Israel’s national carrier El Al announced on Monday that it had agreed to a government bailout deal that will likely result in the airline’s being nationalized.
According to the terms of the deal, the airline will receive a $250 million government-backed loan and raise another $150 million by selling shares on the Tel Aviv Stock Exchange, with the state purchasing any unsold stock, AP reported.
According to the report, Israeli Transportation Minister Miri Regev said that was the “first step taken to return El Al to the runway. We will work to assist the company during the interim as is needed, with the aim of protecting Israel’s aviation independence.”
El Al was privatized more than 15 years ago. It has suffered financial losses over the years, though none as significant as those resulting from the coronavirus crisis, which has caused the airline to halt operations completely.
The bailout deal still needs to be approved by a Knesset committee.
