The Israeli government plans to bail out national airline carrier El Al, granting loan guarantees for 80 percent of a $400 million loan.

It was agreed on Sunday evening at a meeting at the Finance Ministry that the loan would be dependent on a range of demands, the Israeli business daily Globes reported.

El Al airlines has suffered since the onset of the coronavirus outbreak and the cancellation of passenger flights.

The government is requiring the airline to make cuts beyond those already presented, including the firing of 2,000 employees, or around 33 percent of its workforce.

These will save about $50 million and include cutbacks on employee benefits of free flights for themselves and their families, salary cuts for senior executives and the board of directors, and the temporary stoppage of granting dividends to shareholders, according to the report.

It is also expected that the airline owners invest NIS 100 million ($28.4 million) into the airline or to dilute their stake.

According to the report, El Al has paid around NIS 200 million ($56.9 million) in dividends over the past five years. The Finance Ministry does not want to gain shares in the airline in exchange for the loan.

Support Jewish Journalism
with 2020 Vision

One of the most intriguing stories of the sudden Coronavirus crisis is the role of the internet. With individuals forced into home quarantine, most are turning further online for information, education and social interaction.

JNS's influence and readership are growing exponentially, and our positioning sets us apart. Most Jewish media are advocating increasingly biased progressive political and social agendas. JNS is providing more and more readers with a welcome alternative and an ideological home.

During this crisis, JNS continues working overtime. We are being relied upon to tell the story of this crisis as it affects Israel and the global Jewish community, and explain the extraordinary political developments taking place in parallel.

Our ability to thrive in 2020 and beyond depends on the generosity of committed readers and supporters. Monthly donations in particular go a long way in helping us sustain our operations. We greatly appreciate any contributions you can make during these challenging times. We thank you for your ongoing support and wish you blessings for good health and peace of mind.