aviation
Like many countries in the world, the State of Israel is mobilizing to assist airlines as part of a gradual move to open the skies and anticipate the opening of Gurion Airport. The Ministry of Finance and El Al announce the conclusion of an alternative outline for a state-guaranteed loan. The outline includes two basic components: payment in advance for the supply of flight tickets of the manpower in the aviation security system in the amount of $ 210 million and the implementation of an efficiency plan each year since the years of the agreement. The agreement will allow El Al to take off again and is an essential component in returning the funds to customers and suppliers.
In this framework, the assistance program will include a number of components:
- Payment for the supply of flight tickets to the manpower in the aviation security system in the amount of $ 210 million against the commitment of Al and Sun Dor to fly the system for 20 years from the date of signing the agreement.
- Efficiency plan as a condition for providing the said assistance outline, the company undertakes to implement the efficiency plan including full implementation of the kibbutz agreements signed together with the company’s employees for the entire period of the agreements with the company’s employees.
- Capital injections In addition, the company undertakes to issue $ 105 million, with at least $ 43 million of them, controlling shareholders. This will be no later than the end of July 2021.
This agreement is subject to the approval of the Government and the approval of the Board of Directors of EL AL. If any of the above conditions and additional conditions in relation to the above service are violated, the amount received will be repaid immediately for the benefit of the State.
El Al will continue to carry out national and commercial missions as required and these days the company is preparing for a gradual return to aviation activity in accordance with the outline approved by the state.
The corona crisis has hit the aviation industry in general and El Al in particular in a fatal way to the point of completely stopping flights. The State of Israel has a gold share in El Al and aviation security is part of the national security and interest of every country and certainly a country like Israel whose geophysical conditions place it in the status of an “island” state.
Many countries have assisted and are assisting their airlines in grants, loans, deferral of fee payments and providing state guarantees.
The assistance comes against the background of EL AL’s great importance to the Israeli economy both as a national leader and as an engine of growth in the economy (annual contribution to GNP of about NIS 2 billion per year directly and indirect assistance to promote tourism as an engine of growth in the economy and emphasis on being a vital enterprise) And tens of thousands in second and third circles).