In March 2000 EL AL celebrated the inaugural flights of its first Boeing 777 aircraft. In additional to technological innovations, EL AL also underwent significant changes in those years; in 2003 it was registered on the Tel Aviv Stock Exchange as part of the privatization process. A year later, in June 2004, the company ceased to be a government company - after stock purchases by the public and the realization of stock options, governmental holdings in the company declined to less than 50 percent.
In January 2005 control of EL AL moved to private hands, as the Knafaim-Arkia Holding Group took possession of about 40 percent of the stock capital. A decision by the stockholders led to far-reaching changes in the directorate. Two months later EL AL's CEO Amos Shapira resigned and was replaced by Haim Romano, who initiated a change in the company's organizational structure.
In September 2005 the EL AL 2010 Strategic program was introduced, setting the company's direction for the next five years. The supreme aims of the program included significant improvement in commercial results by 2010 as well as a series of objectives that included improving passenger experience, fostering operational excellence, innovation and commercial entrepreneurship, purchasing new equipment, improving cargo and maintenance and fostering human resources.
The Second Lebanon War in July 2006 significantly affected passenger movement to and from Israel. During that year EL AL continued to implement EL AL 2010, adapting it to security, political and economic developments in Israel, including a continued rise in the prices of jet fuel and increasing competition.
A year later EL AL completed the purchase of two Boeing 777-200 aircraft which were outfitted with the most advanced seats and entertainment systems of their kind. The airline also signed agreements to lease several other planes. In 2008 the company leased a Boeing 747-400 plane and two 737-800 aircraft, and signed an agreement to purchase four new 777-200 aircraft from Boeing. In 2007 the airline distributed the first dividend in its history to shareholders.