The largest airline in Israel received a negative response from the Finance Ministry regarding the loan • Factors in the company: "Real closure danger in the near term"
The Treasury recently announced to El that it was rejecting the request for assistance from the largest airline in Israel, even after the amendment to El Al's streamlining. The aid was postponed after a hearing yesterday with the participation of the CEO, a representative of one of the largest banks in Israel, senior officials in the Ministry of Finance and other entities.
Israel today learned that the application for assistance was rejected after failing to reach accreditation between one of the largest banks in Israel and the Treasury to support the airline, despite the plan being filed with the signatures of two of the largest accounting firms in Israel. At the moment, the Ministry of Finance is demanding from Mal for additional efficiency that is expected to include quite a few reductions in the company's manpower.
To date, EL has employed about 6,200 employees. Factors in the company also agree that in its past conduct there were quite a few things that needed improvement, including a relatively large number of employees compared to other companies in the world of similar size. El Al's two-and-a-half-hour efficiency plan for the Treasury also included a reduction in manpower, but the Treasury requires the company to take even more extreme steps.
Last week, we posted here, in Israel today, an interview with Eli Deeps Chairman El Al in which he referred to the short time left for the company to live in the current crisis if no assistance is received from the Ministry of Finance. It is only a few weeks ago and right now, the Treasury has asked Al to submit another efficiency plan, which may take a few days and until it is examined that a response may be received in at least two weeks, a very critical time for the Israeli airline.
In talks with El Al officials, they make it clear that the company is on the verge of closure, if nothing unusual and surprising happens to the Treasury. Yesterday we announced that the company will take part in an 11-plane air train to fly to China to return with medical supplies. The company is currently operating for rescue and cargo flights only and last week its longest flight record with a flight to Melbourne was broken, with the return flight lasting more than 17 hours.
As we recall, El Al ceased all of its regular international operations a few weeks ago and last week the company announced that they would extend the cessation of operations by early May. At present, it is unclear what the future of aviation will be, it is clear that everyone has asked, like all airlines, will have to adapt to a completely new and different situation in the aviation world.