be adopted, supported and
assisted in different ways. As an airline proudly displaying the national flag on its
fleet, we are proud of our partnership battalion 202, which participates daily in
the defense of the State of Israel, and we consider its soldiers to be part of our
EL AL family.
In addition to our fiscal donation, adoption of the battalion is expressed by:
• Preparation workshops for soldiers about to be discharged from the army
held 3 times during the year, and include an employment fair presenting
different positions at EL AL, in which discharged soldiers could be integrated.
• Inviting families of officers and NCOs to events held by the Company for
families its employees.
• During 2015, we have temporarily employed 35 soldiers in economic
hardship, who were entitled to army leave due to special circumstance,
during which they are permitted to work.
• Joint events for Company employees and managers with soldiers and
officers of the battalion – mutual hosting, shared meals etc.
• Special meals in the field for battalion soldiers during training and battalion
activities – another opportunity for a warm hug.
• Together with our subsidiary "Katit", in 2015 we arrived at the battalion's final
evening of training before it leaves for deployment by the Gaza Strip boarder.
During the evening, Katit personnel and members of the flight attendants'
Steering Committee treated the soldiers and officers to an affluent dinner,
which included an appreciation ceremony for excelling soldiers and a
summary of their training period by the Paratrooper Brigade Commander
and the Battalion Commander.
• In the Company's Annual Excellence Award Ceremonies, in addition to
employees, excelling soldiers of the battalion and its units are also recognized
by the CEO.
Our cooperation with the battalion has deepened over the years. The people
of EL AL, both managers and employees, are attentive to the needs of Tzefa
battalion's combatants and are available for their every request.
Wounded Soldiers and Disabled Veterans - A Moving Post-Army-Discharge Trip
In 2015 we partnered for the first time with the touching flagship project of the
Friends of the IDF Disabled Veterans Association – "Discharge Trip", aiming to
provide wounded IDF soldiers with a unique opportunity to complete the Israeli
experience that has become a tradition for soldiers finishing their army service.
Twenty wounded soldiers, injured during Operation "Protective Edge" and
previous Israeli army operations (Cast Led, Defensive Shield etc.) departed on
the "army discharge trip" and headed toward magical India. For 14 days, the
injured veterans dealt with complex physical and mental challenges, which will
help them in the future through their personal rehabilitation journeys.
The joint process with EL AL employees included a long preparation; construction
of a joint communication plan; a touching meeting of our team of flight attendants
and pilots at Beit Halochem in Tel Aviv; and peaked at the "Discharge Party"
event at the King David Lounge at BGN Airport, with the participation of injured
soldiers and their families, the Company's management headed by the CEO,
Chair of the Friends' Association, CEO of the IDF Disabled Veterans Association
and personnel and crew of the trip.
28
 The "Discharge Trip" project is an additional layer of the strong bond between EL
AL and IDF soldiers. We are happy to be part of this special project and to enable
the wounded to find closure, go on their post-army-discharge trip and open
themselves up to new experiences and opportunities. We intend to continue this
project into 2016 as well.
EL AL aid flight returning home from Nepal

IDF wounded soldiers and veterans with disabilities in a

moving meeting with the EL AL aircrew flying them to India

G4
EC7 A Flight that is a Mission – to Nepal and Back
The landing in Israel of 250 Israelis who had experienced the horror of the tragic
earthquake that shook Nepal in April 2015, concluded a flash operation by EL
AL that will be remembered as one of the most moving flights piloted by the
Company in years. The 747 that delivered the delegation of Israel's Homefront
Command to Kathmandu, departed back to Israel carrying special cargo: two-
week old babies and their young parents and grandparents, who were extracted
from the disaster-stricken country.
Returning home – landing of the flight from Nepal at BGN Airport | Sivan Farag

The earthquake that hit Nepal had devastatingly damaged hospital infrastructure
and caused harsh sanitary conditions for the newborns, who arrived following
a complex surrogacy process, some of them prematurely born. An immediate
need arose to bring them to Israel and to continue their medical treatment, and
naturally EL AL volunteered for the mission.
For EL AL's crew members, who have been active for 82 straight hours, this
was an unusual experience. Our crew made extraordinary efforts to ease the
passengers' journey home, and the feedback received from them upon landing
was especially touching.

29
G4
EC8
"Small Change Makes a Big Difference" Project ALEH
As part of this fundraising operation, in collaboration with Bank Hapoalim, EL AL EL AL flight attendants occasionally conduct volunteering activities at Nahalat Eran
passengers receive envelopes in which they are invited to donate "small change" – ALEH's Negev rehabilitation village for children and adults with severe disabilities
in Israeli or foreign currency. The money contributed is transferred on behalf of
the passengers to "ALEH – Care for Children with Disabilities" and "ALUT –
Israeli Society for Autistic Children". Additionally, a number of young adults with
autism are employed in the process of sorting the change, thus receiving an
employment framework and monetary income.
EL AL employees work on this project with much love, benevolence, care and sense
of mission. Beyond the desire to operate the project in a smooth and professional
manner, many of them also offer additional ways to improve it… It is exciting to
meet so many people from our national airline whose touch in this project is a The bicycle ride continues – bike ride to Nahalat Eran 2015 | Sharon Ohad
touch of love." Rachel Rosenman, ALUT Resource Development Manager
A group of Company employees participates every year in a bicycle ride to Eilat.
On our flight attendants course we hold a meeting with a parent of an ALUT or ALEH
In 2015 the trip was dedicated to ALEH. The cyclists group was comprised of
child, in order to make a connection between our flight attendants and this project.
35 riders, men and women, from all Company divisions. On the second day of
the ride, the group arrived at Nahalat Eran. Our bicyclists met with the village
During 2015, total donations collected in this project amounted to
manager and conducted a tour and a ride with a few of the village children.
Members of the flight attendants' Steering Committee also joined the visit.

ILS
Before Passover Eve this year, we distributed Haggadot as a gift to passengers
on flights departing from Tel Aviv and New York. It was a unique Haggadah,
illustrated by ALUT children with autism, dedicated as a holiday gift for EL
AL passengers, in appreciation of their contribution during the many years of
partnership in the "Small Change Makes a Big Difference" project.
"EL AL Ambassadors"
The "EL AL Ambassadors" program has been
active for 5 years in collaboration with the
Jewish Agency, Israel's Foreign Ministry and
the public education nonprofit StandWithUs. As
part of this program, our aircrew personnel –
pilots and flight attendants – meet with students
in universities, local Jewish communities and

30
various organizations to talk about their lives in Israel, their families, their choice
to live in Israel and their personal visions for the future of Israeli society. In doing
so, our employees take an active part in representation, information, marketing
and the improvement of Israel's image in the world.
For this project, flight attendants and pilots with language and rhetoric skills were
selected, who wish to present Israel's beautiful and positive facets. The participants
underwent an intensive training program by the project's partner organizations.
All activity in this framework is conducted entirely voluntarily by the pilots and
attendants, at the expense of their free time while abroad.
Since it was launched, about 250 aircrew personnel have been trained as part of
this project, speakers of English, French, Russian, Amharic, Spanish, Chinese,
Turkish and even Yiddish. During 2015, project participants held more than 90
public information events, and in total since the project had started until the end
of 2015 – more than 350 events were conducted to audiences totaling tens of
thousands of people in the USA, London, Paris, Hong Kong, India, China and
other locations.
To mark 350 information events held around the world, toward the end of 2015
an event was held at the home of Israel's General Consul in New York, Mr. Ido
Aharoni, during which the managements of the Company and the Ambassadors
program were presented with a special token of recognition from leaders of
EL AL Ambassadors receiving tribute by Israel's Consul General in New York, Mr. Ido Aharoni | EL AL New York
Jewish and pro-Israel organizations in New York.
At EL AL we take pride in this pioneering Israeli initiative, and in our people who
volunteer continuously. We congratulate all of our ambassadors for their activity,
presenting the beautiful side of Israeli society in general and EL AL in particular,
and their devotion to reinforcing the deployment of Israeli public diplomacy.

31
Proud to Be Israeli - Israel's 66th Independence
Day Aerial Demonstration
In 2015 we participated for the first time in the aerial demonstration on the
occasion of Israel's 66th Independence Day, together with the Israeli air force.
Our pilots were excited to fly over Israel's beaches, above Jerusalem, and to
land back safely at BGN Airport.
Our aircraft in the sky above 66-year independent Israel | EL AL PR

EL AL Independence Day Aerial Demonstration

32
"Young Entrepreneurs" Project
The collaboration between EL AL and the "Young Entrepreneurs" Project, which
encourages teenagers to develop independent thinking and economic action,
intends to nurture business entrepreneurship among them. Since its foundation
in 2006, the project has become a tradition for both organizations. As part of
this collaboration, representatives from dozens of "young entrepreneurs" groups
visit our campus, the workshops, the training center and control center and learn
about company activity.
Students from the local school in Kiryat Haim receiving the trophy from the Company's CEO | Uri Yaloz
In both organizations' perception, the collaboration enables young entrepreneurs
to examine closely how a large business operates in the Israeli market, how to
identify business opportunities, what is responsibility, what constitutes good service
and the importance of contribution to the community. The feedback received from
students, instructors and teams of young entrepreneurs indicates a significant,
enjoyable and contributive experience, and they all express appreciation for the
extraordinary dedication demonstrated by the people of EL AL.
Every year, ten select groups participate in the "Young Entrepreneurs Fly EL AL"
competition, which is held in the Company campus. The event includes colorful
33
display stands and presentations by competitors of their products to a panel of
judges and answering their questions. Our employees visit the stands and select
their favorite team. In 2015, the Kiryat Hayim Comprehensive Municipal High
School won first prize for the application they had developed, intended to prevent
the use of mobile phones while driving.
"Larger than Life" G4
EC7
For close to a decade, we have been assisting the "Larger than
Life" nonprofit organization to take groups of children on their dream
trip. The project supports children coping with cancer and their families who fly
with them, as they take time off their treatments and associated hardships, and
provides them with an opportunity to enjoy themselves as only children can.
Additionally, EL AL employees help the children through the check-in and baggage
drop process and escort them on their flights and during their stays in the USA.
We also partake in operating the organization's "Smile Train" on Purim – a festive
happening intended for the children and their families, as well as additional
events and projects.
"Orr Shalom" G4
EC7
The cooperation with "Orr Shalom", an organization treating children
at risk from across the Israeli social spectrum according to a well-
established treatment philosophy, was planned back in 2010. Once a week, a
group of EL AL flight attendants arrive at an Orr Shalom family house and conduct
enriching, recreational, playful and fun activities for the children. It can certainly
be stated today that this connection has become a real asset for parents, staff
and, of course, the children, for whom the volunteers constitute true role models.
Every Purim holiday, EL AL volunteers help the organization by sales of
Mishloach Manot (traditional Purim food gift package) with all revenues intended
to benefit children's houses and activities. The volunteers operate sale stands at
the Company campus, resulting in the collection of tens of thousands of Shekels
that contributed greatly to the success and continuity of the project.
In the last two years we have been working together with the organization on a
new volunteering project at the Goldschmidt Home for Girls at Mevaseret Zion,
led by the flight attendants' Steering Committee. This year the committee held a
Bat Mitva event for the girls, in cooperation with aircrew volunteers and soldiers
from our adopted 202 battalion.
"Teaching Together"
As part of the "Teaching Together" project, EL AL employees volunteer as
teaching auxiliaries, who spend time with teachers in classrooms, assist them
in their work, contribute from their own experiences, provide additional tools for
students and present an additional role model in the classroom. At the same time,
volunteers are exposed to teaching and education from the teacher's perspective,
gain recognition of the complexity of the position, become ambassadors on the
teachers' behalf and might even assist in relieving tensions that sometimes arise
between parents and teachers.
"It is a great pleasure to see the children learning
and evolving from one meeting to the next, and
especially to see them working meticulously
on a long term project with enthusiasm that
accompanies them throughout the meetings".
Tania Lanziner, Flight Service Manager, volunteers at HaNisui School in Jerusalem, 2nd & 3rd grades.
Over the last two years, many volunteers among our employees have joined this
project and presently dozens of employees participate in it.
Employing "Nehalim" Students G4
EC8
For over two decades, every year we have been employing students from the
"Nehalim" Religious-Technological Center, which aims to build a better future
for youth at risk by providing them with professional training. As part of the
employment project, "Nehalim" students are given a paid work placement for
two days a week in EL AL's transport and ground equipment garage. The work
placement usually also continues during summer vacations and even after their
high-school graduation until their army recruitment. EL AL employees tutor and
mentor the students and provide them with professional skills and values as well
as a sense of independence. In 2015 we employed 22 students via this project.
G4
Adopting "Kadima" Youth Houses and Clubs SO1
EL AL employees and retirees also volunteer in the community nearby, in the
"Kadima" youth houses in Ramla, Or Yehuda and Kfar Saba. These youth
houses support and help children and youth at risk and distress.
"Thanks and appreciation to the management and
employees of EL AL for this blessed, long-lasting
partnership, which expresses EL AL's way and
Israeli solidarity at its best. We are proud that EL
AL chose us too as a framework for support and
volunteering by its employees for the community
in general and those in need in particular".
Gilad Harish, "Lasova" (Kadima parent organization) Founder and Chair.
In this volunteering framework, our people arrive at the youth houses to do
homework with the trainees and, among other activities, help trainees prepare
for their matriculation exams.
34

Activity at the Youth House in Ramla
On the occasion of Women's Day, EL AL employee Galit Birenboim-Navon
lectured about women's empowerment, with a talk titled "Every Girl Can – Running
Toward Your Next Dream". Galit told the girls at the youth house how, starting
from running only 1 km, she came to run a 61 km ultra-marathon and fulfilled a
dream. The empowering evening ended by awarding every girl with a gift.
Rosh HaShana "Protective Hug" event that we held for lone soldiers and their families
35
Activities during Operation Protective Edge
During the hard fighting days in the summer of 2014, we could not but take part
in the national effort. Our employees, with a sense of national partnership, joined
many diverse activities for the benefit of residents of the South and IDF soldiers -
both those in military service and on reserves duty - among whom were also our
employees and their families.
The myriad of activities included preparation of thousands of care packages and
gift boxes for families and children from the South and for soldiers, including
our adopted battalion 202. We sent packages of "good things" accompanied by
heartwarming greetings to the families of our own people who were recruited, to
sweeten, even slightly, these complex days they were going through.
During the fighting days, we hosted groups of children from Ashqelon and other
southern localities. The children were given hearty EL AL breakfasts, watched
a movie, toured Company facilities and the BGN Airport, had lunch at the Katit
restaurant and enjoyed every minute. They were accompanied by volunteer
flight attendants throughout the day.
As part of our activities for the benefit of residents of the South, we also hosted,
on Company grounds, a special fair of businesses from the South, which were
financially hit by the war. The people of EL AL opened their hearts and wallets
and made the fair a great success.
Finally, at the end of the war, we led Operation Protective Hug, and flew in to
Israel parents of lone soldiers, so that they could celebrate Rosh Hashana with
their children. In cooperation with the municipalities of Ashqelon and Beer Sheva,
after the warring days we flew groups of children from both cities to Paris and
Johannesburg. We donated the flights, while the stay abroad was contributed by
the hosting Jewish communities.
 The Company hosted the organization "Friends for Health"
for traditional lightning of the candles of Hanukkah

It is important to mention that a multitude of additional activities were undertaken

by people from all parts of the Company that could not all be detailed in this
limited capacity.

G4
EC7
Activities by the Cargo Division Additional Activities G4
EC7

G4 Our cargo division also partakes in extensive activity for the community:
EC8
• As part of a touching project conducted with a lot of love, we subsidized the
flights of more than 100 dogs from municipal kennels across the country to
a new pension in Canada. The project was accompanied by the municipal
kennels and by volunteers, who escorted the dogs throughout the process
up to the boarding of the aircraft.
• Following the earthquake that took place in Nepal in April 2015, EL AL
and the cargo division responded to the request made by the Ministry of
Defense to launch a special aid flight to the disaster stricken country. The
special aid flight departed on a 747 aircraft, carrying 85 tons of equipment,
which included tents, medicine and a field hospital. From the moment the
appeal was received, arrangements were made in a very short period of
time, and solutions were found for our cargo customers, while maintaining
the qualitative regular service we usually provide them. Mobilized to this
complex effort, in close cooperation, were the Ministry of Foreign Affairs, the
Homefront Command, the Ministry of Defense, EL AL representative offices
in the Far East and Israel's embassies in India and Nepal.
• During 2014-2015, Maintenance and Engineering Division personnel G4
SO1
have enlisted once again to assist the robotics team of the Atid Lod High
School for Sciences, in preparation for the International FIRST Robotics
Competition. The body of the robot that represented the Atid team in the
national competition was constructed in Company workshops by the high
school students, under guidance of EL AL professionals.
• Additionally, our workshop staff occasionally fix up wheelchairs for the
different rehabilitation departments at Tel HaShomer Hospital, and construct
special accessories for the Israel Guide Dog Center for the Blind at Beit
Oved, in effort to improve the dogs' conditions as well as the guidance of
the blind.
• EL AL employees volunteer in Ramla also in a joint afterschool club for
Jewish and Arab children operated by "Yad Rachel". At the end of the
volunteering year, the children came for a special experiential tour of the
Company campus.
• As part of a cooperation with the ARTMARKET Gallery, the King David
Lounge hosts a changing exhibit of promising young Israeli artists. This way
we provide a platform for Israeli artists taking their first steps and encourage
the consumption of Israeli art and culture.
• Additional activities are undertaken during holidays and vacations and in
response to various initiatives of Company employees etc.

