El Al Airlines has requested that Israel’s Finance Ministry transfer its promised aid as outlined in the government bailout plan, and also requested an increased state loan guarantee of $400 million, Globes reported.
New El Al owner Eli Rozenberg acquired 42.89% of El Al with a $150 million offering at the company’s public offering in September, and according to the bailout plan, El Al is to obtain a $250 million bank loan, with a state guarantee for 75% of the loan.
The reason for El Al’s request for increased aid is that it hasn’t thus far managed to obtain a bank loan. However, the Finance Ministry turned down its request, instead demanding that El Al streamline its operations and workforce.
According to the Globes report, two things are clear – a $250 million loan is not enough to save El Al, which is quickly running out of cash, and the aviation industry crisis caused by the pandemic is only getting worse, deepening the difficulty in obtaining a loan.
El Al is in talks with several Israeli banks, which are dragging their feet about granting a loan with little hope of the aviation crisis ending any time soon.
In other El Al news, the new board of directors, which is headed by former Bank Leumi chairman David Brodet, is seeking a new CEO following the resignation of current CEO Gonen Usishkin, effective in January.
(YWN Israel Desk – Jerusalem)
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2 Responses
Who do they have to thank for shutting them down more than 6 months ago???
this is the opportunity Rozenberg needs to fight the unions and turn the company around. Provided he is able to stand firm with the government’s stance that elal needs to streamline it operations and workforce, by definition that requires overhauling the agreement with the union.