TEL AVIV (Reuters) – The Israeli government on Wednesday announced long-awaited funding to help them overcome the coronavirus crisis and maintain operations in the middle of a year-long stop for travel between -national.
As part of a financial assistance program led by the ministry of finance, the government will purchase $ 210 million in advance flight tickets from Israeli-flagged carrier El Al Airlines and its low-cost subsidiary Sun Dor.
Tickets for the airline’s security guards have been posted at airports that their carriers will be flying over the next 20 years, the finance ministry said in a statement. The amount will remain the same even if security requirements change.
The government plans to offer ticket purchase arrangements to other Israeli airlines that will fly Israeli security guards in the coming days, the ministry said.
The Israeli government had drawn criticism for previous support offers that would have backed loans to airlines but did not stop by providing direct funding. Other global carriers, such as Lufthansa from Germany, received government support as far back as last summer.
The government had recently offered to return 82.5% of a $ 300 million loan to El Al, depending on its new owner, Eli Rozenberg, injecting more money into the airline and cutting costs.
The finance ministry said the program will replace the government’s offer to repay the $ 300 million loan with a flight ticket purchase. The program relies on El Al raising capital of $ 105 million, he said.
The aid plan will be submitted to Prime Minister Benjamin Netanyahu’s cabinet for approval in the coming days, the ministry said.
El Al has reported a two-year loss and increased debt to modernize its fleet. It suspended scheduled passenger flights in March last year at the start of the health crisis when Israel closed its borders to a majority of foreign nationals, adding to their financial sentiments.
Israel has begun reopening some international avenues to its citizens but on a limited basis, citing concerns about new coronavirus mutations.
Reciting with Steven Scheer and Rami Ayyub; edited by Philippa Fletcher