36
EL AL Volunteering Pensioners Donations G4
EC8
One of the ways to maintain our relationship with Company pensioners, who Our community contribution is regulated by a defined procedure. The Chief
served the Company for decades and gained abundant professional knowledge, Human Resources and Administration Officer is responsible for its execution.
is by creating a framework for them to volunteer in cooperation with the Company.
2014 2015
Thus, for instance, EL AL pensioners volunteer at the "Kadima" youth houses,
"Yad Sarah" and "Milbat", aiming to improve the quality of life and integration into
society of children, adults and disabled elderly people; they also take part in the
"Asif Ha-ir (Second Harvest)" project by "Lasova".
302,265
Financial contribution
335,572
Financial contribution

2,000 volunteer hours! 2,380,000 2,590,928

During 2015, EL AL pensioners contributed approximately

Money equivalents Money equivalents

In this context, we should also point out that as part of tax-free sales on EL AL
flights, we offer key chains designed voluntarily by Michal Negrin. The income
from sale of these key chains is transferred as a donation to the Israel Cancer
Association. During 2014-2015, about NIS 730 thousand were collected thanks
to this activity!

37

Volunteering EL AL employees
Appreciation event for EL AL volunteers
Concessions Committee G4
EC8
The concession committee is qualified to authorize discounts on plane ticket
sales on medical and humanitarian grounds. During 2014, discounts in the
amount of USD 22,947 were approved, and in 2015 the committee approved
USD 18,608 of discounts.
Volunteering activities of Company employees
38
3 Taking off with EL AL
Passengers | Innovation
Procurement

39
 Our Passengers
The Management Approach
G4
DMA
EL AL provides its services to passengers both from households and the business
sector, including occasional customers, luxury customers, frequent tourists to
Israel, groups from the Haredi sector and groups of assisted customers. Our
flight tickets are sold mainly through travel agents and marketers of tourist
packages, and also directly by the Company to institutions and individuals. In
terms of cargo, as abovementioned, most Company sales are made to cargo
agents, and other sales are conducted directly with final customers.
Qualitative service to our customers, who are major company stakeholders, has
been and remains one of our key assets. We devote great effort to providing a
professional and qualitative service that meets the very highest standards and
differentiates us from other airlines. In order to uphold these standards, to adapt
ourselves to varying market demands and the expectations of our customers
and to improve where possible, we do our best to be attentive to the public and
maintain open dialog with our customers.
Beyond the service experience on board, we emphasize the provision of
assistance, information and additional services to the customer also before liftoff
and after landing. With all novelties and changes, decency and transparency
have been and still remain primary values in our conduct with our customers.
At EL AL we devote effort to intensive activity all year long, on the ground and
in the air, in Israel and abroad, with dedication and care, aiming to provide our
passengers with the best possible flight experience and striving to position EL AL
in the forefront of leading global airlines.
Our customer service approach relies on four pillars:
1. Excellent Service Awareness
Creating excellent service awareness among all employees who have daily
contact with customers. For this end we maintain strict selection processes for
our flight and ground attendants, for EL AL posts around the world and for our
call centers. We seek candidates with service awareness, a high personal level
and very high tolerance and forbearance capabilities.
In addition to emphasizing service awareness on basic personnel training
courses, we conduct trainings, workshops and seminars for the purpose of
assimilating such awareness.
2. Dialog and Continuous Communication with Customers G4-26
In addition to providing our customers with comprehensive information, it is
G4-27
important for us to maintain constant communication with them and to also
hear what they have to say. EL AL collects more than 10,000 customer surveys
G4
monthly, addressing 15 different issues in the service received by the customer. PR5
Whereas research indicates that surveys of this kind are usually responded by
an average of 3% only, at EL AL we rate at 14% responders! Survey results are
received monthly, and we set targets and evaluate ourselves accordingly.
We further conduct additional designated surveys according to need.
In addition to surveys, we meet with our customers in person:
• Once a fortnight we conduct luxury client meetings at the airport.
• We conduct quarterly customer meetings headed by the CEO. Hundreds
of customers participate in these meetings, more than 80% off whom are
Economy Class passengers.
40
G4 2014-2015 Survey Figures
PR5
Number of Survey Responses Received Annual Quantities of Complaints/Praises on Service Quality Issues 2014-15 Percentage of Inquiries Responded Proactively 2014-15
138000
138000 3.0
137000 2.94 37%
136000 2.5 2.65
135000
2.0
134000

133000 1.5

132000 17%
131000
132000 1.0
0.85 0.79
130000 0.5

129000 Normalized Normalized Normalized Normalized

praises complaints praises complaints
2014 2015 2014 2015 2014 2015
* The number of inquiries is normalized to 1,000 passengers, in keeping with the customary presentation of this data by airlines. ** Complaints and praises refer to service of ground attendants in stations in Israel and abroad, aircrews, call center and our offices.

Thousands of complaints and commendations are received every month, and we Whereas research indicates that surveys of this
are not indifferent to the constructive criticism and feedback from our customers.
kind are usually responded by an average of 3%
Customers are also invited to approach us on their own initiative, through the only, at EL AL we rate at 14% responders!
Company's website or Facebook page. The Customer Relations Sub-Department
3. Constant Learning and Improvement
is responsible for addressing customer inquiries, among other things.
Every fortnight a discussion headed by the manager of the Customer Service
The prominent topics arising from the various surveys held among EL AL
Division is held, and once a month a discussion is headed by the CEO. These
customers are, among others, the passengers' sense of security and safely and
sessions include evaluation of meeting our targets in the area of customer service,
the issue of on-time performance. Additional issues in which our customers have
and examination of issues for preservation and further improvement on this matter.
shown interest in recent years include: new destinations, flight schedule updates,
new aircraft used, how we address customer feedback, as well as additional
service related matters relevant to Company customers.

41
4. Proactive Treatment
In addition to the abovementioned, we also approach our customers in a
proactive manner. A quarter of received inquiries from customers are assigned
proactive treatment. We train our employees to identify situations in which such
treatment is required and report them, so that customers would indeed receive
appropriate treatment.
Additionally, flight service managers are equipped by a unique tablet-computer-
based system – iMashab. It is a great auxiliary tool that helps manage the
service in the passenger cabin and the provision of qualitative customer service.
The system provides full information about the flight and passengers, and allows
us to deliver effective service, adapted to customer preferences and needs,
in a personal manner. Online reports can be received and transmitted via this
system, for ongoing customer treatment. Ground crews and office personnel iMashab system screenshot Our Service Convention
receive constant updates, so they can respond immediately to arising issues.
Thanks to this system, our customers are not "anonymous" and receive unique
personalized service. The information in the system is, of course, secured, and
erased from the tablet immediately following the flight.
This system was awarded a special excellence award in the Mobility 2014
competition by media outlet "People and Computers", for "intelligent use of mobile
infrastructure that generates an innovative service perception, accompanying
the passenger from the moment of booking the flight". The judges' panel also
mentioned that "EL AL is a pioneer of implementing applications in the world of
business mobility".

Investment in Customer Relationship Management

(CRM) Systems serves about 500 users in the organization, manages over a million club
To manage our customers, we have assimilated the use of an advanced CRM members, tens of thousands of occasional customers, hundreds of businesses,
system, which has grown and evolved with time. Presently the system already travel agencies, cargo agencies and tour operators.

42
On Time Performance
At EL AL we consider on-time performance to be a strategic goal and do our
best in order to achieve the upmost punctuality in takeoff times, and to head the
world's leading companies in this issue.
On-time performance has always been an important aspect of our service perception.
Keeping departure and arrival times immediately, directly and significantly influences
the Company's reputation and the satisfaction of our customers.
On-time performance is measured by our Control Department. Like most leading
airlines around the world, EL AL measures on-time performance based on flight
departure times:
74% 76%
2014 2015
of flights left on-time of flights left on-time
With the understanding that on-time performance is of central importance to EL
AL and its customers, we have emphasized the issue and concentrated special
efforts by all pertinent Company divisions, in order to generate improvement in
on-time performance data.
As part of this process, the Operational Control Forum convenes once a week,
headed by the manager of the Operations Division, to discuss the issue, debrief
incidents and examine means for improvement.
43
Safety and Security on Our Flights G4
DMA
Safety and security on our flights are naturally material aspects for us, as an G4
airline. Our management's outlook on the topic is expressed by the Company's PR1
Safety Convention.
EL AL is considered to be one of the safest companies in the world, and not in
vain. We attribute upmost importance to the safety and security of our flights,
and spare no resources in doing so. With regard to security issues, we operate
under instructions from national security authorities and we work in full and close
cooperation with them.
Our commitment to flight safety, which has direct impact on human life, is first
and foremost. At EL AL we do not suffice with adherence to legal requirements
and aviation regulations; our actions expand beyond compliance. Thus, for
example, our aircraft are equipped with the finest safety aids and accessories,
including measures superfluous to those required by law and regulations, and
the food that we serve undergoes very strict safety testing.
EL AL is subject to international and national regulations and protocols, which,
considering the importance of the topic of safety and security in aviation, are
extremely strict. Periodic reviews are held to examine the Company's compliance
with these regulations and protocols.
Since 2012, we use the Aviation Quality Database (AQD) system to manage
safety and risks, and it serves us to report, assess risks, analyze incidents and
follow-up on correctional actions taken. Additionally, the system serves us to
assemble data, identify trends and transfer information to relevant responsible
factors. An additional system we use is the Safety Management System (SMS) as
required by the Civil Aviation Authority of the State of Israel and the International
Civil Aviation Organization (ICAO).
We conduct periodic exercises to examine the implementation of our safety and
security protocols and perform debriefings in order to instill our safety perception
and Company procedures.
EL AL Safety Convention
In March 2014, the popular American news outlet "Business Insider" praised EL
AL in an article titled "Israel Has The World's Safest Airline". The website quoted
the prestigious investigative program "60 minutes" by CBS: "What's the safest
airline in the world? There's no question. It's El Al", particularly noting protection
from terrorism.
Training Emergency Teams
As part of our crisis response program, we established a Care Team to assist
families of passengers at a time of crisis. During a crisis, this team will constitute
the linkage between those involved in the incident and families of passengers,
and EL AL and the entirety of pertinent factors. Team members will directly
assist families to cope with the event, accompany them, lend a listening ear and
supportive arm and convey reliable information in real time. Thus far about 200
EL AL employees and pensioners have completed the initial training course.
Continuing to Renew and Improve
During 2014 and 2015, we continued to renew and improve the products and
services that we offer to our customers and to offer special deals and campaigns.
The Procurement Plan During the years 2014-2015, the reception of 737-900
aircraft continued. Additionally, by the end of 2015, a transaction for the purchase
and leasing of 787-800 and 787-900 Dreamliner aircraft went underway, enabling
us to offer our customers the most advanced product presently available in the
aviation market. The new Dreamliner aircraft, expected to arrive between the
second half of 2017 through to 2020, alongside the 737-900 aircraft, the most
efficient and economical of their kind, are considered to be the most advanced
passenger airliners in the world.
As part of activities undertaken to define and characterize the future Dreamliner
aircraft, we hosted 35 of our luxury customers on EL AL campus, in order to
include then in the process of selecting seats for the luxury class. Customers
were happy to arrive and expressed their involvement as well as much content
for being included in the process.
44
 Inauguration of the new line to Boston Celebrating UP's birthday An UP aircraft is born

UP was recently awarded "Best

Developing Airline" for increasing
traffic on the Tel Aviv-Budapest line.
The award was received by EL AL
Hungary Manager, Yanush Vardi,
Revenue Management Director Dina
Ben Tal, and ‎Route Manager, Michal
Wegsmann, together with the airport
management team.

A New Line to Boston In June 2015 we launched a new line to Boston. The
Company started operating 2 weekly direct flights on this route by a 767-300
Boeing aircraft, in a 218 seat formation, of which 22 are sleeper seats in the
Business Class and 28 seats are in the Economy Plus Class. During the flight,
passengers can enjoy a streaming technology entertainment system, which
enables viewing of a rich variety of contents in maximum comfort and directly
from their personal appliances.
Taking Off and UP In 2015 we celebrated a one year anniversary to the UP
brand, which was launched in March 2014, in response to the increasing
competition from Low Cost airlines. In the framework of the UP brand, low
cost flights are operated to five European destination – Berlin, Budapest, Kiev,
Prague and Larnaca, and two types of tickets are offered to passengers – basic
and upgraded. The "Matmid" frequent flyer club members can also collect points
on UP flights, in reduced quantity compared to normal scheduled flights.

45
In-flight Communication System (streaming) During 2015 we continued the
process of installing an inflight entertainment system that includes an inflight
communication system, on some of the lines between Israel and Europe, North
America, the Far East and South Africa, as part of our improvements to the
flight entertainment experience. The system broadcasts Audio & Video on
Demand (AVOD) entertainment contents to the passengers' personal devices
via the Dream Stream by EL AL application. The service is provided to our
customers free of charge, and enables passengers to enjoy a variety of films,
TV programs, songs, games, children's contents, passenger information and so
forth. Additionally, there is an option of renting iPads on some of the flights, as EL AL 2 Door With regard to cargo, in July 2015 we launched a new service, "EL
part of the inflight entertainment choices. AL 2 Door", enabling deliveries from BGN Airport directly to the customer's door,
as well as provision of accompanying services, including handling of paperwork
In the future, we intend to integrate WIFI web connection options on some of
and clearing cargo through customs. This service is provided for deliveries
our aircraft, starting in May 2016. EL AL is expected to be the first airline in
weighing 45 kg to 7 tons, as well as deliveries of unusual sizes that are only
Europe to launch a technology that would allow passengers to work inflight on
suitable for flying on a designated cargo aircraft.
high bandwidth, thus significantly improving web surfing and inflight experience.
Families Choose to Fly "ELALCHIK"
Surprises in the Sky As part of our efforts to improve the passenger experience,
we have surprised passengers on our flights with a variety of charming surprises: During summer vacations we operate the
the fly&buy duty free personnel surprised frequent flyers on EL AL and UP flights "ELALCHIK" flights – approximately 80
who flew on their birthdays; EL AL tourism crews gave away tickets for concerts particularly surprising flights that include
abroad to happy passengers; and ISSTA Sport awarded tickets for football activities for children. Children flying to
matches to passengers flying to London – in collaboration and coordination with and from New York, Amsterdam, Paris
"EL AL Facebook" and the aircrews. and London enjoy varied experiences
and activation by EL AL attendants,
Pre-Flight Service at Home As part of our cooperation with "Premium Check-In",
who receive them onboard the aircraft,
in August 2015 we launched a new paid service, enabling our passengers on
welcoming them to a journey full of
flights departing from Israel to execute the security check procedure and deliver
surprises, including activities throughout the flight: toys, workbooks, drawings
their luggage from home, within a range of 8-27 hours before their flights.
etc. "Flights attendantchiks" are selected from among the children on board, and
they receive special apparel and join the aircrew in handing out drawing pages,
coloring kits and other surprises.

46
The "Self-Service" Approach
In recent years we have been adapting ourselves to an increasing tendency of
enabling "self-service" to airline customers. Self-service is in line with making An Hindu meal on board? That is also bookable on our website
customer services as accessible as possible, and making it easy to book plane
tickets and additional accompanying products. Self-service shortens processes,
saving time and unnecessary waiting.
Direct Marketing of Plane Tickets The growing trend of direct marketing of plane Airport Kiosks Starting in June 2015, changes were made to the security check
tickets online is intended to reduce airline costs on marketing and distribution. procedure at BGN airport terminal 3. For the purpose of making the process
EL AL continues to adapt its activity to this tendency, whereas during 2015 the more efficient for our customers, 20 new-generation self-service kiosks were
extent of sales through our website grew by 18% (including sale of packages, positioned in the check area, enabling self-check-in for flights and the issuing of
accompanying services and upgrades), and the number of tickets sold online in luggage tags and boarding passes. This process allows passengers to execute
2015 was 37% higher than in 2014. We anticipate that in upcoming years, growth the entire check-in process, including baggage drop, in an independent, fast and
in revenues from online ticket sales will continue, and we therefore continuously convenient manner.
improve and update our website.
Varied Independent Activities on the Company Website EL AL enables
its customers, in particular its frequent flyer club members, to independently
execute a variety of activities on the Company website, such as: purchasing
bonus tickets, utilizing bonus points for upgrades, restoring passwords etc.

