El Al
El Al bailout of $400 million likely to result in airline being nationalized
Israel’s struggling national carrier will get a $250 million loan and raise another $150 million on the Tel Aviv Stock Exchange, with the government purchasing unsold shares.
An Israeli Foreign Ministry official says that the country will not open its borders to tourists on Aug. 1 as planned.
Ban on foreigners arriving at Ben-Gurion airport, requirement for Israelis returning from abroad to self-quarantine for 14 days to expire on July 1• Many airlines have resumed flights to and from Tel Aviv.
It comes on the heels of an unprecedented increase in interest from North American Jews to move to Israel.
Report: El Al rejects government bailout plan, offers counterproposal
Israeli Finance Ministry dismisses the airline’s counteroffer as a ploy to maintain the controlling shareholders’ grip on the company.
Israeli government to bail out El Al, could gain full control
It will loan the airline $200 million and commit to buying shares not bought by the public in an offering to raise the remaining $150 million.
“In light of the low demand for passenger flights, the company has decided to extend the temporary cessation of flights,” says the airline.
EL AL reportedly suffered $60 million loss in 2019
That came before the coronavirus, which has only grounded planes and cost the airlines even more money.
A “green” list of countries with low rates of infection would be the initial destinations in restarting flights.
The government is requiring the airline to fire 2,000 employees, around 33 percent of its workforce.
El Al extends passenger-flight moratorium to May 30
The airline is also hoping to get a government loan of $400 million with 75 percent of it guaranteed by the state.
Major airlines to revive flights to Israel beginning in May
Currently, Israel is only allowing citizens into the country, requiring them to enter a two-week quarantine upon arrival.
