Monday, 11 May 2020

Changes ahead for EL AL as Israeli government considers bailout

Mass changes ahead for the Israeli airline EL AL as the government looks to a massive bailout of the carrier, according to the Israeli Finance Minister Moshe Kahlon.

The national carrier had previously asked the government to back loans of around $400 million to help it survive the coronavirus COVID-19 crisis that has plunged it into even greater uncertainty and mounting losses.  

The airline has grounded most of its aircraft since the pandemic first started to cause nations around the world to introduce travel bans and entry restrictions. Around 6000 staff have been placed on leave without pay and will be so until the end of June at the earliest.

In order for the bailout to take place, the government wants the airline to make significant changes, including shedding over a third of its staff, something the unions are completely against.  The government also requires the carrier's owners to put in more funds to the struggling airline.  A request that has not been welcomed with positivity.






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