47

EL AL's accessibility unit at the "Access Israel" Conference 2015 | Israel Station Department
Adapting Service to Assisted Passengers
EL AL operates in accordance with Israeli legislation regarding accessibility,
and took initiative to voluntarily adopt the even stricter U.S. Department
of Transportation guidelines with regard to adapting its service to assisted
customers. From the understanding that often a flight might not be a very
pleasant and convenient situation for assisted passengers, we strictly ensure
that the service to such passengers will be particularly sensitive and considerate;
be respectful of their private personal spaces; provide comprehensive and
complete information; and be available for any question and inquiry, extending a
sense of security and ease.
For the purpose of providing an adapted service to assisted passengers, we have
established a specially qualified unit at EL AL. The team of this unit includes 12
check-in attendants and about 80 passenger accompaniers. The staff undergo a
special selection process intended to identify specific characteristics for this role.
After being selected for the position, employees undergo a designated 2-week
course that includes contents on accessibility issues and service for the assisted,
assistance to passengers with severe disabilities, service to passengers with
mobility limitations, an adapted first aid course and additional relevant contents.
At the end of the course, employees undergo two weeks of practical training.
Additionally, we have also performed physical adaptations, and positioned
special service counters at the terminal, equipped by all necessary means for the
provision of accessible service. These counters feature unique security check
queues and seats for waiting prior to check-in. We also use different instruments,
such as: electric vehicles to transport passengers across the terminal ("buggy"),
"Elalit" – a new and indulging vehicle for the transport of up to 12 passengers
(incoming flights), optimal use of the airport's accessibility facilities and a narrow
wheelchair adapted to aircraft structure with its narrow passages.
"It is fascinating to see the level of accessible
service and constant improvement the company is
making, thrilling to see the impressive outcomes,
when a company truly and thoroughly internalizes
the importance of the business-social importance
of an essential target audience of people with
disabilities and the elderly".
Yuval Wagner, Founder and President, "Access Israel".
Our accessibility provisions are published on the Company's website, which is
also designed in accordance with accessibility regulations.
Company employees who provide service to our customers, have undergone
training in cooperation with relevant social organizations, such as the "Nalaga'at"
Center and nonprofit "Access Israel", with regard to providing accessible service.
48
The Company's renewed website
Digital EL AL
The Company's Website
During 2014-2015 we continued renewing our website in order to improve
our online service experience, making it easier and more efficient. Presently,
alongside the possibility of booking and managing reservations, whether by
seat selection or ordering meals suited to different and varied diets, through the
website our customers can also receive abundant information and useful tips
for their selected destination, explore offers for holiday packages, rent a car,
purchase travel insurance and book accommodations and tickets for a range of
attractions with one click. The "Matmid" frequent flyer club homepage was not
neglected and has also been also upgraded, so that club members are able to
check important details regarding their accounts and receive news, updates and
an offering of special deals adapted especially for them.
We have recently launched a new service on our website, developed by our
computing division, of issuing invoices for plane tickets purchased either online
49
UP's website
via the Company's website or the reservations call center. Using this new service,
customers feed in their details online and the invoice is sent to them directly. This
is another phase of improved efficiency and service for our customers, who thus
far had to phone our call center in order to issue invoices.
For the UP brand, a designated website was launched, through which customers
can book their flights and save on services that they might not be interested
in, such as checked baggage. Furthermore, passengers can choose where
they would sit, check-in early, print boarding passes and perform a variety of
activities, all in comfort, ease and without leaving their homes. In the spirit of
brand values, the website was designed in a simple accessible manner that
facilitates the modular purchase process of the service.
Our website, which is also translated into English, constitutes an additional
means of communicating with our clientele in Israel and globally. The website
details all the ways in which we can be approached – via email, telephone,
company offices, Facebook and postal address. Via the website our customer
can also easily follow their inquiries' treatment status.
Our Facebook Page
An additional way of communicating with our customers in Israel and around
the world is via our Facebook page. In fact, the page currently constitutes an
additional focal point for public inquiries, and both setups – social media and the
customer service system – operate in coordination, in order to provide the best,
fastest and most effective response. In addition to addressing complaints, the
Facebook page allows us to respond to passengers who encounter problems
while abroad and even in cases of emergency and distress.
The Facebook page also serves our customers for the purpose of receiving
information regarding their destinations, as responses from other users and
Our English facebook page. Don't forget to Like us (-:
the discourse developed with them, closely supported and accompanied by our
employees, ensure that the information is correct and up-to-date. Occasionally In addition to our Hebrew Facebook page, EL AL has an English language page
we upload useful links and hold award-carrying "tip competitions" among users. for the convenience of our non-Hebrew speaking customers in Israel and around
the world.
2014 2015 Special Activities for Our Facebook Page Followers

Number of responders 9,458 23,008 From time to time we hold unique activities, events and meeting for our Facebook
page friends and followers. It is an additional way for us to maintain dialog with
Number of new page our customers and enhance communication with them. Among the activities we
83,000 54,110
followers that year hold, we conduct occasional tours and experiential fun days for our Facebook
Number of page friends at the Company campus and our various facilities.
followers (by the end of 369,401 386,843
December that year)

* in 2015 Facebook executed a "cleanup" of inactive accounts, which meant that

out of 54,000 new followers that year, post factum 17,542 were added.

50
EL AL Application
Our mobile app complements the Company's service strategy
and expresses our "self-service" approach. The app delivers our
services directly to our customers' palm via a simple and friendly
interface. Much like the Company's website, the app enables customers in Israel
and abroad to perform a variety of advanced actions in a user-friendly, easy
to operate manner. Additionally, via the app passengers can receive tips about
destinations, rent a car, book hotels and other complementary products.
In 2015, we upgraded the app as part of a comprehensive plan to construct
added value for Company customers throughout the "customer journey" in the
e-trade environment. The upgrade enables a much broader use of appliance
capabilities and additional improvements that include better visibility, new
contents and a registration mechanism to the app for the purpose of presenting
personal contents and receiving push messages.
For the benefit of our customers we operate an additional app for
tour guiding and travel maps.
In 2015 we launched an app for our cargo division, as an additional
expression of EL AL Cargo's motto of innovation. The new mobile
app enables cargo customers to follow their deliveries with ease,
comfort and speed.
51
Our Service Receives Awards and Recognition
• In 2015 we were ranked in the top 20 international airlines by "Condé Nast
Traveler" magazine, for our quality of service. The magazine staff particularly
pointed out the following reasons as a choice to fly EL AL: fine kosher meals,
a wine menu that includes qualitative Israeli wines, iPad rental option and the
streaming app for inflight entertainment experience. Furthermore, favorably
mentioned were our technological innovation and the "Cockpit" initiative
in the aspect of product development, which, as mentions, was recently
awarded first prize in the APEX competition.
• "Brand of brands" of the international Superbrands organization – in the
years 2014 and 2015, the Israeli public chose us again as a Superbrand in
the leisure, recreation and culture category. Our choice attests to the trust,
satisfaction and loyalty of our customers.
EL AL's CEO at the 2015 Israel Superbrands Ceremony | Superbrands Israel

• In 2015 we have once again been awarded first place in the customer
satisfaction survey by newspaper "Yediot Ahronot", which examined the
level of satisfaction from the quality of service of airlines flying out of Israel.
Greatest Leg Space
The "Mamon" supplement of "Yediot Ahronot"
checked and found that the leg space on EL AL
flights is the largest of companies and aircraft types
examined by the international website "SeatGuru",
including Lufthansa and British Airways.

Recognition for Service Excellence

In September of 2015 we held a festive event of recognition, to summarize
our personnel service excellence pilot project. Participants in the event were
employees of the service division, who were selected by EL AL's top Platinum
customers as providers of service above and beyond expectation. During the
meeting, those excelling in service, as selected by our prestige customers, were
awarded certificates of recognition and rewards.

52
"Matmid" Frequent Flyer Club
As part of our marketing measures and efforts to increase the customer loyalty
to the Company, we offer special benefits to passengers who are members
of our "Matmid" Frequent Flyer Club, subject to club regulations. Passengers
receive point credits for their journeys on all international flights executed by
the Company. These points entitle passengers to varied benefits, including
discounted or free-of-charge plane tickets, upgrades to higher service classes
and admission to lounges serving the Company around the world.
The Company has agreements enabling the collection and execution of club
points on flights by other airlines, exchange of points collected by use of credit Similarly to 2014, the traffic of frequent flyers club members in 2015 constituted
cards and in other businesses with "Matmid" points, cooperation agreements approximately 29% of all passenger traffic in the Company.
enabling the collection of club points and additional benefits resulting from
From time to time we hold special events for our club member customers. For
purchases and agreements allowing use of club points in different businesses.
instance, in April 2015 we held a "Feminine Monday" event for leading "Matmid"
Furthermore, agreements were made with nonprofits working for social, value- women members. The event was moderated by media persona and journalist
based and humanitarian causes, for the contribution of club points to these Dana Weiss, who hosted scientist and hi-tech entrepreneur Dr. Kira Radinsky,
nonprofits by club members. who lit an Independence Day Torch in Israel's national ceremony, and Tzameret
Fuerst, social entrepreneur and founder of the Israeli startup "PrePex", dedicated
In February 2015, a series of commercial changes made to the price lists of point
to reducing the spread of the HIV virus.
collection and execution came into effect, with special emphasis on benefits
given to our newly launched credit card holders - Fly Card. The "Matmid" Frequent Flyer Club was Also Awarded Prestigious Prizes
In 2015 we conducted technological improvements, now enabling club members In 2014-15, the "Matmid" frequent flyer club was awarded three prestigious prizes:
to preform activities in their accounts via the website, tablet or smartphone.
1. The Freddie Awards, "Oscars" of global airlines' frequent flyer clubs, awarded
Additionally, a designated website for members was launched, providing detailed
the Matmid with Up and Coming Program of the Year and Best Promotion.
information regarding the collection of points and special deals, and enabling
actions and providing information with regard to future flights of club members. 2. The launch of the Fly Card credit card received the Winning Launch award for
2014 by the Israel Marketing Association.
The number of club members as of December 2015 was approximately 1.61 million,
of which about 337,000 are members of GlobaLY (a unique club membership card 3. In the Yediot Ahronot survey, the Matmid won Best Customer Club among
issued to Israel supporters in the diaspora). airlines in 2015.

53
The Fly Card Credit Card
In 2015, we continued operating a program intended to nurture and preserve "Fly Card" credit card launch campaign
our customers, while expanding our clientele. One of the measures activated
by this program was the issuing of branded credit cards "Fly Card" and "Fly
Card Premium" for Israeli account holders, as part of cooperation agreements
between EL AL and financial institutes. The branded credit cards provide their
holders with unique benefits according to card type and extent of use. Benefits
include collection of frequent flyer points due to transactions executed by the
branded credit cards.

54
Innovation at EL AL
Airlines around the world, including EL AL, found themselves in the past decade
facing the innovation challenge. At EL AL we are trying to envision tomorrow,
suggest the most novel solutions and provide our customers with added value.
The steps we take, through all divisions of the Company, stem from the belief
that the future of the aviation sector and the tourism industry is in innovation,
technology and creativity.

Groundbreaking Innovation Incubator

In response to the need created and aiming to be exposed to groundbreaking
innovation and assimilate it into EL AL's operations, in 2015 we launched the
"Cockpit" initiative – a unique inventive program for the acceleration and support
of startups addressing aviation, tourism and related issues. The incubator is
intended for companies in different stages, from early stage prototype through to
growth stage companies. Presenting the Cockpit initiative at the APEX Competition

In the framework of this initiative, we meet with hundreds of entrepreneurs and are
exposed to numerous inventive technologies from Israel and around the world.
Any initiative accepted into the program interfaces with leading professionals
in the aviation and tourism sectors, both from within the Company and external
experts, along with mentoring, generating business connections and "door
opening" in the field, both in the local and international markets. Startups benefit
from access to EL AL systems for purposes of development and integration,
initial funding, commercial, technological and legal consultation, as well as the
possibility that EL AL would be their first significant customer.
The project was awarded the international Airline Passenger Experience
Association (APEX) competition in the prestigious category of "Best Achievement
by an Airline for 2015". Competition judges and the event's large audience
were particularly impressed by the establishment of such a unique program
by an airline, the initiatives under it auspices, and the array of groundbreaking
innovations for the benefit of customer experience that the program generates
and will be generating, for EL AL in particular and the international tourism and
aviation industry in general.

55
G4-12
Procurement and Supply Chain
Operational Procurement
Aircraft Jet Fuel Aircraft and Engines
The main resource we use is jet fuel, or aviation turbine fuel (ATF), for our Another major operational procurement we make is of aircraft, all produced by
aircraft. ATF is one of our primary expenditure components, as it is for any "Boeing", and engines by "Rolls Royce", "Pratt and Whitney" and "CFM".
airline. In 2015 the Company's ATF expenses were approximately 30.2% of the
operational expenditures of the Company, compared with about 39% in 2014. The Passenger Aircraft Fleet Owned by the Company

We purchase ATF both in Israel and abroad. In 2015 we acquired ATF in Israel Aircraft Average age Average number Max. flight Cargo carriage
Total
type (in years) of seats range (NM) capacity
from three suppliers selected via a tender process, whereas about 70% of ATF
purchase in Israel were bought from Paz. In December 2015, our contracts with fuel 747-400 6 20.5 408 6,400 18.7
supplying companies "Paz", "Sonol" and "Dor Alon" were approved for the supply
of 60%, 30% and 10% respectively, of the Company’s annual fuel consumption for 737-900ER 8 1.2 172 2,500 2.5
2016-2017. Furthermore, we have decided to contract with companies performing
fueling services (franchisees of the IAA) "Paz Aviation Services" and "Mercury" in 737-700 1 16.5 110 2,500 2
agreements, according to which each of them would supply 50% of the Company's
fueling services at BGN Airport during 2016. The accumulative annual extent of 737-800 6 11.9 154 2,400 2
these agreements is estimated at approximately USD 186 million.
As mentioned, we also purchase ATF from a number of suppliers abroad, 777-200ER 6 12.8 279 7,300 22.4
including fuel companies that supply ATF in a large number of airports, following
a tender process and commercial negotiations. We occasionally examine the 767-300ER 2 24.5 216 5,300 8
economic viability of importing ATF independently, compared to purchasing from
local suppliers, and conduct such actions according to market conditions. Since Total 29 12 240
2015 there was no AFT import.
Data accurate as of December 31, 2015
In addition to fuel suppliers, the Company received fueling services in Israel from
other suppliers.

56
Passenger Aircraft Leased by the Company

Aircraft
Total Average age (in years) Average number of seats
type

737-800 9 12.4 172

767-300ER 5 18.8 217

Total 14 14.6 188

Data accurate as of December 31, 2015

Keeping Our Contractors' Employee Rights Training our Suppliers:

We are committed to act responsibly toward our suppliers and the service Special Workshops for Taxi Drivers
providers we work with as well. In accordance with legal requirements and in the
As part of our interaction with our suppliers, we have developed unique service
framework of Company procedures, we meet with our contractors' employees
workshops for taxi drivers from the taxicab company that chauffeurs our aircrews.
randomly, examine their wage data and hold periodic cross-section sample tests,
Annually about 120 drivers undergo these workshops that include lectures and
in order to learn about their employment conditions. Cases of employee rights
contents about service providing, safe driving and references to the Company's
violations and/or failure to meet appropriate standards are addressed and might
relevant safety procedures. In addition to improving the service received by EL AL
result in ending communications with the culpable supplier and or contractor.
employees, these workshops contribute to the improvement of service provided
by these drivers to all of their other passengers, including tourists arriving in Israel.

57
 Our Passenger
Aircraft Fleet
Boeing 747-400 Boeing 767-300ER
Total in service: 7 (including a freighter) Total in service: 7
Range: 6400 NM (11,860 km) Range: 5980 NM (11,090 km)
Engines: 4 Pratt & Whitney Engines: 2 Pratt & Whitney
Cruising speed: 575mph/ Mach 0.85 (927kmh) Cruising speed: 530mph/ Mach 0.80 (851kmh)
Length: 231ft 11in (70.7m) Length:159ft 2in (54.9m)
Wingspan: 213ft (64.9m) Wingspan: 156ft (47.6m)
Seats: 381-455 Seats: 218/228
Main destinations: NYC, Newark, Bangkok, London, Main destinations: Toronto, Beijing, Mumbai,
Paris and selection of destinations in Europe Johannesburg, Bangkok, Boston and selection
of destinations in Europe

Boeing 777-200ER Boeing 737-900ER Boeing 737-800

Total in service: 6 Total in service: 8 Total in service: 15
Range: 7300 NM (13,520 km) Range: 2500 NM (4,630 km) Range: 2400 NM (4,445 km)
Engines: 2 Rolls Royce Engines: 2 C.F.M Engines: 2 C.F.M
Cruising speed: 559mph/ Mach 0.84 (901kmh) Cruising speed: 553mph/ Mach 0.82 (890kmh) Cruising speed: 516mph/ Mach 0.78 (830kmh)
Length: 209ft 1in (63.7m) Length:138ft 2in (42.1m) Length:129ft (39.5m)
Wingspan: 199ft 11in (61m) Wingspan: 117ft 5in (35.7m) Wingspan: 112ft 7in (35.8m)
Seats: 279 Seats: 172 Seats: 154-185
Main destinations: NYC, Newark, Los Angeles, Main destinations: ELAL destinations in Europe Main destinations: ELAL and Sund'or destinations
Hong-Kong, London,Paris and Moscow to Europe
**Including aircraft used ny UP & Sund'or

58
G4-26 Dialog with Suppliers
Our Procurement and Supply Department interacts with our suppliers by a variety
G4-27
of means, such as an orderly process of lodging complaints by suppliers and their
investigation; a possibility to inquire about tenders, joint and mutual development
of products and services, as well as the transfer of knowledge and resources.
As part of the continuous dialog with suppliers, we occasionally circulate
questionnaires intended to assess their level of satisfaction from working with
EL AL and to identify processes that could be improved and made more efficient,
alongside successes that should be preserved and intensified.
In response to the questionnaire conducted at the end of 2015, 17 of our suppliers
(of different manners and extents of transactions) participated:
• 94% indicated that the transaction process with EL AL was fair, that
negotiations with them were conducted in a respectful and appropriate
manner, and that as a rule - EL AL acts fairly with its suppliers.
• 94% of suppliers noted that EL AL keeps its promises, 82% mentioned that
our payment ethic is high and 76.5% indicated that the process of payment
to suppliers is clear and transparent.
• 94% mentioned that they have an address and know who to contact if they
need to raise issues for improvement and treatment.
• 100% noted that they would be interested in working with EL AL in the future as

59
4 Home in the World
The People of EL AL

60
 The People of EL AL Our Workforce G4-9

G4 In 2015 EL AL employed, both in Israel and abroad, a total of 6,554 employees,

DMA The Management Approach compared to 6,365 employed in 2014:
G4-10

G4
EL AL's mottos, both in English – "It's not just an airline. It's Israel" - and in Hebrew,
2014 2015 LA1
which translates as "At home anywhere in the world", are applicable to describe
G4
the Company's policies concerning its employees and work environment. We Company representation Company representation LA12
aspire and make every effort for each and every one of our employees to feel that Israel offices overseas (including Israel offices overseas (including
they are members of the EL AL family throughout the generations. Our perception 24 Israelis posted abroad) 24 Israelis posted abroad)
is that the Company's human capital is the most important resource in the quest to
5,915 450 6,106 448
achieve our goals and our successes.
Stemming from this belief, we provide our employees with varied welfare benefits,
2014 2015
opportunities for training, development and promotion, and, of no lesser importance,
an open door policy for them to inquire, consult, speak and express what's on their
minds, including any criticism. All these are made possible in a safe, suitable and Permanent Temporary Permanent Temporary
employees employees employees employees
respectful working environment that offers equal opportunities for all.
As part of the momentum of improving intra-organizational processes, in 2014 3,788 2,577 3,808 2,746
we launched a SAP-based system for human resources that serves different
The data above refers to number of people, whereas data in the Company's financial reports refers to number of jobs.
departments within the Company with regard to aspects of managing HR in Israel
and abroad.

