Israel’s biggest carrier El Al reached July 6 a bailout deal with the government. Under the deal, the state agreed to guarantee loans up to $250 million. El Al is expected to raise an additional $150 million by selling shares. If these shares will not be sold entirely to the public, then the state will buy them up. Thus, the state could become the major shareholder of El Al, i.e., the company would be nationalized.
The bailout agreement now awaits approval by the Knesset committee. Transportation Minister Miri Regev expressed yesterday cautious optimism, stating, "This evening the first step was 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."