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Israeli airline reaches bailout deal with government

Israel’s flag carrier El Al and the government reached a bailout plan, which would mean huge layoffs and sizing down flights.
This picture taken on May 14, 2020 shows a view of the empty check-in counters of Israel's national flag carrier El-Al, at a terminal at Ben-Gurion International Airport near Tel Aviv, due to the COVID-19 coronavirus pandemic. - El Al's CEO Gonen Ussishkin had written Prime Minister Benjamin Netanyahu a personal letter asking for assistance. The airline company had rejected an aid package drafted by the Finance Ministry, and is seeking government backing for a $400 million loan from Israel Discount Bank and

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."

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