58 470 553 1457 2188 703 42 586 49

Engineers Workshops Aircrew Flight Administration Maintenance Senior Management Technical
Personnel Attendants and Services Management Management

61
 The strong seasonality of the tourism sector compels us to adjust our personnel
Total Numbers of Employees in Israel in Different Company Divisions (as of 2015)
inventory according to demand, by means of a fluctuating number of temporary
Division Permanent Temporary Total employees. EL AL's security deployment includes workers employed by the State,
with the Company paying part of their salaries (in accordance with the division of
Aircrew personnel 553 - 2,746 security expenses between the Company and the State).

Flight attendants 378 1079 2,746 Together with the digital marketing department, we recently launched a new and
upgraded employment website featuring available positions in the company,
Administration & suited to EL AL's language. The new jobs website includes more information for
973 1245 2188
services
applicants and candidates seeking to join the EL AL family, easing the process of
Workshops 356 114 470 application and screening.

Maintenance 579 124 703 More the 98% of EL AL employees in Israel are contracted by collective employment G4-11
agreements, and the remainder are employed by personal contracts. EL AL does
Management 536 50 586 not employ workers in professional positions via contractors or employment
agencies.
Engineers 52 6 58
Technical EL AL Representations Abroad G4-6
49 - 49
management
As mentioned, EL AL has 28 representative offices around the world. Each EL
Senior AL office abroad is led by a Head of Representation, who is responsible for the
30 12 42
management
entirety of Company activities in the country or geographical region over which
Total in Israel 3,476 2,630 6,106 they preside. Additionally, a Station Manager is responsible for Company activities
Israelis posted
in the overseas airport. Each representation has an accounting department, HR
24 - 24 department and sales and reservations department. The larger offices also have
abroad
call centers that handle sales and reservations.
Locals abroad 308 116 424
The Company employs approximately 400 employees in its representation offices
Total abroad 332 116 448 abroad, of which 24 are Israelis sent to fill managerial roles abroad (Israelis
stationed overseas or "posted employees"). Most Company employees abroad,
Total in Company 3,808 2,746 6,554
with the exception of posted employees, are employed by collective work
agreements between the Company and the relevant trade union in the particular

62
 The Faces behind the Data
EL AL's Facebook page features a special video series presenting Company employees working in different roles, who talk about their work and take viewers
on a short visit "behind the scenes".

EL AL Pilot Yuval Cohen Aircraft Maintenance Control Center Flight Attendants

country, or according to employment agreements with employee representatives. Age Diversity G4-10
The working conditions of Company employees in some countries are not anchored
by collective agreements, but are determined by the Company in accordance with G4
2014 2015 LA1
customary terms in the aviation sector or of the national airlines of these countries.
G4
In some of the representation offices, employees are employed by personal LA12
contract or via a handling agent. End of All End of All
Hired Hired
employment personnel employment personnel
In order to improve the interaction between our employees abroad and the
Company in Israel, the Company's intranet portal was translated into English,
Under 30 618 290 1573 478 311 1586
and now all employees, both in Israel and abroad, can be kept updated about
occurrences in the Company and other relevant contents. The translated portal
30-50 265 204 2976 248 125 3199
enables our employees abroad, among other things, to directly contact different
factors within the Company in Israel. Furthermore, our monthly newsletter is
Over 50 22 99 1816 13 132 1769
translated to English and sent to employees around the world. We take additional
steps intended to improve the attention for our employees overseas and strengthen
Total 905 593 6365 739 568 6554
their sense of belonging to the Company.

63
G4-10 Gender Diversity

57.2 42.8
G4 Women account for about 42.8% of our employees: we employ 2,806 women
LA1
and 3,748 men. Out of all permanent Company employees, about 30% are
G4 women, whereas the percentage of women among temporary employees is 57%.
LA12
Women are 19% of employees in the top ten income earners in the Company, and
constitute 14.3% of our senior management.
In accordance with the collective agreements that apply to Company employees,
there are no differences between the basic salaries of men and women doing the
same job and holding the same rank.

2014 2015 Spreading Their Wings

EL AL takes pride of the five female pilots
Hired End of employment Hired End of employment in its ranks, one of whom is a captain.
% % % % % % % % Captain Smadar Shechter and First Officer
Women Men Women Men Women Men Women Men Meirav Schwartz made history when they
543 363 355 238 368 371 323 245 were assigned together on a flight from
(60%) (40%) (60%) (40%) (50%) (50%) (57%) (43%) BGN Airport to Larnaca, and (wo)manned
Employees Employees an all-female cockpit.

532 349 344 214 361 361 313 191

Managers Managers

10 14 11 24 7 10 10 54

64
Education Diversity As part of our recruiting efforts for the expansion of the EL AL family, we have
decided to open courses intended specifically for students, for roles of flight
The Distribution of Academic Education of Permanent Employees in Israel (by attendants, ground attendants and call-center service representatives. The
Academic Major):
courses begin during the summer vacation and take place in July-August.

Field Undergraduate degree Graduate degree In order to recruit the very best students, the Company's intake and employment
department participated in several conferences held in universities and colleges,
Social Sciences 222 44 where a flight attendant, ground attendant and service representative each
presented their respective roles, answered questions and provided additional
Natural sciences 90 13 information and explanations to participants interested in applying.

Humanities 101 10 Seniority in the Company G4

LA1

The seniority average at EL AL is 13.1 years in the Company. 726 of our employees
Engineering 79 11 have been with the Company for more than 30 years.

Industry and management 50 5 Up to 5 Over 30

Seniority 5-10 years 10-20 years 20-30 years
years years
Economics / Business
309 169 Permanent 290 550 1681 598 689
Administration

Law 33 5 Temporary 2295 267 133 14 37

Tourism / Aviation Management 22 1 Total 2585 817 1814 612 726

Other 20 6

Total 926 264

Excluding posted employees and flight attendants; data is based on updates made by employees in the HR system.

65
 Captain Amos Faran lands the 777 aircraft
for the last time, after 23 years of flying EL AL
| EL AL News

Last Landing Commemorating our Fallen Employees Killed in

Following decisions by the International Civil Aviation Organization (ICAO) Battle and Victims of Terrorism
and the Israel Civil Aviation Authority, as of November 2014, pilots over the
In 2014 EL AL inaugurated a new monument in the Company campus, in
age of 65 are no longer permitted to pilot aircraft on commercial flights. In
commemoration of fallen soldiers of Israel and victims of terrorism among Company
light of these news, within a short time span we have had to bid farewell
employees and their families. A memorialization website was also launched.
to some of our best people – experienced, excellent aviators, including
Operation Entebbe veterans, air force squadron commanders, highly
experienced Mirage and Phantom combat pilots, flight trainers, examiners
and instructors – genuine salt of the earth, with notable extensive and grand
careers, both at EL AL and elsewhere.
Our air operations department ensures that every pilot celebrating 65 will
have a pointedly moving event – as they land in Israel for the last time as
pilots. In these events, the pilot is welcomed by friends and family together
with the department management, and a touching ceremony is held in the
aircraft to express appreciation for years of flying. Remembrance Day ceremony for the fallen by the company campus monument

We are grateful to our aviators who have brought hundreds of thousands of

passengers home safely and carried Israel's flag as high as possible.

66
 G4
DMA
Employment Diversity and Equal Opportunities
We consider a diverse working environment to be of great value that we can
and should promote. We therefore act for the inclusion of different populations
among our employees, including populations that are underrepresented in the
employment market. The Company's view is that the inclusion of people from
varied sectors and cultures is essential for the growth of Israeli economy, improves
our own economic performance and contributes to the cohesion of Israeli society.
We are therefore pleased to note that during the years addressed by this report,
no cases of discrimination in the screening of candidates for the Company were
revealed. The inclusion of such populations accordingly was also undertaken by
EL AL's subsidiaries - Tamam and Katit.
As part of our perception of corporate responsibility, EL AL defined a policy of
promoting equal opportunities in employment, and it operates in accordance
with this policy.
EL AL's Policy of Promoting Equal Opportunities in Employment
• EL AL respects the principle of equal opportunities in employment, and considers
itself committed to enabling such equality to all candidates and employees.
• EL AL makes decisions with regard to employee screening, recruitment,
hiring and promotion within the Company strictly based on matter-of-fact
and according to Company needs only, without discrimination on the basis of
gender, religion, race, ethnicity, nationality, physical disability or age.
• EL AL recognizes the advantages of providing equal opportunities in the
workplace, from a business aspect – while affording employees the opportunity
to apply their personal potentials and talents to the fullest – as well as from
moral and social perspectives.
• The management of EL AL is committed to the promotion and incorporation of
this policy in all levels and fields of operation, while monitoring its execution.
In order to promote the assimilation of this policy, EL AL takes the following measures:
• Analyzing and mapping employee recruitment, screening, hiring and promotion
processes.
• Collaborations with skilled factors regarding multi-cultural employment, such
as social organizations.
In order to recruit and support the hiring of employees from populations
characterized by underrepresentation in the employment market, EL AL has taken
several steps, including the naming of a Diversity Officer in its human resources
department, making adaptations to screening processes for potential employees,
developing connections with organizations that specialize in the recruitment and
inclusion of employees from these populations and more.
Integrating Employees with Special Needs
EL AL continues the operation of its program enabling the inclusion of employees
with special needs in the team responsible for seating passengers in aircraft
luxury classes, a role thus far undertaken by ground attendants. For this end, the
Company attends to all workplace adaptations required – both physical and non-
physical (such as adjusting role requirements, working hours, pre-employment
screening etc.). The project went underway with the assistance and support of
the Ministry for Economy and JDC-Israel. As well as assisting people with special
needs, the Company is rewarded by having responsible employees, who are
committed to providing qualitative and professional service, offering maturity and
life experience.
67
G4-26 Dialog with Employees
The Company management attributes great importance to ongoing dialog with
G4-27
employees, which holds the potential for improving work processes and efficiency,
as well as promoting a pleasant and respectful working environment. The
discourse with our employees takes place on varied occasions and by diverse
means, including:
• Ongoing conversations in Company units. • Information screens are positioned throughout the Company campus,
presenting information on professional subjects, welfare issues, benefits for
• A company-wide service survey is conducted once a year among employees,
Company employees and social matters. In 2014 such screens were also
to gather feedback on the activity and effectiveness of internal mechanisms
placed in EL AL representation offices in New York, London and Paris.
and different units that serve employees. Additionally, a service satisfaction
survey by the human resources and administration division is held quarterly. • A letter from the CEO is sent as needed, in order to update Company
In 2016 the Company intends, for the first time, to publish the results of the personnel about occurrences, special events and financial reports. The letter
survey conducted in 2015, and to announce the steps it is taking in light of is translated to English and delivered to employees around the world.
the outcomes.
• As part of the intra-organizational communication at EL AL, an organizational
• In employee conferences held at least once a year, the management presents newsletter it sent monthly to all Company employees, in Israel and the world,
major organizational and business developments. in Hebrew and English, including a message from the CEO as well as updates
about events and activities that took place during that month. Additionally, as
• CEO meetings are held regularly with unit representatives, for them to voice
of 2015, we are issuing the "ELAL Newscast", which reviews occurrences and
their opinions and positions on different organizational issues.
significant events in the life of the Company.
• "Tafnit" is a computerized system enabling employees to anonymously
The information sent to employees covers the entirety of Company activities in
report or ask questions regarding any organizational issue. The distribution
its different fields of operation, with emphasis on employee involvement in these
by subject of received inquiries is presently unavailable through the system,
processes and a desire to share and update employees about Company affairs.
however during 2016-2017 we intend to assimilate a new system featuring the
presentation of such information. The employee ombudswoman is available to our employees, and there is also an
anonymous email account which employees can use to address management.
• An intra-organizational portal containing up-to-date information on a great
Additionally, appeals can be made to the Company's internal auditor according
variety of issues is used for constant updating of employees.
to need.

68
In December 2015 a first meeting of its Feedback, Evaluation and Appreciation
kind - "A Circle of Growth" - was held
in EL AL's headquarters, initiated by An evaluation and feedback process is held annually for all EL AL employees,
Maagalim Fund and Globes, a business because we understand it has substantial importance for the professional
news outlet. The meeting, hosted by the development of employees. The feedback process addresses, among other things,
Company, addressed current affairs in professional conduct, meeting targets, levels of commitment and responsibility,
employment and hiring. The discussion cooperation and teamwork, as well as issues such as creativity, personal initiative
was moderated by Globes Editor in Chief, and potential. Furthermore, the feedback also refers to additional values included
and participants included EL AL CEO,
Tamar Matsafi | Globes in the ethics code, such as integrity and trust.
Chair of Maagalim Fund, Chair of the Manufacturers' Association of Israel, Chair of In 2015, 92.45% of Company employees have undergone a feedback and G4
LA11
the Histadrut –Israel's organization of trade unions, EL AL Chief Human Resources evaluation process, compared with 90.20% in 2014.
and Administration Officer and Chair of the representation of Company employees.
It is also important for us at EL AL to cherish employees who have made special
Company employees were invited to the event, and a dialog transpired between
contributions to the success of the Company during the year and who represent
employees and panelists.
role models for imitation and appreciation. Once a year, in keeping with Company
tradition, employees and managers nominate their peers and subordinates as
candidates for the Outstanding Employee Award. Their suggestions are examined
by a special committee that selects the exceptional employees from among them,
and they receive certificates of appreciation and an award. Out of these excelling
employees, ten are selected to receive the CEO Excel Awards, and from these,
the most outstanding is selected for special recognition and appreciation awarded
at an event held at the Residence of the President of Israel.

92.45%
During 2015

of our employees underwent a

feedback and evaluation process
Opening of "EL AL Newscast"

69
 G4
DMA
Employee Training and Instruction
G4
EL AL conducts training courses in accordance to requirements defined by the The following data includes the average6 training hours per trainee, excluding LA9
applicable regulations, and holds additional training for employees from different basic training courses, according to training subject7:
professions and departments, while emphasizing the development of both
professional and personal capabilities of employees. Training programs are Training Subject 2014 2015
planned to correspond to the needs of the employee's division, and additional
Air operations – aircrew personnel 13 23
courses are intended for all Company personnel.
In order to train and instruct our employees, we operate a training center that Operations (safety + control center) 11.5 6.5
educates and qualifies our employees for many of the professions required at EL
Cargo 5 19
AL, including civil aviation courses and the transition of aviators from one fleet to
another; aircraft mechanics and maintenance; customer service courses for call- Inflight service 21 16
center employees; and flight and ground attendant courses. We further train our
employees for sales, administration, safety and other general issues. Ground service 5.5 8
EL AL training hours are measured by training subjects, distinguishing between Service (call center) 9 8
basic and non-basic courses, and between instruction required by regulation and
training conducted for professional and personal development. Commercial (Israel branch) 7 11

Maintenance 11 14

Administration (building, transportation & firefighting) 4 4

General (computing and seminars) for all
16 7
Company employees
Management courses - intended for all
30 44
Company employees

Expressing recognition for outstanding employees from the service division and the HR & Administration Division
Total 12 13.5

