The company's planes will remain on the ground until the end of next month, the CEO of El Al updated in a letter to his employees. "The condition for operating the company - receiving the assistance and an efficiency plan," he noted.
El Al Ussishkin CEO: "Extending the Khalat another month"
Photo:
AFP
The largest airline in Israel shows no signs of recovery, and unlike Israir, which is operating at full capacity, El Al planes will remain on the ground at least until the end of next month.
An announcement to the stock exchange issued by the company states that the limited number of destinations and the current situation are forcing it to continue with the cessation of passenger flights and unpaid leave of its employees for at least until September 30.
Archive // Demonstration of El Al employees // Photo: El Al Employees Committee
Currently, there are 6,080 EL AL employees in HALAT. The company has been operating cargo flights only for several months, and is in a very problematic financial situation - with debts to customers amounting to more than NIS 1 billion. All this, without considering the company's losses and other debts.
While asked about leaving its 45 planes on the ground, the second Israeli airline, Israir, continues operations and takes flights to all green destinations while making rescue flights from different countries, bringing new immigrants to Israel and operating cargo flights using only seven planes.
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In addition to El Al's problematic economic situation, the company will have to reinvent itself in dealing with airlines from the emirates, which are expected to enter the country and greatly affect the profitable lines of the Israeli company, especially the line to Bangkok.
At the same time, El Al continues to examine the offer of the ultra-Orthodox businessman Eli Rosenberg to acquire the company. The Israeli authorities have already handed over all the certificates of his eligibility, and he, for his part, is ready to transfer NIS 260 million to God immediately for 44.99 percent and control of the company. However, the company's board of directors is in no hurry to accept his offer, which will take control of the Borovich family.
El Al CEO Gonen Ussishkin issued a letter to the company's employees, in which he referred to the opening of the sky and the company's situation: "The whole world is dealing with the corona virus and there are no immune countries. The second wave shows that until the vaccine is found, we need to learn to maintain a routine of life alongside the corona, including flights and vacations abroad. The decision in principle to open the sky is welcome and is a first and important swallow.
"At this stage it is a matter of granting an exemption from the obligation of isolation to Israelis returning from 'green' countries, but the distance to the start of regular and significant flight activity is still great. And no less important - that public confidence in flights will be high.
"Regarding the extension of the Khalat, in light of the situation and the lack of a clear expectation at this stage to return to significant activity, unfortunately we are extending the Khalat for another month until September 30. In a previous letter I wrote to you about the circumstances of flight cancellation. "Especially in the field of cargo and later on, even in passengers. As I wrote to you before, the condition for significant operation of the company is to receive assistance and operate the efficiency program."