6 Training and development including those required by regulation.

7 Total training hours divided by number of trainees.

70
It should be noted that in addition to the abovementioned, thousands of employees
in Israel and hundreds in the representation offices overseas undertake e-learning
on a variety of subjects, in lieu of frontal training courses. In 2015, the training
department taught 26,201 hours by computerized tutorials, compared to 26,926
hours in 2014. The primary reason for the decrease is explained by regulatory
maintenance tutorials undertaken in 2014, which are required once every two years.
Get to Know EL AL
Recently EL AL's training and organizational development department launched an
orientation day for new Company employees dubbed "Know EL AL". On this day,
employees are introduced to the organization and its various operations, and get
an experiential tour of the Company campus. At the end of the day, new employees
emerge with more extensive knowledge about the Company as well as their rights
and duties as employees. Orientation days are held monthly.
Additionally, as part of orientation day, new employees undergo safety training
and instruction regarding the Company's ethics code and the prevention of
sexual harassment.
EL AL Online Learning Site
We take pride in our renewed e-learning site, which was recently launched with
a new contemporary design, under the leadership of the department for learning
technologies. The website's new line features an advanced graphic and visual
design, in response to various needs that have emerged in recent years. Thus
the site was adapted for tablet-computers, and an archive of tutorials was formed,
enabling search of e-learning courses taken by year, including the date in which
the tutorial was taken and the grade given. This development delivers a user-
friendly experience, elevating the quality of service provided to employees by
having transparent and available information; and at the same time, it provides
technological tools of monitoring and control that facilitate the requirements for civil
aviation authority licensing, accreditation or intake of employees, which necessitate
regulatory tutorials.
The extent of e-learning site users is expanding from day to day, according to
different needs that emerge from company divisions, regarding the preservation of
knowledge and frequently evolving new contents.
Development and Empowerment of Employees G4
LA10
and Managers
In 2015 we have made notable investments in cultivating our human capital and
developing the Company's managerial core. In addition to training and instructions
intended to provide our employees with tools for personal and professional
development, we focused efforts on the progression and empowerment of
Company employees and managers; on generating opportunities for advancement
and transition between roles; and on growing a robust and committed managerial
core in the Company. We believe that investing in our employees and managers
nurtures qualitative personnel who are committed to the Company, and in turn we
are committed to continue working this way in the future as well.
In general, professional and personal development courses and seminars in 2015
were intended for senior and mid-level managers. In 2016 we plan to extend training
to junior levels, including temporary employees.
Internal Job Tenders
One of the ways to retaining our human capital is by creating tracks for advancement
within the Company. Therefore, when a position becomes available in one of the
units in the Company, an internal job tender is published and distributed to company
employees via the intranet portal and notice boards. The names of employees
selected for these positions are announced in the organizational portal and on
71
the screens. In 2014, 177 internal job tenders and 42 positions to be staffed from
among employees needless of a tender were published, and in 2015, 153 tenders
and 24 positions as mentioned were published.
Workshops and Courses for Managers
In 2015, we have invested enhanced resources in the development of managers in
different levels within the Company, by means of various workshops and courses
that enrich our managers with knowledge of advanced techniques and management
tools and assist them in developing personal skills and systematic vision, while
developing interactions and the exchange of knowledge.
• A company-wide middle-management course is an affluent and challenging
course in terms of its taught contents and the interfaces it generates between
personnel from different divisions. The course includes ten weekly meetings
and addresses an array of management skills.
• The course designated for maintenance and engineering division middle-
management ended with presentations to the management of the division
by course graduates, of their final projects on issues related to savings and
efficiency. These projects will be further explored for future implementation.
• Acting workshops for managers ranked as deputy heads of department went
underway during the second half of 2015. Through acting the managers
express higher awareness to the management skills required of them, and
are invited to practice self-reflection – all in a challenging and fun way. The
workshops were deemed a success by participants and are planned to be held
in the future as well.
• Boeing workshops to customer department managers were held in May
2015. The workshops focused on a number of issues related to the world of
aviation, such as ways of increasing sales, understanding customer needs and
72
emphasizing EL AL's advantages compared to its competitors. The workshops
contributed to strengthening the sense of belonging, unity and interchange
among department managers, and received sweeping enthusiastic responses.
• "Shhakim – Skies" EL AL Campus for management professions was launched
in 2015. The program, which is managed by the Company's training and
organizational development department, includes a large number of courses
addressing expansive and comprehensive contents. The array of courses is
planned so as to enable a large number of Company employees to participate
in them, and gain exposure to the variety of new perceptions and contemporary
trends in management.
• "Movilim - Leaders" Course is the most prestigious and high-level management
course, and the first of its kind to be conducted by EL AL. The unique course
program integrates management and professional training, while accomplishing
assignments in the work environment. On this course, participants acquire
managerial skills, lead strategic projects for the organization and partake in
significant processes.
2015 Movilim-Leaders Senior Management Course Graduates
• A number of seminars for inflight service managers were held early in 2015.
The meetings were held at Kfar Maccabia and included a conversation with the
director of the service division, an external lecture addressing sales skills and
interactions in the cabin, as well as instructions regarding EL AL's relicensing.
This type of meeting that had become a tradition in the past few years, is an
excellent opportunity for an unmediated meeting between field managers
and head office personnel and a chance to conduct a fascinating and prolific
professional dialog.
We intend to continue offering these courses to our managers in the future, in order
to adapt ourselves to new business realities and to the many dynamic challenges
they present to our management.
International Women's Day at EL AL
On International Women's Day, a gift was given to each female employee, and
various lectures were held: a lecture about women's empowerment by EL AL
employee and ultra-runner Galit Birenboim-Navon; a lecture by Prof. Lior Heller
about the history of beauty and updates in facial design in the 21st century; and
finally a lecture by Galia Toren Hen, the host of TV show "The Beauty Dictionary",
who gave makeup, grooming and perfuming tips.
Maintaining the Rights and Welfare of Employees
EL AL spares no effort in imparting an appropriate and rewarding working
environment for its employees and has no tolerance for discrimination or any form
of infringements of their rights.
Employee Rights and Freedom of Association
At EL AL we endorse complete freedom of association, and the workers union
has been active since the Company's early days. EL AL has an active workers'
committee that represents employees, respective to the different sectors to which
they belong, before the management of the Company.
In July 2015, a special interim agreement was signed, provisional until a new
collective agreement is reached for the years 2015-2018, providing employees with
a sense of security. In addition to a pay rise, it also stipulates higher remuneration
when the Company is more profitable.
In this context it should be mentioned that during 2015, negotiations were conducted
between management and representatives of the pilots in the Company, with regard
to updating of directives in the collective agreement pertinent to the aviators sector,
however the parties are yet to reach understandings.
During 2014-2015 no verdicts were given to either acquit or convict EL AL on work
relations issues.
Employee Welfare G4
LA2
Our perception of home at EL AL includes our commitment to sustaining a supportive
working environment, caring for employee welfare and enabling integration and
balance between work and family life and recreation, in order to retain employees
in the Company with a sense of belonging and contentment. In order to ensure
this, in addition to the social benefits employees are entitled to by law, we offer our
employees an additional benefits package, which is also anchored in the collective
agreements, and includes:
• A possibility for accumulating vacation days
• Parents to children under 12 may finish the work day one hour earlier during
July and August (school summer vacation), subject to their manager's approval.
• Marriage leave and family leave for family events, such as the wedding of an
employee's child, the birth of an employee's child, the day of the circumcision (Brit).
73
• Organized vacations, either paid or unpaid, at the same time as school
and kindergarten vacations (for instance during August), in order to ease
circumstances for employees who parent children in these ages.
• Possibility for a "parent job" - shortened working hours for mothers (beyond
legal requirements) subsidized by the Company.
• Coordinating annual vacations in advance, as much as possible, in accordance
with the employees' needs.
• Option of taking up to a year of unpaid leave, subject to the approval of superiors.
• Commuting transportation arrangements, including special transportation for
mothers, taking their flexible working hours into consideration.
• A range of events for employee families during holidays and school vacations
every year.
• Subsidizing camps for children of employees during kindergarten and school breakfast, lunch, dinner and late night meals. Showers are available for the use
holidays. Additionally, in the past two years we have been holding a 10 day of shift workers and vending machines are located throughout and around the
summer camp on Company campus, for children of employees starting 1st-4th offices, stocked with sandwiches and hot and cold beverages.
grade. The camp includes varied contents, plays and activities. By holding the
• Arrangements are set for discounts on plane tickets for employees and their
camp on campus, our employees can carry on with their usual work during
families.
this time, and the children connect to their parents' workplace. The camp is
conducted by an external Company with the assistance of older children of • Children of employees starting first grade are equipped with gift sets for their
employees, under the supervision of the HR department. first day of school. Additionally, once a year a large event is held for children of
employees about to join the army.
• Extensive support and assistance by varying means extended to employees
who encounter distress, with the aid of the Company's social worker, including • Social events and departmental team building activities are held.
by means of loans and advances on salary. During 2016 we will be exploring an option for a telecommuting pilot, enabling
• The Company campus accommodates a gym available for the use of customer service call-center employees to work remotely from home.
employees, and break rooms to be used by employees working in shifts. Dining
rooms are open 24 hours a day and cater to employees (as entitled) offering

74
G4
LA3
Parental Leave
The return of employees from parental leave to resume their normal work routines
often involves difficulties and complexities. At EL AL we understand these situations,
and enable parents who are interested to ease the process by a gradual return from
their parental leave. During the first year following the birth of an employee's child,
the parent is sanctioned a shortened work day, which is partially subsidized be the
Company.
During 2014-2015, this was the distribution of employees on parental leave:

2014 2015
We participated in tuition expenses We participated in tuition expenses
for undergraduate degrees of for undergraduate degrees of
Female Male Female Male 21 employees 27 employees
employees employees employees employees and graduate degrees of and graduate degrees of

29 32
8 employees 5 employees
Ground 86 1 113 0

Air 47 1 44 4

2014 2015
The vast majority of employees who took parental leave have returned to work.

Care for Retiring Employees Encouraging Higher Education G4

LA2

Prior to their retirement, we conduct a five-day workshop for employees and
their spouses, to prepare them for retirement. Additionally, the EL AL veterans'
organization cares for retirees, helps them with their needs and is supported by the
Company. In the past year a retirement department was established under the HR
administration, which supports and advises employees regularly on the way to their
retirement. Our retiring employees are granted various benefits from the company
as well as adjustment grants.
Since we recognize the importance of acquiring higher education as a condition
for inclusion, development and excellence in today's job market, we support
employees and managers who are interested in completing their studies for
undergraduate and graduate degrees, by Company funded either partial or full
tuition subsidies. Decisions regarding whether to fund the tuition of an employee
or manager, as well as the level of subsidy given, are made according to uniform
and transparent criteria.

75
Fun Days and Sporting Events
The company holds Spring Olympics once a year, featuring a variety of sporting
events. Teams of employees from the different divisions compete with each other,
and three teams reach the finals. The event is launched by the CEO in a goal kick,
and employees from different company divisions come to the games to cheer their
teams on. The sporting event is held during working hours and integrates work with
The people of EL AL at the 2015 Spring Olympics | Sharon Ohad
a healthy lifestyle.
In addition to events organized by the Company, EL AL employees also participate
in national sporting events. Thus, for instance, in the 35th "Sportiada" held in
Eilat, in which thousands of employees from workplaces throughout the country
participated, EL AL had an impressive representation of 100 athletes from various
EL AL teams. Our athletes accomplished respectable achievements. We are proud
of our representatives for their sportsmanship and their determination to win, and
we will continue to encourage athletic activities that contribute to the health of body
and mind of our employees, as well as their sense of belonging to the EL AL family.
We would further like to mention Galit Birenboim-Navon of our running team, who
has won the first stadium marathon in Israel.

Events for Employees and their Families

Once a year we conduct a festive event for Company employees and their families,
and in keeping with tradition we meticulously note Israel's holidays by holding
special events in the Company.

76
 Prevention of Sexual Harassment
All of us at EL AL are committed to the creation of a working environment free
from any kind of aggravation, maltreatment or harassment, including sexual
harassment. The officer in charge of the issue in the Company is the Director of
Employee Relations, and employees are invited to approach her with reports,
questions or complaints.
• The head of the safety and quality department, who is responsible for
A protocol for sexual harassment prevention is distributed to all Company employees
coordinating the issue and reports directly to the CEO.
and is published throughout the Company, in accordance with instructions defined
by the Prevention of Sexual Harassment Law. Additionally, a designated tutorial • Flight and ground safety managers.
regarding the instructions of the protocol was developed for employee training,
• Head of the department for safety inspections.
which employees are required to undertake from time to time.
• The supreme safety committee, which convenes monthly, headed by the CEO.
In 2014, 1,175 employees have taken the sexual harassment prevention tutorial,
and in 2015 – 799 employees. • Operations safety committee, with half of its members are members of- or
appointed by the employees' committee.
During 2015 a number of complaints were reported with regard to sexual
harassment. Each of these reports was investigated with the plaintiff, the accused • Divisional safety committees, addressing issues relevant to each division.
and any witnesses, such as there were. In accordance with the findings of these • Safety officers in the different units. G4
LA5
investigations, it was decided to conclude treatment of the complaints without
As abovementioned, since 2012 we have been using the Aviation Quality Database
taking any additional measures.
(AQD) system and the Safety Management System (SMS), and they also facilitate
the management of employee safety, work accidents and "near miss" events.
G4
DMA Employee Health and Safety We recognize a direct link between the involvement of employees in safety issues
Every year we set ourselves objectives in the issue of safety. Every work procedure at and the culture of safety in the Company, as demonstrated by working in accordance
EL AL has safety guidelines, documented either in the Company's safety instructions with regulations and instructions. We therefore dedicate many hours to training
(The Safety Book) or in professional literature. The rigor in upholding employee and instructions on safety issues in the Company. Additionally, every year EL AL
safety is expressed in various ways, including: constant safety checks, safety patrols, traditionally holds a Safety Day, with presentations on the issue and experiential
reviews and surveys, mapping of disparities, external expert reports and inspections events intended to emphasize its significance. The day concludes with a ceremony
and so forth. These are conducted by a number of responsible factors: for outstanding safety achievements.

77
 Main Safety Achievements in 2015
G4 • We have assimilated a risk management process in the professional
LA6
departments and a superior risk management committee was established,
headed by the Chief Operations Officer.
• Some 50 reviewers have been qualified and eight safety reviews were
conducted in the Company.
• We have improved safety measures for working in heights.
• We have improved the procedures of upholding safety when hiring contractors.
Although we spare no effort in their prevention, work accidents occasionally occur.

Ground sector Air sector (attendants only) At EL AL we also emphasize the issue of road safety, which falls under the
responsibility of the Company's Transport Safety Officer. We continuously curtail
Year 2014 2015 2014 2015 the use of hazardous substances to a necessary minimum, seek alternative
engineering solutions that would reduce safety risks, and at the same time provide
Total number
of work 86 86 16 26 our employees with the best protective gear for working safely. Employees in
accidents roles that expose them to potential harm and risks, including maintenance division
Total loss of employees, Israel station department employees and cargo officers, are referred
work days
1,719 1,973 312 272
to periodical designated medical examinations.
Data in the table relates to accidents resulting in the absence of more than one working day, and which
occurred on Company campus only, excluding car accidents on the commute to or from work.

78
Healthy Nutrition in the Dining Rooms
In 2015, a "health food track" opened in our dining rooms, enabling employees
to choose a healthy meal option for their lunch, in addition to the ongoing
activities conducted by the chef to provide healthy, low-fat and low-sodium option.
Additionally, every Monday, as part of the Meatless Monday initiative, a vegetarian
alternative is offered to those interested.

"EL AL was one of the first companies in Israel

to wisely adopt the Meatless Monday Initiative.
We congratulate the company's commitment to
care for the health of its employees and to the
environmental sustainability."
Miki Haimovich, Founder of Meatless Monday Israel

EL AL Health Month
Every year we hold a Health Month at EL AL, during which we conduct a variety
of lectures and enrichment activities to promote our employees' health: child
nutrition, work-life balance, bone building exercises, ergonomics and nutrition
according to one's biological clock, sports injuries and so forth. The diversity of
subjects enables employees to selects the ones that are of interest to them and
relevant for them and their lifestyles.

79
 Running Hula Hoop
730 kcal/hr 290 kcal/hr
680 kcal/hr 370 kcal/hr

Promoting Awareness for a Healthy Lifestyle

We routinely offer our employees health workshops to maintain a healthy lifestyle
Weight Lifting Swimming
and prevent serious illness. Thus, for example, we conduct smoking prevention
workshops, Weight Watcher groups accompanied by professional instruction, offer 800 kcal/hr
participation in the workplace sports leagues, the "Spring Olympics" for Company 710 kcal/hr
employees and so forth. 370 kcal/hr

We provide a fully accessorized gym on Company campus for the use of employees,
300 kcal/hr
as well as break rooms for employees working in shifts.
We encourage our employees to get tested regularly, and fund periodic medical Bicycling Yoga
examinations once a year for every employee over the age of 35.
615 kcal/hr 150 kcal/hr
G4
Sick Leave Taken in the Company During 2014-2015 (Days)
LA6 470 kcal/hr 190 kcal/hr
Flight
Sector Ground crew Aircrew Total
attendants

2014 77,042 15,977 11,033 104,052

Tennis Jump Rope
2015 76,242 17,434 12,121 105,797
480 kcal/hr 851 kcal/hr
630 kcal/hr 720 kcal/hr

kcal/hr = kilo calories per hour. Values presented are averages and will alter by exerciser, terrain and environmental conditions.
Before any physical activity it is recommended to consult with professionals and in some cases it is advisable to obtain a medical certificate.

80
 Our

5 Environmental
Responsibility
EL AL for the Environment

81
 Environmental Responsibility
G4
DMA
The Management Approach
Humanity contends with a series of environmental challenges that affect us all – This management approach is expressed by monitoring the entirety of emissions
climate change, pollution of water sources, depletion of natural resources and so to the environment resulting from our activity, and measuring the amount of non-
forth. This effort has led and continues to lead the international community and renewable resources required for this activity, in order to mitigate their extent.
countries of the word to take substantial steps, including the adoption of principles Additionally, steps are taken to prevent environmental hazards, while adhering
and rules by means of international treaties and local-national legislation. Such to Israeli and international environmental regulations, as well as taking action
steps do not disregard the aviation sector, considering its operations have beyond regulatory compliance requirements.
significant environmental impacts.
Therefore, as stated in our sustainability policy: "We operate in cooperation with other
At EL AL we are aware of the direct and indirect impacts that our business entities to ensure sustainable aviation in Israel, from the understanding that Earth's
and operational activities have on the environment, especially considering the natural resources are commons and should be preserved for future generations".
constantly increasing demand for flights. We consider environmental protection,
mitigation of our environmental impacts and the improvement of our environmental
performances to be our long term objectives.

82
G4-14 Environmental Management Reducing Greenhouse Gas Emissions G4
DMA
We devote much effort to minimizing the environmental impacts of our ground Most of the Company's greenhouse gas (GHG) emissions result from its aerial
operations. As part of these efforts, inspections are conducted regularly to operations. The source of other emissions is from ground operations at the BGN
identify major processes and analyze their environmental aspects. During 2015, Airport Company campus. Most ground based emissions result from vehicular
an extensive survey was conducted to examine Company operations vis-à-vis fuel consumption and electricity consumption.
the environmental legal requirements at the hydraulic facility. The survey was
The following table details total emissions by the Company. The consequent
conducted as part of the Business Licensing Law requirements. In the facility,
graph features the distribution by percentages of emission sources, whereas
hydroelectric equipment and different machinery parts are treated and washed.
aerial operations are divided between flights to and from Europe and those to
The survey covered aspects including focal emission sources (chimneys) and
the rest of the world, due to the EU-ETS reporting mechanism as will be further
non-focal ones (sewage tanks and cleaning facilities) and the types of pollutants
explained hereinafter.
emitted from these sources.
G4
Greenhouse Gas Emissions: Air and Ground Operations 2013-2015 (ton CO2e) EN15
Additionally, in 2015 a "chimney survey" of the workshops was conducted. The
survey aimed to examine disparities and the efficacy of the filters. The corrections G4
2013 2014 2015 EN16
of the faults discovered (heightening of existing chimneys or installing new ones)
is planned for 2016. By the end of the year, sampling of air pollutants emitted from Scope 1:
the chimneys and the monitoring of emissions will become possible. Direct emissions resulting from the
2,150,878 2,184,693 2,289,213
consumption of jet fuel on all EL AL
During excavation works required as part of operations for the replacement of gates flights (including to and from Europe)
in hangar 2, soil pollution was discovered, resulting from spill events. According Scope 1:
to the instructions of the Ministry of Environmental Protection, contaminated soil Fuel consumption for transportation 4,307 4,551 4,521
and heating in ground activity
was removed to Ramat Hovav. In 2016 we are planning a process of composing
environmental protocols that will include master-procedures defining allocation Scope 2:
15,281 13,252 312
Electricity consumption
of responsibilities.
Total carbon footprint 2,170,466 2,202,496 2,307,930

The noticeable increase in GHG emissions results primarily from an increase in jet
fuel consumption, emanating from the growth in the number of flights conducted
between 2015 and 2013.

83
 Reducing Jet Fuel Use and GHG Emissions G4
DMA
As an airline, most of our GHG emissions result from aerial operations. Therefore, G4
we have taken diverse actions in recent years to minimize our consumption of EN15

jet fuels. Our fuel consumption would have been higher had we not taken these
steps, and consequently, so would our total GHG emissions.

16000 When selecting measures to improve the efficiency of our use of jet fuels, our
approach is to administer steps that would be acceptable and possible for
14000
14196 Greenhouse Gas Emissions from implementation by all parties concerned in general and pilots in particular, while
Ground Activity 2015 (CO2e) raising the awareness of the entire system and staff involved with flights about
12000
objective circumstances that might generate increased fuel consumption.
10000 The targets set for each of the measures intended for jet fuel consumption saving,
are calculated a year ahead of the start of execution of the process, compared to
8000
the previous year's status. Targets are determined by estimates and a theoretical
6000 analysis of any changes to aircraft operation procedures and to the ground
operations and aircraft loading procedures.
4000
2948 For 2015, the execution of the following and additional measures was decided upon:
2000 • Changing the criteria for reaching cruising altitude for 737 aircraft.
850 723 • Changing post-landing aircraft operating procedures for 747 aircraft.
Electricity Fuel for Diesel for Mazut & diesel
transportation transportation for Heating • Changing procedures for taxiing for 747 aircraft.

It is clearly noticeable that the primary source of GHG emissions in our ground • Closer secondary airports for the 777 aircraft fleet.
operations results from electricity consumption. These and additional measures generated a reduction of 8,615 GHG tons (CO2e).

84
G4-15 EU-ETS GHG Emissions Reporting Mechanism surpassing the GHG emissions cap resulting from flights to and from Europe, the
EU parliament had decided that airlines operating in Europe will receive GHG
EL AL considers climate change to be a human and business challenge of emission allowances only for their internal flights in EU countries, as of 2014 and
the highest degree. Out of this outlook and our commitment to the laws and still applicable today. An additional possibility being considered by the Europeans
regulations of the European Union with regard to GHG emissions in the civil is that GHG emissions of aircraft will be measured from the minute they enter EU
aviation sector, we have joined the European Union Emissions Trading System – member countries' airspace until they depart it.
EU-ETS in 2010, its pilot year of operation. This EU mechanism was established to
determine economic indemnification for deviation or mitigation of GHG emissions Since a decision has not yet been made regarding the methodology of measurement,
resulting from aerial activity, in a cap and trade system. In this framework, EL AL charge and exceeding allowances, we are preparing for all contingencies.
and all airlines flying to and from Europe receive an emission allowance, covering GHG Emissions from European Flights Reported to EU-ETS (2013-2015) G4
EN15
a share of their total flights, within which they can trade. If actual emissions of
an airline are lower than its determined cap, it can sell off the surplus in the GHG Emissions (Ton CO2e)
Year EU-ETS Related Actions
Reported to EU-ETS
emissions trading system, or hold on to the remainder to cover future emissions;
Payment for exceeding the cap was
an airline that anticipates its emissions to exceed the cap, can take measures 2013 838,074 postponed while waiting for the European
to minimize emissions, or buy additional emission allowances in the European Parliament's decision.
emissions trading system. In accordance with the decision by European
authorities capping internal flights only, EL AL
In 2012, the International Civil Aviation Organization (ICAO) decided to construct 2014 804,482
paid a fine for exceeding its allowances only
a global plan for the mitigation and monitoring of greenhouse gas emissions in the for the intra-European flights it executed.
civil aviation sector. According to this decision, all members of the organization were
EL AL paid a fine for exceeding its allowances
called to submit suggestions on the subject by the end of 2015, to be implemented 2015 869,806
only for the intra-European flights it executed.
by 2020. Following this decision, EU-ETS authorities took a "Stop the Clock"
approach, which postpones the original mechanism that measures total emissions
2015
by airlines flying to and from Europe, and only measuring the emissions generated
by intra-European flights (which depart and arrive in European airports), considering
2013
869,806
such flights are clearly under the jurisdiction of the EU and are undisputed. 838,074 2014

In 2013, EL AL submitted two reports to the EU-ETS; one abridged report, 804,482
referring only to internal flights between European airports by Company
aircraft, and another full report of all EL AL flight from BGN Airport to Europe
and from Europe to BGN. Following international opposition to the payments for

85
 G4
DMA Reducing Electricity and Fuel Consumption in
G4 Ground Operations
EN3
In 2015 there was a 5.89% growth in our electricity consumption compared to
2014. This growth resulted from an increased use of the air-conditioning systems
due to higher environmental temperatures (approximately 1oc higher than 2014).
A second reason is the addition of built-up and air conditioned work spaces in
The increase in fuel oil consumption can be explained by water penetration to 2
the EL AL campus at BGN Airport, in conjunction with a decline in equipment
underground water tanks, which required the removal of about 35,000 liters of
efficiency due to aging.
polluted fuel oil. Additionally, the burner's heating system and a decayed steam
In 2015 we continued to execute energy efficiency projects in the Company conductor pipe at the Tamam facility have been replaced.
campus, such as bettering the cooling systems, which included replacement of
condensers and carburetors and system enhancement, including the purchase
Water and Sewage
of a new chiller and the specification of a protocol for turning off inactive systems Sanitary sewage from EL AL campus is diverted to the Airport Authority's central
on Saturdays at the TAMAM site; however ground operations increases at the wastewater treatment plant at BGN Airport. Industrial wastewater are diverted for
same time. responsible treatment.
Electricity Consumption (kWh) and Fuels (Liter) in Ground Operations 2013-15 Water and Waste Data (cubic meter) 2013-15

Light mazut Diesel Diesel Gasoline

Year Electricity GJ Year Water consumption Sanitary wastewater Industrial wastewater
(fuel oil) fuel transportation transportation

2013 173,667 3,520* 1,065,591 359,695 19,516,240 130,541 2013 141,696 76,747 Not measured

2014 184,523 10,006 1,029,273 347,308 19,267,920 128,602 2014 124,480 84,426 215.71

2015 235,489 0 1,073,560 363,725 20,402,800 136,748 2015 130,000 79,648 117.4

G4-22 * Our previous CSR report mentions that in 2013 the diesel fuel consumption * Water consumption data only includes water
from the national system.
was 600 liters. The erroneous data resulted from a different measurement for
2013. The data in the table above is the correct data.

86
 Paper Saving
Using iPads Instead of Paper: In 2016, the Airport Authority intends to place recycling bins in aircraft hangars,
which would enable distribution of waste to 4 types: oils and rags (to be emptied
As mentioned in "Our Passengers" section of this report, our computing by EL AL); screws and metals; solid waste; absorbing sand scattered in case of
division has developed an application serving flight service managers oils pill incidents.
that collects and presents all relevant information about passengers,
the aircraft and the flight itself, in an accessible and convenient Hazardous Waste 2013-15
manner. This information was previously available to flight managers as Measuring
paperwork, and the use of the app results in substantial paper saving. Type
Unit
2013 2014 2015

Our aviators also make increasingly more use of iPads, which enables the Oil filters Kg 2,160 1,480 1,920
elimination of printed aircraft literature (flight handbooks, navigation maps, flight
briefings etc.), and thus to also contribute to aircraft weight reduction, saving on Contaminated packages Kg 91,090 84,990 42,760
fuel consumption.
DTMS System Paint Liter 10,200 8,250 6,108

The Duty Travel Management System (DTMS) replaces the manual duty travel
Organic substances Liter 4,050 7,880 3,673
system, which was based on printed documents. Since the system went online,
it was fed by some 1,200 travel commands. Each uploaded command in manual
Paint sludge Liter 4,920 3,300 2,440
form covered about 5 pages, amounting to a total of 6,000 pages saved.

G4
DMA Waste Liquid acid Liter 8,200 18,771 18,775

G4 In recent years we have taken a number of major steps to reduce waste quantities: Medication to be destroyed Liter 400 1,160 160
EN23

G4
• Placing orange bins for oil cans and oily rags in all aircraft parking areas.
EN25 Emulsion (water+oil) Liter 12,700 241,200 233,400
• Byproducts from the different workshops (copper, iron and aluminum) are
sent to recycling.
Fluorescent (bulbs) Liter 3,900 1,200 2,330
• By the initiative of our subsidiary Tamam, reusable dishes were also
introduced to Economy Class meals on EL AL flights, to reduce the extent of Paint-contaminated rags Liter 1,400 8,700 1,200
waste on flights.

87
* Types of waste include hazardous waste, electronic waste and solid waste for
burial and for recycling, plastic.
* In order to maintain continuity of reporting on major types of hazardous waste,
some types of waste resulting from EL AL activity are not reported, because they
are not produced consistently, such as: paint powder, cyanide, glue saturated
cloth, chromatic rinse water, paint filters, oil filters, sprays, oxygen generators
and batteries.
In accordance with the Electronic Waste Law, an agreement was signed with
the MAI Electronics Recycling Corp., and its executing contractor, AllTrade Co.,
vacates electronic and other types of waste, as follows:
Weight of Waste Types in 2015 (Kg) Weight of Waste 2014-2015 (Ton)

Type 2015 Type 2015 Type of waste 2014 2015

Wood and plastic waste 27,303 Second rate copper 35 Solid waste 1,809 2,040

Electronic waste 8,449 CRT monitor 968 Yard waste, wooden pallets and crates 80 82

Iron 48,642 Engine 13 Plastic bottles 3.4 4.4

Clean aluminum 6,132 Lights 26

Dirty aluminum 15,116 PSU (Power supply unit) 36

Clean copper 125 Tires 13,600

Measuring these types of waste only began in 2015.

88
 G4
SO2
Noise Prevention
EL AL's general flight protocols respond to and comply with all requirements
addressing noise in airports around the world in which it operates. Additionally,
there are specific noise protocols intending to respond to noise limitations at
airports in which the general protocols do not suffice. The protocols include clear
guidelines for performance of the horizontal and vertical profiles of the flight, as
well as the heights of transition from ascending power to elevation power and the
manner of folding the tow. As they approach landing, we guide our pilots to lower
tow (wheels and landing gear) as late as possible in order to alleviate the noise
hazard for residents who live in close proximity to the final approach path, and to
operate the Auxiliary Power Unit (APU) as late as possible before the flight.

Airplane Pictures © 4X6zk

Employee Training
As part of the correction of faults identified by the environmental disparities report,
in 2015 we began a practice of environmental training for all Company employees,
by means of a tutorial encompassing the following environmental issues:
• Energy understanding the Company's sources of energy consumption, ways
of saving and efficiency in the use of air conditioning, electrical appliances
and the consuming of transportation fuels.
• Soil contamination understanding sources of soil pollution, the significance of
soil contamination, work instructions for the prevention of soil contamination,
treatment of oils pills.
• Hazardous materials definition of a hazardous material, location and treatment
of hazardous materials, familiarity with MSDS safety data sheets, hazardous
waste and types of treatment,
• Waste and recycling understanding waste sorting at the EL AL campus, ways
of reducing office waste, options and means of recycling waste on campus.
• Wastewater understanding sources of wastewater and means treatment at
BGN Airport by the Airport Authority.

89
6 Our Chosen Route
Corporate Governance | Ethics

90
 Corporate Governance
G4-34 Board of Directors
The Board of Directors is responsible for determining Company policy and As of 2015, on EL AL's Board of Directors there are:

3 3
supervises the performance and actions of the CEO. In order to ensure that the
Company conforms to any applicable legal requirements, we have developed
mechanisms and controls that aim to ensure compliance and the fulfillment of our
legal obligations, and to ensure that our conduct is directed by ethical codes and independent female
Board Members Board Members
standards as are customary in Israel and around the world. (two of them external)

54
The rules addressing the roles and authorities of the Board of Directors are

4
detailed in the statutes of its operation as well as in the enforcement protocol
and the "Conflict of interests for Board members" protocol, which intend to enable Board Members
Board members to perform their roles in an appropriate and effective manner, with with accounting The average age
no bias and in congruence with the public interest and the benefit of the Company. & financial expertise of board members
(two of them external)
In 2014 the Board held 21 meetings, and in 2015 – 18 meetings.
The Board can be approached in accordance with mechanisms determined by • Mr. Pinchas Ginsburg – with accounting and financial expertise
the Companies Law as well as internal Company procedures.
• Mr. Shlomo Hanael
G4
Composition of the Board
LA12 • Ms. Sofia Kimerling
Following are the names of Board members who served on the board as of
• Ms. Ruth Dahan (Portnoy) – Independent Director, with accounting and
December 31, 2015:
financial expertise
• Mr. Amikam Cohen – Chair
• Mr. Eyal Chaimovsky – External Director, with accounting and financial
• Ms. Tamar Moses Borovitz – Deputy Chair expertise
• Adv. Yehuda (Yudi) Levy – Deputy Chair • Mr. Eli Defes
• Prof. Yehoshua (Shuki) Shemer – External Director, with accounting and * During 2014, Mr Nadav Palti and Mr. Yair Rabinowitz (External Director) stopped
financial expertise serving as Members of the Board of Directors.

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 The role of a Board Member entails much responsibility, and for the purpose of
properly fulfilling the role, it is important that Board Members should have adequate
time, knowledge, experience, skills and expertise. Therefore, Board Members are
required to declare each time their appointments are renewed, that they have the
skills and time required to properly fulfill their roles. Furthermore, Board Members
declare that they are committed to report to the Chairman of the Board or the
CEO with regard to any matter, issue or incident, which do or might impair their
competence to continue serving as Members of the Company's Board of Directors.
Board Members participate, from time to time, in trainings on professional and
regulatory issues, by both internal and external factors to the Company.
The Company occasionally conducts training for new and existing Board Members,
on topics such as the Law of Securities, corporate governance, restrictive trade
practice, as well as on different subject that are relevant to their tenures as Company
Board Members. During 2015, a training day was held for Board Members, which
included lectures on pertinent issues to the roles of Board Members.
G4-34 Committees of the Board of Directors
Nine committees operate under the Company's Board of Directors, serving as the
long arm of the Board. The Board of Directors determines the responsibilities and
mandate of committees, and is entitled to delegate its own authorities to these
committees, with the exception of issues on which it is required to discuss and
decide, by law, in the presence of all Board Members. Committees are mandated
to determine and decide on issues that fall under their jurisdictions, except for
issues defined by the Companies Law or by the Company's Articles of Association
or by the statute of the Board of Directors that their role is only to discuss and
make recommendations to the Board.
92
• The Security Committee was established as instructed by the Articles of
Association of the Company and discusses security issues.
• The Corporate Governance Committee was established in accordance with
the instructions of the Company's internal enforcement plan regarding the
Securities Law and Companies Law. The committee is the responsible factor
on the Board level to oversee the implementation of the enforcement plan
on the subject of the Securities Law and Companies Law, as well as the
implantation plan with regard to the Restrictive Trade Practice Law. Additionally,
this committee also addresses corporate responsibility issues.
• The Personnel Committee discusses issues related to personnel in the Company.
• The Finance and Budgets Committee discusses and approves the Company’s
budget, and also discusses ad hoc issues of economic consequence.
• The Management of Market Risk Committee is responsible for defining and
updating Company policies on fuel hedging, foreign currencies and interest;
monitoring the implementation of these policies; and instructing or authorizing
the management of the Company to deviate from implementing the defined
policies according to need.
• The Government Relations and Regulations Committee discusses substantial
issues via-a-vis the Company's main regulators, significant legislation
amendments and substantial legal proceedings.
• The Executive Committee discusses various issues pertaining to the ongoing
management of the Company.
In addition to these, the Balance-Sheet Committee and the Audit and Remunerations
Committee are defined in composition and authorities by the Companies Law.
 Audit and Finance and Corporate Government
Balance-Sheet Security Personnel Managing Market Executive
Remunerations Budgets Governance Relations and
Committee Committee Committee Risks Committee Committee
Committee Committee Committee Regulations
Prof. Yehoshua Prof. Yehoshua Ruth Dahan Amikam Amikam Amikam Pinchas Amikam Amikam
(Shuki) Shemer (Shuki) Shemer (Portnoy) Cohen Cohen Cohen Ginsburg Cohen Cohen
(Chair) (Chair) (Chair) (Chair) (Chair) (Chair) (Chair) (Chair) (Chair)
Ruth Dahan Pinchas Prof. Yehoshua Yehuda (Yudi) Tamar Moses Tamar Moses Tamar Moses Tamar Moses
Sofia Kimerling
(Portnoy) Ginsburg (Shuki) Shemer Levy Borovitz Borovitz Borovitz Borovitz

Eyal Eyal Pinchas Prof. Yehoshua Yehuda (Yudi) Yehuda (Yudi) Yehuda (Yudi) Yehuda (Yudi) Yehuda (Yudi)
Chaimovsky Chaimovsky Ginsburg (Shuki) Shemer Levy Levy Levy Levy Levy

Eyal Prof. Yehoshua

Shlomo Hanael Shlomo Hanael Shlomo Hanael Pinchas Ginsburg
Chaimovsky (Shuki) Shemer

Eyal
Shlomo Hanael Eyal Chaimovsky
Chaimovsky

Ruth Dahan
Eli Defes
(Portnoy)

General Meetings Good Governance and Corruption Prevention G4

DMA

During 2014, 3 shareholder meetings were held – one annual and special, and 2 Internal Enforcement and Compliance G4
SO4
special meetings. During 2015, 3 shareholder meetings were held – one annual
EL AL's internal enforcement plan on issues of the Securities Law and Corporate
and 2 special meetings. The following issues, among others, were discussed in the
Law expresses the Company's recognition of the importance of compliance by
meetings: discussion of the Board of Directors Report and the Company's Financial
Company employees, managers, members of its Board of Directors and relevant
Reports, re-appointment of the Company's accountant auditor, appointment of
service providers. The goal of the plan is to assimilate and enforce norms of abiding
Board Members, approval of the remunerations policy for Company officers and
to law, ethics and other rules of conduct in the Company, among its officers and
Board Members, approval of terms of tenure of the Company's CEO and approval
employees, and thus to ensure the compliance of the Company and individuals
of transactions in which a holder of controlling interest has personal interest.
within the Company to the instructions of the Securities Law.

93
The enforcement plan includes measures for internal detection of violations and
potential failures, such as leaking of internal information to external factors, or
forbidden influence on the trade of Company shares. In the framework of the plan,
an outline was determined for the operation of the Company's internal enforcement
system, and primary procedures and protocols were defined, including: procedure
for the work of the Board of Directors; procedure for defining the roles and authority
of the Audit Committee; protocol for transactions with related parties; conflict of
interests protocol for Board Members; officers' remuneration protocol; procedure
for (non-financial) reporting; internal information protocol; procedure for transfer
of information to the media and the capital market; procedure for considering
enforcement issues in the promotion of employees and managers; and a procedure
for enforcement considerations in the remunerations of employees and managers.
The Board of Directors had approved and adopted the internal enforcement plan
and its key procedures, and by the CEO's recommendation, appointed the Legal
Counsel to head Company's internal enforcement.
During 2014-2015, the Enforcement Officer took different actions to assimilate
the enforcement plan among employees and managers in the Company. Such
actions included training on the issue, surveys held to evaluate the effectiveness
of the internal enforcement plan, and initiated reviews were conducted to examine
the implementation of enforcement regulations. Additionally, the intranet portal
publishes distant learning courses in Hebrew and English, intended for Board
members, managers and employees of the Company and its subsidiaries, in Israel
and abroad, that include a description of the principles of the Company's internal
enforcement plan and key enforcement procedures.
To the best of our knowledge, no substantial changes occurred to the risks of
compliance that the Company is exposed to with regard to the Securities Law and
Corporate Law, from the time the survey was conducted to identify compliance
risks in these issues in 2013.
94
In accordance with the instructions of the enforcement plan, the Corporate
Governance Committee convenes at least twice a year and discusses the report
of the Enforcement Officer, which includes, among other things, a description of
actions taken during the period covered by the report from the aspect of Securities
Law and Corporate Law, a review of enforcement incidents and the measures
taken to address such incidents and prevent similar incidents in the future, as well
as a file of legislation updates, Securities Authority instructions and any substantial
decisions made in the context of legal proceeding from the aspect of the Securities
Law and Corporate Law.
Preventing Conflict of Interests
In the context of the Company's internal enforcement plan with regard to the
Securities Law and Corporate Law, a protocol was approved addressing conflict
of interests for Board members and senior officers. This procedure determines
guidelines for cases in which the affairs of a person and/or entity connected to that
person might place him in a personal conflict of interests with regard to an issue,
decision, action or transaction that are on the agenda of the Board of Directors or
its committees. The protocol also determines instructions concerning situations in
which a personal matter or conflict of interests might arise for a Board member.
In accordance with the enforcement protocol addressing transactions with related
parties, Company officers are required at the time of their appointment and at least
once annually, to respond to a questionnaire in which they are requested to submit
information concerning related parties. The Company Secretary is responsible for
forming and updating, from time to time, a list of related bodies to the Company
according to the information received from senior officers by this questionnaire.
Officers are obligated to report to the Company with regard to any changes that
might have occurred in the information they had reported to the Company in the
related parties' questionnaire. The list is distributed to various factors in the Company
as soon as it is updated and is published on the Company's organizational portal.
Internal Audit
In keeping with the Law, an Internal Auditor operates in the Company, constituting
a separate measure of monitoring in the Company. The Auditor has free, constant
and direct access to any document and information in possession of the Company
or any of its employees, as well as any regular or computerized database and
all automated data processing systems in the Company, including financial data.
Furthermore, the auditor is a member of the senior management team of the
Company and is present in all management meetings.
The Company audit team is comprised of 9 auditors from different sectors:
accounting, law, economics, engineering, IT, commerce, business administration
and organizational consulting. Team members hold leading international
qualifications such as CIA, CISA, SRISC, accounting and lawyer licenses, IT
auditors and risk managers.
Audit assignments are varied and include planned audits, ad-hoc reviews, risk
assessments, addressing complaints regarding irregularities by managers and
suspicions for wrongdoings, formulating and leading a plan the prevention for
embezzlement and fraud and so forth.
A page of the organizational intranet portal was dedicated to the Company Auditor,
serving as one of the means at this disposal to transmit information and updates to
all Company personnel. Via this page, reports can be made to the Auditor regarding
suspicion for infringements of the law, integrity violations or mismanagement of
business affairs. After receiving the report, the Auditor reviews the matter and
decides whether to examine the issue further and in what way.
During 2015 the Auditor submitted reports addressing a wide variety of issues,
including safety, security, finance, service, commerce, information systems, human
resources, operations and more.
Maintaining Integrity
During 2014-2015, we continued taking different actions at EL AL to minimize
and prevent embezzlement and fraud. Among these actions the following might
be mentioned: risk assessments, exposure assessments, process analysis,
trainings and treating suspicions for deviation from proper management and
more. Furthermore, as part of the protocol regarding suspicion for infringement
of law or integrity violations or the mismanagement of Company business, a G4
DMA
mechanism was defined for integrity violations, and it is communicated to all
employees accompanied by definitions and examples. These are also featured in G4
SO4
the Company Auditor's websafe and the organizational portal.
Lawsuits and Legal Proceedings
As of the end of 2015, a number of legal proceedings are conducted against
the Company, and due to some of them, the Company has made appropriate
provisions as described in its financial reports, based on the evaluation of the
management, which in turn are based on opinions of its legal counselors. Details
regarding substantial legal proceedings can be found in explanation 16 to the
Company's 2015 Financial Reports.
During the years of reporting 2014-2015, no significant fines were received by the
Company. However, a number of cases against the company are still outstanding,
with a final decisions is yet to be received.
95

Senior Officers Remunerations
In accordance with the Companies Law, the Company formed a remuneration policy
for its officers via the Audit and Remunerations Committee. The remunerations
policy was approved in January of 2014 by the Company's shareholders meeting.
The Company's remunerations policy is based on principles that would enable
an appropriate and adequate balance between the desire to compensate senior
management and Board members for their achievements, and the need to ensure
that the compensation structure is in keeping with the benefit of the Company.
96
Managing Corporate Responsibility
The issues of corporate responsibility and community relations are concentrated
under one roof at EL AL, due to the recognition of the subject's importance and its
contribution to the organization. Mr. Zvika Segal was appointed to the position of
Director of Corporate Responsibility & Community Relations. Among his duties,
Mr. Segal is responsible for the presentation of the corporate responsibility work
plan to the Corporate Governance Committee, which was appointed to address
and direct the issue on behalf of the Board of Directors.
New Logo for EL AL Community Responsibility ‫אל על בקהילה‬
At the end of 2015 we launched the new logo for our social responsibility and
community relations section. This branding is an essential and precise stage for us
in terms of the continual development of our social activity for the community. The
logo presents our perception of values in an optimal way – a connection between
people, closeness of hearts and doing things for others.
"Maala" Index ‫אל על בקהילה‬ G4-15
Since 2011 we have been proud to partake in the Maala Index, which rates
Israeli companies according to their corporate responsibility performance. In
2015 we were awarded the "Platinum" rating for the first time, for our social and
environmental conduct during 2014. We have maintained this rating in 2016 as
well, referring to our performance in 2015. We consider this to be a testament and
recognition in our continuous investment in corporate responsibility.
G4-56
Ethics
The Ethics Code
At EL AL we operate in accordance with the Company's Ethics Code, which was
formulated and written in collaboration with employees and managers and with the
assistance of an external consultant. The behavioral norms and values defined by
the code guide us – employees and officials alike – in our activities and our work,
and also applies to our subsidiaries:
1 6
Leadership - The National Carrier Professionalism
2 7
Fairness and Transparency Team work and Sharing
3 8
At Home in the World Safety and Security
4 9
Excellence and Creativity Environmental & Community Responsibility
5 10
The People of EL AL Management & Executive Accountability
Leadership. Striving to economic soundness and moral excellence to yield a
return for all stakeholders. The interactions with our subsidiaries are based on a
relationship of trust, mutual collaboration and openness.
Fairness and transparency. We act in fairness and transparency, not impacted
by foreign considerations in our decision-making. We refrain from any conflict
of interests and interact reliably and fairly with all of our stakeholders. We act
transparently and openly and assume personal accountability for our actions.
At home anywhere in the world. We seek to exceed our customers' expectations
of service, and continually improve the customer experience. Provide a home to
all of our customers and personnel by attending to their needs and treating them
with respect and appreciation.
Excellence and creativity. We strive for initiative, fast response, excellence,
creativity and perpetual innovation, always placing the customer at the top of our
priorities and the commitment to high performance in order to generate substantial
value for all of our stakeholders.
The people of EL AL. True partnership between all people of EL AL, collaboration
and friendship, in the daily routine and in crisis situations. Making the most of our
capabilities while respecting and caring for others and embracing diversity.
Professionalism. We endeavor to be a learning organization which continually
enhances the knowhow and professionalism of its people.
Teamwork and sharing. Teamwork both within and outside of the Company,
mutually assisting one another and attempting to see the broader picture, in order
to accomplish the tasks and challenges ahead.
Safety and security. We work to implement these key values in every realm of action,
to provide the upmost safety and security for our customers, personnel and suppliers.
Environmental & community responsibility. We act from a sense of environmental
and social responsibility, and incorporate these considerations into our operations.
Additionally, we are engaged in our community and appreciate our personnel's
involvement and volunteerism for the community.
Management & executive accountability. Acting professionally and using discretion,
while being accountable for any activity in the unit. The Company's Management
is a full partner to the assimilation of the Code and provides a personal example
in its actions.
97
The Company's Ethics Code is featured on our website and is accessible to all of
our stakeholders.
Deployment of the Ethics Code
Upon completion of the phrasing of our Ethics Code, the Company began a process of
forming an assimilation and training program, aiming to ensure all of our employees,
in Israel and abroad, are acquainted with the values expressed by the code, and
internalize them. The assimilation program included the following components:
1. Deploying the Ethics Code to Company employees (via email and later also
in printed format), uploading it to the organizational portal, positioning posters
in conspicuous positions throughout the campus, as well as in the offices and
external branches;
2. Translating the code to English for the purpose of its distribution and presentation
in Company representations abroad;
3. Developing a tutorial that integrates information, videos and interactive activities,
and examines how ethical dilemmas are handled, and its deployment to employees
and managers.
4. Starting in 2012 lectures and discussions on the issue are integrated into all
Company basic and training courses, and the execution of the tutorial was defined
as part of their requirements.
5. The "Tafnit" system enables anonymous inquiries and reports of ethics code
violations, as well as raising questions and ethical dilemmas from the field.
98
The measurements we use to examine the extent and manner of assimilation of
the Ethics Code are:
1. The rate of employees who have undergone training by the tutorial;
2. The number of inquiries made to the Company Ethics Officer;
3. The number of inquiries on ethics issues via the "Tafnit" system;
4. And number of inquiries that have led to disciplinary measures.
The EL AL Ethics Officer is responsible for the execution of this plan in cooperation
with the training department.
Training
Towards the end of 2015 and the beginning of 2016, we have started developing
a renewed software for the assimilation of the issue of ethics and acquaintance
with the Ethics Code among Company employees and managers. The tutorial is
expected to go online during the second half of 2016.
During 2014, 1,328 employees underwent Ethics Code training, and during 2015,
750 employees.
7 Our Subsidiaries
Tamam | Sun d'or | Katit

99
 We Want You to Know More
About Our Subsidiaries…
Tamam - Aircraft Food Industries
(Ben Gurion Airport) Ltd.
Aircraft Food Industries (Ben Gurion Airport) Ltd.
("Tamam"), which is fully owned by EL AL, was
founded in 1949, and since then has been providing
a broad variety of qualitative food services in aviation
sector and external to it, in Israel and abroad.
other airlines and additional customers. Tamam's customers include the following
Tamam's facility is located on IAA grounds, outside of BGN Airport, and its
companies: Arkia, Sun d'or, Israir, KAL, Royal Jordanian, Uzbekistan Airways and
operations are primarily the production and supply of kosher ready meals for
many other charter airlines.
airlines. Over the years Tamam has become a leading company in its field.
Additionally, Tamam also provides catering services to institutions and large Tamam considers its clientele to be part of its success, and regularly measures their G4
PR5
events and provides food solutions to accommodate its customers' demands, satisfaction levels. In this way, Tamam improves the quality of service provided to
such as: gluten free, vegan, vegetarian, dietetic, glatt kosher etc. its customers. The measuring and control are conducted in different ways:

G4 According to EL AL's Consolidated Financial Report, Tamam's revenues in 2014
EC1
were approximately UDS 32.3 million, and in 2015 – USD 31.2 million.
Tamam's Customers
Tamam manufactures approximately 6 million meals annually for airlines and
institutional customers. Tamam is attentive to its clientele and adapts itself to
their demands, in order to attain maximal satisfaction from the service provided
by the company.
Tamam's primary customer is EL AL; it purchases meals for its flights departing
Israel as well as for some of the returning flights from nearby destinations.
During 2014, about 81% of Tamam sales were to EL AL, and the remainder to
• Digital surveys conveyed to company customers via EL AL's feedback system,
refer, among other things, to passenger satisfaction regarding meals on flights.
Additionally, flight service managers communicate ongoing feedback to Tamam.
• Questionnaires initiated once a year, circulated to non-airline institutional
customers.
• Focus groups of customers and designated populations of non-avition meal
consumers.
• Call center for customers of the company. Tamam works tirelessly to improve
the call center's service and efficiency.

100
 G4 Tamam Employees and Work Environment
LA12
In 2015, Tamam employed 394 personnel, and during busy summer months
approximately 100 additional employees were employed through a contractor.

Men Women

195
Employees - 171 Permanent - 107
Managers - 24 Temporary - 88
199
Employees - 189 Permanent - 116
Managers - 10 Temporary - 83

Tamam ensures it creates a pleasant and welcoming working environment
for employees from the day they are recruited and inducted. It also conducts
ongoing dialog with its employees, and designates one day a week for CEO
G4 meetings with any employee interested. Moreover, the company holds periodic
LA11
review talks with all levels of employees and managers, including temps.
Tamam cares for the welfare of its employees by means of social events, fun days,
common vacations, social activities, cultural events, ethnic holidays and so forth.
G4 Personal and Professional Development
LA10
Tamam is devoted to nurturing its personnel and training them for different roles
in the company. For this end, it offers its managers and employees training for
personal and professional development. Training courses are held according
to the company's training program on a variety of issues, such as: work safety,
food safety and food quality, work procedure refreshers, first aid, workshop for
managers, professional education and so forth.
Additionally, Tamam encourages academic education and provides assistance to
its employees who are studying towards an academic degree, subject to approval
by the company CEO, at 75% gross of the cost of an academic school year.
Employment Diversity and Gender Equality G4
LA12
Tamam promotes the diverse employment of varied populations, such as: Israeli
Ethiopians and emigrants from the former USSR, India, South Africa and North
Africa. Additionally, the company insists on gender diversity in the management
level as well – approximately 50% of Tamam's senior management (3 women)
and 25% of the managerial level (10 women) are women.
Tamam attributes great importance to the employment of people with disabilities
for the creation of egalitarian and respectful employment in Israeli society. Tamam
employs more than 20 employees with different disabilities and integrates them
into the work cycle.

101
 Animal HACCP
products (USDA, EEC)
export Ministry of
permit Agriculture
Veterinary
Services

Tamam respects and appreciates the work of its employees, and enables
employees who are so interested to continue working after retirement age. ISO:9000-2008 Chief
Institute of Ministry of Health Rabinnate
Quality & Control Producer of Israel
License

Special Good
permit to Manufacturing
produce Practice (GMP)
gluten free Ministry of
The average seniority of Tamam employees is 10 years. 10 of our employees are meals Health

older than the official retirement age.

G4 G4
PR1 Food Quality and Safety Healthy Food Adapted for a Variety of Customers PR1

Tamam invests in the development of products accurately suited to customer
needs, while strictly maintaining the quality and safety of products. This policy is
executed by means of:
• Compliance to legal requirements and regulations, under supervision by the
Ministry of Health
• Meeting strict international quality standards in terms of food safety system
management. Tamam constantly improves the quality management system
by means of consistent reviews of quality targets and meeting them, to ensure
food safety and the prevention of quality malfunctions.
• Meticulousness in the production of meals in proximity to flight departure
times, in order to maintain the highest levels of taste, freshness and quality for
its clientele.
• Encouraging participation and accountability among its employees, by means
of instruction, training and supervision.
As a company that supplies food to a broad customer base, Tamam has the
responsibility of supplying fresh meals that were produced from qualitative
ingredients, while minimizing the use of preservatives. All this stems from a
perception for the improvement of quality of life through "healthier food". Tamam is
meticulous about the quality of its products, both in aviation and in catering.
Regarding its aviation customers, Tamam manufactures and markets special
meals according to health requirements (low sugar, salt, gluten, lactose, and so
forth), religious or cultural practice (glatt kosher, Indian, Asian meals etc.) and
ideological "way of life" approaches (vegetarian, vegan, fruitarian meals etc).
In terms of its catering customers, Tamam responds to unique dietary needs in
educational institutions and the IDF by marketing gluten free, soy free, lactose free,
sesame free and egg white free meals. Additionally, Tamam is meticulous about
choosing pure ingredients with no readymade mixes, sauces, dressing, powders
and the like. Tamam is resolute about involving its customers in the development
of meals with special requirements by conducting consumer focus groups and the
use of social networks.

102
 EL AL and "Salt of the Earth" have recently launched a health
initiative, in which sodium reduced "Salt of the Earth" salt packs
will be served in hundreds of thousands of meals served on EL AL
flights. This is conducted as part of the trend to reduce consumption
quantities of sodium. Sodium reduced salt contains about 50% less
sodium than regular table salt.

G4
EC7
Tamam's Community Involvement

G4 Tamam is committed to the community in which it operates, and invests in
EC8
strengthening and developing it in through a variety of issues. Activities include
G4 donations, assistance to non-profit organizations, maintaining an ongoing
SO1
relationship with the Celiac Rights Forum, as well as employing soldiers who are
on "economic leave". Tamam also partakes in EL AL's community activities.
Donations and contributions (fiscal and in-kind). As part of its activity for the
community, Tamam has made a donation to the Beni’s Home for Lone Soldiers;
a contribution of ingredients for a Bat Mitzvah event for the Goldschmidt Home
for Girls; a contribution of hot meals; a donation of food and ingredients to needy
families on holiday eve dinners via "Hand to Hand"; a contribution to children with
cancer on a trip abroad; a donation of meals for holocaust survivors (Passover
Seder meal); and a contribution to Kesher – home for the special families.
Ongoing connection with nonprofit associations. Tamam is involved with "Shikum
Acher – Different Rehabilitation", which operates and assists people with mental
disabilities to integrate into the employment market, and "Olim together" that
assists Ethiopian-Israeli academics to integrate into employment according to their
fields of study. Tamam has an ongoing relationship with the Celiac Rights Forum
(conducting meetings of parents, children and dieticians) aiming to improve and
diversify its gluten-free dishes.
Employment. Tamam helps approximately 20 lone soldiers from a paratrooper
battalion, by hiring them to work during special economic army leave, during which
they may work and earn money in addition to their military salaries, due to their
own or their families' economic status.
Energy Efficiency at Tamam
Tamam devotes efforts to improving its energy efficiency, from the understanding
that it should minimize its negative environmental impacts, and has been acting
to improve a number of issues, such as electricity efficiency, water efficiency, fuel
consumption efficiency etc.
Energy efficiency. The company acts to save lighting electricity by replacing
hundreds of light bulbs to economic T5 bulbs; formulating a protocol to shut down
inactive system on Saturdays to save energy; improving and bettering cooling
systems (such as the purchase of a new chiller, for example).
Water consumption efficiency. In recognition of the importance of the water
resource and mitigating its consumption, Tamam had recently purchased new
dishwashers, replaced worn pipes, improved the recovery ratio of the osmosis
system, and improved the facility's water system by appropriate maintenance.

103
Reducing fuel consumption and air pollution. Tamam recognizes the importance
of minimizing the use of fuel oil to the mitigation of pollutant and GHG emissions.
During 2015, infrastructure works were conducted in the heating and steam
conducting systems, aiming to reduce fuel oil consumption. Additional actions
are taken for purposes of energy efficiency – replacing old dishwashers, bettering
systems and installing new monitors.

A First Class meal

104
 Sun d'or International Airlines Ltd.
Sun d'or was established on 1 October 1977 as In 2015 Sun d'or had 27 employees: G4
LA12
a subsidiary of EL AL, named "EL AL Charter
Services Ltd". Four years later the company Men Women

9 18
name changed to "Sun d'or", and consequently to
"Sun d'or International Airlines".
Sun d'or is located at the BGN Airport EL AL campus, is under full ownership of
EL AL, and it organizes and markets the group's charter operations. The company
markets scheduled, seasonal and occasional flights. Sun d'or's relationship with
Employees - 4 Employees - 14
EL AL is also expressed by the maintenance of aircraft and the service both on the Managers - 5 Managers - 4
ground and in the air, which are conducted by EL AL personnel. EL AL's Matmid
frequent flyer club is another link between the companies.
Over the years, Sun d'or grew to become a significant player in the Israeli charter Sun d'or intends to continue its development and growth trend in future years as
flight market, and currently also operates flights for incoming tourists visiting Israel. well, and to launch new holiday destinations.

During 2015, Sun d'or marketed scheduled flights to new destinations (Naples and
Nice) and substantially grew its operations to existing destinations such as Lisbon.
Additionally, Sun d'or marketed flights to new charter destinations, such as Ibiza
and Karpathos, and marketed flights to exotic destinations in Africa – Seychelles,
Kilimanjaro and Zanzibar. In total, during 2015 Sun d'or marketed 1,141 flights to
about 50 destinations in Europe, Africa and the Mediterranean Basin, compared to
856 flights in 2014, data indicating 33% growth.
G4 According to EL AL's Consolidated Financial Report, Sund'or's revenues in 2014
EC1
were approximately UDS 46,076 thousand, and in 2015 – USD 57,486 thousand.
According to our professionalization plan, all Sun d'or personnel undergo training G4
LA10
and instruction to perform their duties, partake in EL AL's internal training courses,
as well as have study and enrichment seminars out of the company.
Sun d'or invests a lot of thought and resources into the creation of a pleasant,
comfortable and welcoming working environment for its employees. The
company works to improve the welfare of its employees and holds annual social
days and company events – Children's Day for children of employees, holiday
events for employees and their families, Women's Day, annual festive shared
dinner and so forth.

The company regularly operates two 185 seat 737-800 Boeing aircraft. Additionally, Sun d'or emphasizes the direct and unmediated relationship between employees G4
LA11
any EL AL aircraft is entitled to operate Sun d'or flights. and managers. Company employees regularly receive periodic feedback from
company managers.

105
 Sun d'or also works to instill a perception of ethical conduct, and has begun
a process of writing the company's policy document, which would include the
company's vision and ethics code.
In addition to business operations, Sun d'or employees also partake in volunteer
activities for the community. Thus, for example, in 2015 employees participated
in a cleanup operation of the Ben Shemen Forest supported by JNF.

G4 Sun d'or's customer satisfaction is assessed as part of EL AL's customer

PR5
satisfaction surveys. Additionally, Sun d'or operates a Facebook page, through
which it strengthens the relationship with its customers and offers a variety of deals.
Sun d'or's fuel consumption data is included in the environmental chapter of this report.

Did you know? The Name Sun d'or combines the

English word "sun" and the French "d'or" which
means "golden". This sums the meaning of the
company's name to be "Golden Sun".

Distribution of company employees to age groups:

At the end of 2014, Miki Strassburger replaced Uri

Danor as CEO of the company. Strassburger was
selected by the Globes business newspaper as
one of 40 promising young businessmen in Israel.

106
 Katit Ltd.
Katit Ltd. is fully owned by EL AL and its main operations are the production and supply
of meals for company employees. The company operates a number of restaurants
for EL AL employees, canteens in EL AL's office buildings as well as the King David
Lounge at BGN Airport. Company offices are located at the EL AL campus.
According to EL AL's Consolidated Financial Report, Katit's revenues in 2014 were
G4 approximately USD 4,348 thousand, and in 2015 – USD 4,179 thousand.
EC1
Katit employed 107 personnel in 2015:
G4
LA12

Men Women

24
Employees - 22
Managers - 2
Permanent - 2
Temporary - 22
83
Employees - 81
Managers - 2
Permanent - 19
Temporary - 64
• Training and qualification of employees. Katit employees undergo training to
be qualified for work in the kitchen, as well as periodic safety training, adapted
to this work environment.
Healthy Catering at EL AL
As mentioned, as part of our concern for the health of EL AL personnel, in
Katit conducts employee gatherings to note holidays as well as special occasions September Katit started offering a "Healthy Meal" alternative – a self-constructed
from time to time for the welfare of its employees. Katit's management maintains salad, which has become a very popular meal option. Additionally, every Monday,
an open door policy and employees are comfortable to approach management on as part of the "Meatless Monday" initiative, an additional vegetarian alternative is
any matter. offered to interested diners. We further ensure to add more and more vegetarian
G4 components in the food menu.
LA12
• Employment diversity. Katit employs staff from different societal sectors,
including many new immigrants. In fact, all employees hired by Katit in recent Community Responsibility G4
EC7
years have immigrated to Israel recently, Katit being their first workplace.
As an EL AL subsidiary, Katit supplies about 100 dishes daily to the "Kadima"
• Food surveys. Katit occasionally conducts surveys to collect feedback on the home for youths in Or Yehuda, and contributes meals to events of Battalion 202
meals served to EL AL employees. adopted by EL AL.

107
8 About This Report
& Content Index

108
 About this report
This report, referring to the years 2014-2015, is the third corporate social
G4-28
responsibility report published by EL AL. We intend to uphold our commitment and
to continue publishing CSR reports in upcoming years, presenting our progress and
improvement in them. We consider these to be an expression of our commitment to
advancing the issue of sustainability and corporate responsibility in the Company.
G4-33 The report was written in accordance with the G4 "Core" option of the Global
Reporting Initiative (GRI) guidelines, without an external verification process.
Its goal is to expose, in a transparent and orderly manner, EL AL's activities on
the issues detailed within, and is intended primarily for Company employees, our
customers, our business and community partners and our shareholders. In the
process of writing this report, we have identified and addressed material aspects
in Company operations, while cooperating with stakeholders, as is detailed in the
section titled "Material Aspects". Much like preceding reports, this document and the
material aspects detailed in it, are focused on Company operations in Israel, unless
otherwise stated. Furthermore, some of the chapters also include some reference to
the operations of our fully owned subsidiaries – Tamam, Katit and Sun d'Or.
In some cases, numerical data from 2013 was presented as a basis for comparison.
The point of reference to the data presented for each year is December 31.
The reporting of environmental impacts and performance and the steps toward
improvement in this topic, in addition to our aerial operations, also covers the major
environmental issues emanating from ground operations in EL AL's campus. EL
AL has Additional storage and operational areas excluded from this report. The
calculation of greenhouse gas (GHG) emissions resulting from the use of jet fuel
was based on fuel quantities uplifted by EL AL aircraft. Naturally, all aircraft depart
with excess fuel quantities in case of a longer stay than anticipated. In practice, fuel
consumption is lower.
The calculation of GHG emissions resulting from ground operations was
calculated according to leading methodology GHG Protocol. This methodology
requires reporting by 2 scopes (Scope 1 - emissions under direct responsibility of
the reporting company; and Scope 2 - emissions to which the reporting company
is indirectly responsible, such as the consumption of electricity). Reporting
in Scope 3 (additional indirect emissions in the supply chain) are considered
optional and excluded from this report.
The report was written with the assistance of Good Vision – CSR Consulting Firm,
of the Fahn Kanne & Co. Grant Thornton Group. Good Vision is highly experienced
in CSR services and is a GRI Organizational Stakeholder (OS).
We wish to thank all people and entities involved in the collection of data, writing
and production of this report, in particular maitai design studio and Peter Goss,
Sivan Farag from Photo Farag, the Atmosphere Magazine editorial staff and
Yuval Sigler Communications Ltd.
Finally, we thank all stakeholders with whom we have held interviews in the process
of writing this report, and who have assisted us throughout the process.
The following people can be contacted with any question or issue concerning this
G4-31
report and its contents:
Mr. Zvika Segal,
Director of Corporate Responsibility & Community Relations at EL AL, zvise@elal.co.il
Ivri Verbin, CEO of Good Vision - CSR Consulting Firm, ivri@goodvision.co.il
Adv. Igal Avrahami,
Accounts Manager at Good Vision - CSR Consulting Firm, igal@goodvision.co.il
109
G4-32 Content Index
General Standard Disclosures

Indicator Description Page Comments / Omissions

Statement from the most senior decision-maker of the organization (such as CEO, chair, or
G4-1 equivalent senior position) about the relevance of sustainability to the organization and the 3-4
organization’s strategy for addressing sustainability.
G4-3 Name of the organization. 9

G4-4 Description of primary brands, products, and services. 10-11

G4-5 Location of the organization’s headquarters. 9

Countries where the organization operates, and names of countries where either the
G4-6 organization has significant operations or that are specifically relevant to the sustainability 9, 62-63
topics covered in the report.
G4-7 Nature of ownership and legal form. 13

G4-8 Markets served. 10-11

13-15,
G4-9 Scale and information about the organization.
61-62
61-62,
G4-10 Total number of employees by type of contract, gender and region.
64-65
G4-11 Percentage of total employees covered by collective bargaining agreements. 62

G4-12 Description of the organization’s supply chain. 56-57

Significant changes during the reporting period regarding the organization’s size, structure,
G4-13 17
ownership, or to its supply chain.

110
Indicator Description Page Comments / Omissions

G4-14 How the precautionary approach or principle of The Rio Declaration is addressed by the organization. 83
Externally developed economic, environmental and social charters, principles, or other
G4-15 85, 96
initiatives to which the organization subscribes or which it endorses.
Memberships in associations (such as industry associations) and national or international
G4-16 18
advocacy organizations.
All entities included in the organization’s consolidated financial statements or equivalent
G4-17 18-20
documents, and whether they are covered in the report.
The process for defining the report content and the Aspect Boundaries and how the
G4-18 21
organization has implemented the Reporting Principles for Defining Report Content.
G4-19 The material Aspects identified in the process for defining report content. 21

G4-20 The material Aspect and their Aspect Boundary within the organization. 21

G4-21 The material Aspect and their Aspect Boundary outside of the organization. 21

G4-22 Any restatements of information provided in previous reports, and the reasons for such restatements. 86

G4-23 Significant changes from previous reporting periods in the Scope and Aspect Boundaries. - No significant changes during reporting period

G4-24 List of stakeholder groups engaged by the organization. 22-24

G4-25 The basis for identification and selection of stakeholders with whom to engage. 22-24
the organization’s approach to stakeholder engagement, including frequency of stakeholder
22-24, 40,
G4-26 group, and an indication of whether any of the engagement was undertaken specifically as
59, 68
part of the report preparation process.

111
Indicator Description Page Comments / Omissions
Key topics and concerns that have been raised through stakeholder engagement, and how the 22-24, 40,
G4-27
organization has responded to those key topics and concerns, including through its reporting. 59, 68
G4-28 Reporting period 109
The last report was published in 2014 and
G4-29 Date of most recent previous report - covered FY 2012-2013. Prior to that a report was
published in 2012 which covered FY 2010-2011
G4-30 Reporting cycle (such as annual, biennial). - Reporting is biennial

G4-31 Contact point for questions regarding the report or its contents. 109

G4-32 GRI Content Index 110-115

The organization’s policy and current practice with regard to seeking external assurance for
G4-33 109
the report and the relationship between the organization and the assurance providers
G4-34 The governance structure of the organization, including committees of the highest governance body. 91-93
The organization’s values, principles, standards and norms of behavior such as codes of
G4-56 97-98
conduct and codes of ethics.

112
Specific Standard Disclosures
Material
Indicator Description Page Comments / Omissions
Aspect
G4-DMA Management Approach 9

Economic 16, 100,

G4-EC1 Direct economic value generated by the organization
performance 105, 107
The total monetary value of financial assistance received by the organization from
G4-EC4 9, 16
governments during the reporting period.
G4-DMA Management Approach 26

Indirect 26-29,
Extent of development of significant infrastructure investments and services supported, and
economic G4-EC7 33-36,
whether these investments and services are commercial, in-kind, or pro bono engagements.
impacts 103, 107
26-29,
G4-EC8 Significant identified indirect economic impacts the organization has, and their scope
34-38, 103
G4-DMA Management Approach 82, 86
Energy
G4-EN3 Total energy consumption in the orginazation 86

G4-DMA Management Approach 82

Water
G4-EN8 Total water withdrawl by source 86

G4-DMA Management Approach 82, 84

Emissions G4-EN15 Direct Greenhouse gas (GHG) emissions 83-85

G4-EN16 Indirect Greenhouse gas (GHG) emissions 83-84

113
Material
Indicator Description Page Comments / Omissions
Aspect
G4-DMA Management Approach 82, 87

G4-EN22 Total water discharge by quality and destination 82

Effluenys
and waste G4-EN23 Total weight of waste by type and disposal method 87-88
Weight of transported, imported, exported, or treated waste deemed hazardous under
G4-EN25 the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported 87-88
waste shipped internationally
G4-DMA Management Approach 61
Total number and rates of new employee hires and employee turnover by age group,
G4-LA1 61-65
gender and region
Employment
Benefits provided to full-time employees that are not provided to temporary or part-time
G4-LA2 73-75
employees, by significant locations of operation
G4-LA3 Return to work and retention rates after parental leave, by gender 75

G4-DMA Management Approach 77

Occupational Percentage of total workforce represented in formal joint management-worker health and
health and G4-LA5 77
safety committees that help monitor and advise on occupational health and saftey programs
safety
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and
G4-LA6 78, 80
total number of work-related fatalities, by region and by gender
G4-DMA Management Approach 70

G4-LA9 Average hours of training per year per employee by gender, and by employee category 70
Training
and education G4-LA10 Programs for skills management and lifelong learning that support the continued 71-72,
employability of employees and assist them in managing career endings 110, 114
Percentage of employees receiving regular performance and career development reviews, 75, 101,
G4-LA11
by gender and by employee category 105

114
Material
Indicator Description Page Comments / Omissions
Aspect

Diversity G4-DMA Management Approach 67

and equel
Composition of governance bodies and breakdown of employees per employee category 63-64, 91,
opportunity G4-LA12
according to gender, age group, minority group membership, and other indicators of diversity 101-102
G4-DMA Management Approach 26
Local Percentage of operations with implemented local community engagement, impact 26, 34-36,
G4-SO1
communities assessments, and development programs 103
G4-SO2 Operations with significant actual and potential negative impacts on local communities 89

G4-DMA Management Approach 93-96

Anti-
corruption
G4-SO4 Communication and training on anti-corruption policies and procedures 93-96

Customer G4-DMA Management Approach 43-44

health and
Percentage of significant product and service categories for which health and safety
safety G4-PR1 43-44, 102
impacts are assessed for improvement

Product G4-DMA Management Approach 40

and service
40-42,
labeling G4-PR5 Results of surveys measuring customer satisfaction
100, 106

115
116